Travel demand to remain strong despite recession concerns, WTTC chief says

Travel will remain strong on the back of robust demand in select emerging economies even
as a potential recession looms, a top executive at the World Travel and Tourism Council has
said.
“At the moment, the bookings we’re seeing are record breaking [and] when you survey
people, and you ask what are their most important needs in life, travel is now number three,”
Julia Simpson, WTTC president and chief executive, told The National in an exclusive
interview.
“We also have emerging middle classes. India is a massive growth market, China is an
incredible market [and] the Japanese market is coming back.”
The global travel and tourism sector is expected to reach $9.5 trillion in 2023, only 5 per cent
below 2019 highs, the WTTC reported.
Despite economic and geopolitical challenges, the industry grew 22 per cent to reach $7.7
trillion last year.
An aggressive return to travel post-Covid-19 has resulted in bottlenecks and delays,
particularly in the aviation industry.
The sector has also been facing severe staffing shortages following the lifting of pandemic-
related restrictions last year.
“Demand is outstripping supply … the airlines at the minute can only fly 80 per cent of their
capacity because there’s a backlog in the number of planes that people can buy and also in
some parts of the world, there are some labour shortage pressures,” said Ms Simpson.
“We’ve got people that may have left the sector [and] not all of them have come back,
although that is beginning to improve.”
Global passenger traffic rebounded to 15 per cent below its pre-pandemic levels in February,
led by airlines in the Asia-Pacific region, which recorded the fastest growth, the International
Air Transport Association said in a report last month.
Total passenger traffic worldwide increased by 55.5 per cent on an annual basis in February,
despite the uncertainty hanging over the global economy, Iata said.
The global economy faces a “rocky” recovery as geopolitics, monetary tightening and
inflation continue to weigh on growth, the International Monetary Fund said last month.
The IMF lowered its global economic growth estimate for this year by 0.1 percentage points
to 2.8 per cent, from what it previously projected in January, with the estimate below the 3.4
per cent expansion recorded in 2022 and the historical growth average of 3.8 per cent from
2000 to 2019.

High inflation could also pose a risk to the travel and tourism industry’s recovery, Ms
Simpson said.
Although airports and airlines try to avoid passing higher costs on to their customers, “it has
to be paid for” at the end of the day.
“That is why you will see some higher fares in the market and also higher prices in hotels,”
she added.
Meanwhile, Ms Simpson also called for an increase in sustainable aviation fuel
production using economic incentives.
SAF, which is made from resources such as agricultural waste, green hydrogen and cooking
oil, is widely considered to be the most significant contributor to helping the sector reach its
net-zero emissions target by 2050.
Countries could consider introducing policies similar to the US Inflation Reduction Act, which
provides SAF producers with a tax credit of $1.25 per gallon, Ms Simpson said.
Current SAF production only meets 0.1 per cent to 0.15 per cent of the requirement, despite
a 200 per cent jump in production last year, according to the WTTC.
“One of the big problems with SAF at the minute is it can cost up to five times as much as jet
fuel. Now, aviation is a very price-sensitive business … that’s why we need the financial
offsets [and] some form of grants or subsidies,” said Ms Simpson.
SOURCE: The National News

Flydubai and Air Canada announce a codeshare partnership

Flydubai, the Dubai-based carrier, announced a new partnership with Air Canada to give customers flying between Canada, the Middle East, East Africa, Indian Subcontinent and Southern Asia more convenient travel options.

Pending final regulatory approval, Air Canada’s marketing code will be placed on nine routes operated from Dubai by flydubai, giving customers the ability to travel to these markets with the issuance of a single ticket. The nine routes include Bahrain, Dammam, Jeddah, Madinah and Muscat in the GCC as well as to Colombo and Karachi in the Indian Subcontinent.

Additionally, through an interline arrangement, customers will be able to seamlessly connect in Dubai to more than 60 destinations that flydubai flies to in the Middle East, East Africa and Southern Asia – including Djibouti, Kathmandu and the Maldives. Of these destinations, more than 30 are unique to flydubai and not flown by other partners of Air Canada.

Commenting on the codeshare announcement, Hamad Obaidalla, Chief Commercial Officer at flydubai, said: “we are very pleased to be adding Air Canada to our list of partners and to offer their passengers a seamless travel experience on the flydubai network. We look forward to growing this partnership that offers passengers the benefits and the convenience of connecting via the Dubai aviation hub and we look forward to welcoming them on board soon.”

Mark Galardo, Executive Vice President, Revenue and Network Planning at Air Canada, said: “Air Canada is very pleased to partner with flydubai, further expanding our connectivity to the Middle East and the Indian subcontinent, a growing source of immigration and travel to Canada. This new partnership is a perfect complement to Air Canada’s nonstop service to Dubai from Toronto and Vancouver, and growing our relationship with Emirates, flydubai’s codeshare partner. Together we look forward to bringing together our networks and building a better experience for our customers.”

The airlines also plan on further improving the connection process in Dubai and are working toward introducing expanded features and benefits for one another’s loyalty programme members to be announced later this year.
Seats are available for sale now at aircanada.com, via Air Canada’s Contact Centres, and through travel agents.

SOURCE: flydubai

Etihad Cargo launches AI-powered solutions to transform operations

Etihad Cargo, the cargo and logistics arm of Etihad Airways, has launched an innovative artificial intelligence (AI)-powered solution to transform airfreight operations and boost cargo capacity on flights.

Etihad Cargo had entered into a proof-of-concept agreement in 2021 with logistics technology solutions provider Speedcargo Technologies, becoming one of only a few global carriers to leverage the Singapore-based provider’s AI products to maximise cargo capacity on flights. “Following successful trials of Speedcargo’s AI solutions, Etihad Cargo has rolled out three AI-powered products — Amplifi, Cargo Eye and Assemble — to boost efficiency, digitise and standardise cargo handling across Etihad Cargo’s network, and enhance service levels for the carrier’s customers and partners.

Etihad Cargo uses Amplifi to optimise cargo loads on each flight. The technology dynamically calculates free and usable capacity based on booked cargo, aircraft type and cargo offer. Utilising the system-generated ULD level load plans, Etihad Cargo will maximise the cargo carried on its flights and significantly reduce the risk of overbookings. “Cargo Eye is a scalable, modular system that captures cargo dimensions and volume data. Powered by Microsoft’s IoT Edge solutions and Speedcargo’s proprietary algorithms, Cargo Eye allows Etihad Cargo to digitise cargo as it enters the carrier’s ground handling stations, enabling real-time sharing of cargo information for load planning, build-up planning and forward operations.

Etihad Cargo will deploy Assemble across the carrier’s network of ground handling stations to facilitate the digital planning and build-up of ULDs using the load plans generated by Amplifi. Offering a user-friendly solution, Amplifi provides ground handling partners with build-up plans that provide step-by-step instructions for optimally built ULDs that conform to safety regulations.

Martin Drew, Senior Vice President – Global Sales & Cargo, Etihad Airways says: “Since embarking on its digitalisation strategy in 2018, Etihad Cargo has developed, trialled and launched new technologies and solutions to provide customers and partners with an improved service offering. The recently completed trials of Speedcargo’s AI-powered solutions have demonstrated it is possible to improve cargo capacity utilisation across Etihad Cargo’s fleet and standardise cargo acceptance and build-up processes to improve the consistency and quality of cargo handling at stations within Etihad Cargo’s network.

Etihad Cargo, with the launch of these AI solutions, is creating an information-rich network that connects airline operations and ground handling for better planning and decision-making. Creating digital audit trails of how cargo is received and handled will benefit Etihad Cargo’s customers by providing a more seamless end-to-end experience and improving the productivity and efficiency of planners and ground handling partners, with the ability to handle multiple flights simultaneously.” Trials of the AI-powered, end-to-end cargo handling solutions were carried out in Singapore where this technology has been deployed and is already utilised by Etihad Cargo’s ground handling partners, the release added. The carrier has also launched a pilot programme to implement these solutions in Frankfurt, and is actively collaborating with ground handling partners across Etihad Cargo’s global network.

SOURCE: www.logupdateafrica.com

Kenya Airways to Operate SAF-Powered Nairobi-Amsterdam Flight as Part of Sustainable Flight Challenge

Kenya Airways (KQ) will operate an SAF-powered flight on Africa Day as part of The Sustainable Flight Challenge (TSFC) by SkyTeam. This is a friendly competition between SkyTeam members to promote sustainability and make air travel greener.

This year, TSFC has extended the invitation to alliance members as it seeks to spearhead environmental change. Kenya Airways will work with its subsidiary Jambojet to discover several solutions that can reduce aviation’s impact on the environment by improving sustainability.

KQ’s SAF-powered flight

As part of the sustainability challenge, KQ will operate a flight powered by Sustainable Aviation Fuel (SAF), which is expected to provide essential data and insights that can determine policy decisions, industry regulations, and best practices related to the use of SAF.

The pilot flight will be operated on May 25, 2023, on the return flight between Nairobi Jomo Kenyatta (NBO) and Amsterdam Schiphol (AMS). This will be a very significant milestone for the airline and the continent.Kenya Airways will deploy its Boeing 787-8 Dreamliner on the flight. On the same day, the continent will celebrate African unity and development, with milestones like this set to be part of its future. KQ Group CEO and Managing Director Allan Kilavuka said;

“As an aviation industry, it is our responsibility to ensure that we are actively playing a critical role geared towards solutions and shared learning for sustainable solutions and practices in our industry. This year as our red tail goes green again, we aim to support the industry in achieving net-zero by 2050. We are committed to adopting better practices and creating partnerships with people of similar vision.”

Starting in 2025, all flights taking off from European airports must incorporate a portion of Sustainable Aviation Fuels. Kenya Airways seeks to leverage the industry-wide SAF momentum to unlock competitive advantages in the African aviation market.

SkyTeam and TSFC

SkyTeam is one of the world’s leading airline alliances, with 19 members. Kenya Airways has been a part of SkyTeam since 2007 and is the only African airline in the alliance. KQ and 21 other airlines will participate in the second edition of The Sustainable Flight Challenge.

Launched in 2022, TSFC has returned, and it will take place between May 15 and 28. It is the only sustainability initiative of its kind, aiming to drive meaningful change in the short term.

In the name of “friendly competition,” participating airlines will be challenged to operate their flights as sustainably as possible, above and below wing, from pushback to parking stand. After the competition, airlines will share their innovations and solutions to enhance sustainability.

There are seven categories with awards for the lowest CO2 emissions, greatest CO2 reduction, lowest CO2 emissions ground operations, best in-flight waste management, best collaboration, best adoption, and the best innovation. All qualifying flights have to be part of the airline’s existing network.

Kenya Airways’ commitment to sustainability

The winners of the 2023 sustainability challenge will be recognized in October, with Kenya Airways looking to bring some awards home. The airline will focus on the six essential categories, including e-mobility for passengers and travel light policies.

KQ is fully committed and invested in helping the industry achieve sustainable growth through its Corporate Social Responsibility (CSR) program. CSR highlights its dedication to economic, environmental, and social issues.

Through this, the airline will support activities in education, environment conservation, community well-being, health, water and sanitation, and disaster and humanitarian relief. CSR will be the pillar of reliability, efficiency, and sustainable development in Africa.

KQ has completed various projects at schools and community centers in Africa. Its commitment to education is driven by the belief that a solid educational foundation will ensure that young people are appropriately skilled for the demanding job market.

Source: Simple Flying

UAE Travel & Tourism sector set to recover this year, says WTTC

The World Travel & Tourism Council’s (WTTC) 2023 Economic Impact Research (EIR) today reveals the UAE Travel & Tourism sector is projected to meet the 2019 peak this year.

The sector is set to contribute AED 180.6 billion to the UAE economy by the end of 2023, almost matching the 2019 high AED 183.4 billion, only 1.5% behind pre-pandemic levels. This represents nearly 10% of the total economy.

WTTC is also forecasting that the sector will create nearly 7,000 jobs this year, surpassing the pre-pandemic peak of 745,100, to reach more than 758,000 employed by Travel & Tourism.

A look back on last year

Last year, the Travel & Tourism sector’s GDP contribution grew more than 60% to reach nearly AED 167 billion, representing 9% of the country’s economy.

The sector also created more than 89,000 more jobs from the previous year to reach more than 751,000 jobs nationally, surpassing 2019 levels by an additional 6,000 jobs.

2022 saw the return of international travellers to the UAE, with India (13%), Oman (8%), Saudi Arabia (8%), and UK (7%) leading as source markets for international arrivals.

According to the data, in 2022, international visitors contributed AED 117.6 billion to the national economy, representing a year-on-year growth of 65.3%, although 19% behind 2019 levels.

In terms of domestic spend, 2022 saw a 35.7% year-on-year jump, reaching AED 46.9 billion, 10.6% above its pre-pandemic counterpart.

Julia Simpson, WTTC President & CEO, said: “The national Travel & Tourism sector is recovering at a rapid pace, proving the UAE continues to grow in popularity amongst international travellers. The UAE is home to one of the world’s busiest and successful airports, Dubai International, which acts as a gateway to the Middle East.

“The future for the sector looks positive. By the end of this year, the sector’s contribution will level that of 2019, and over the next decade, growth will outstrip the national GDP and create more than 114,000 new jobs, representing one in nine jobs.

“Our recent Cities EIR Report highlighted the appeal tourist destinations across the country, such as Dubai and Abu Dhabi, continue to hold for international travellers. These cities have shown an incredible resilience and strong leadership.”

What does the next decade look like?

The global tourism body is forecasting that the sector will grow its GDP contribution to AED 235.5 billion by 2033, representing 10.2% of the UAE economy.

Over the next decade, Travel & Tourism is set to employ more than 872,000 people across the country, representing nearly 12% of all jobs.

Middle East

In 2022, the Middle East’s Travel & Tourism sector contributed more than AED 1.2 trillion to the regional economy, 25.3% below the 2019 peak. By the end of this year, WTTC forecasts the regional sector’s GDP contribution will reach more than AED 1.5 trillion (U.S.$ 413.2 billion) and be within touching distance of the 2019 highpoint.

According to WTTC’s latest Economic Impact Report, the sector employed more than 6.8 million people across the region last year, an increase of 865,000 from the previous year, but still 8.7% behind the 2019 peak. The sector will nearly recover the jobs lost during the pandemic by the end of this year, only 2% behind pre-pandemic levels.

Over the next decade, the Travel & Tourism sector is projected to reach a contribution of nearly AED 2.5 trillion and employ more than 9.8 million people.

SOURCE: www.breakingtravelnews.com

Tourism stats indicate journey to recovery

Tourism Minister Patricia de Lille says the COVID-19 pandemic undoubtedly left a dent in the tourism industry, but the resilient sector is recovering.

“South Africa offers travellers unparalleled beauty and affordability, making it an irresistible destination,” De Lille said when addressing a media briefing on the sidelines of Africa’s Travel Indaba, which is underway in Durban.

De Lille said the sector is geared to catapult inbound tourism numbers beyond pre-COVID-19 levels.

“Achieving this monumental goal requires a united front: government, private sector, and all tourism stakeholders joining forces to redefine the travel experience in our beloved country.”

She said 2022 heralded a resurgence, with nearly 5.8 million visitors gracing South Africa’s shores, including four million from Africa. This was a 152.6% increase from 2021.

“We’re not quite at the 10 million arrivals of 2019 but rest assured, our tireless collaboration with the private sector and Africa will take us there and beyond in no time.

“As the world reawakens, tourists are flocking back to South Africa, enticed by our unparalleled natural beauty and the warmth of our people. We are broadcasting a clear message – South Africa is open for tourism, welcoming business, and eagerly awaiting travelers from across Africa and the globe.”

De Lille said the world is rediscovering South Africa, and will that will not only reach but will surpass pre-COVID numbers.

“Our determination and unity will light the way to a brighter future for South African tourism. From a domestic perspective, we have seen an incredible resilience, with Q1 2023 performance surpassing pre-pandemic levels and those of Q1 2022,” De Lille said.

De Lille said tourists from Europe contributed the most spend of R10.8 billion, followed by Africa with a collective spend of R9.3 billion.

According to recent statistics, an impressive 2.1 million visitors were recorded, a 102.5% increase compared to the same period in 2022.

The African continent led the way again, with 1.6 million arrivals, followed by Europe’s 387 000 and the Americas’ 104 000 visitors.

De Lille said a significant driver of these remarkable figures is as a result of lifting of travel restrictions and affordability.

“After two years of restrictions and confinement, travellers are eager to explore wide-open spaces, and South Africa offers these in abundance,” De Lille said.

Over 500 000 Zimbabwean travellers journeyed to South Africa between January and March 2023 compared to 643 000 in the same period in 2019 and 173 000 in 2022.

Mozambique followed as the second-largest source market, boasting over 354 000 arrivals between January and March 2023.

According to De Lille, South Africa offers a diverse range of captivating destinations for travellers, with Gauteng taking the lead in international arrivals, spend and bed nights.

International visitors tend to spend most of their nights in the Western Cape, followed by Gauteng. The Eastern Cape, Northern Cape, KZN and the North West draw tourists to their unique charms.

Source: allAfrica.com

UNWTO Identifies Priorities for Boosting Rural Tourism Potential

UNWTO has launched a new report to determine the status of rural tourism in its Member States and identify the main challenges and opportunities for tourism as a driver for rural development from a policy perspective.

“Tourism and Rural Development: A Policy Perspective – Results of the UNWTO Survey on Tourism for Rural Development to Member States” represents the first baseline document of UNWTO on tourism and rural development undertaken with the participation of Member States worldwide. 

Key Findings: Rural Tourism for Opportunity

More than half of all Member States (59%) stated that rural tourism is a priority
Almost all Member States (96%) foresee a better future for rural tourism in the upcoming years
The creation of new jobs, improvement of livelihoods and fighting depopulation were the most frequently-cited opportunities offered by tourism for rural areas
Member States also identified the conservation and promotion of cultural heritage and environmental protection as among the biggest potential benefits of rural tourism.

The UNWTO research also identified three main challenges associated with realizing the potential of tourism for rural development:

The “infrastructure gap” in rural areas: Deficiencies in roads, ports, airports and other infrastructure that allow access to rural areas remain a challenge for the surveyed countries. 
Rural depopulation: Seasonality and product competitiveness add to this challenge, increasing the instability of rural businesses, which prevents the retention of population and human resources.
The lack of education and training, as well as skills development, in addition to the capacity to attract and retain workforce talent. 

Other challenges include limitations in accessing financial systems, restrictions in the development of innovative tourism products in rural areas, managing the impacts of degradation of natural resources, and limitations in handling data, digitalization, and knowledge management.

UNWTO: Advancing Tourism for the SDGs

In terms of how tourism can help in supporting the Sustainable Development Goals (SDGs), UNWTO Member States emphasized the potential of rural tourism for advancing SDG 8 (Decent Work and Economic Growth) SDG 1 (No Poverty), SDG 11 (Sustainable cities and communities) and SDG 5 (Gender Equality).

The report was launched during the 118th Session of the UNWTO Executive Council in Punta Cana, Dominican Republic.  It forms part of the work of UNWTO’s Tourism for Rural Development Programme, established to develop initiatives and programmes to grow the sector in size and relevance as well as to monitor it in destinations worldwide.

SOURCE: www.breakingtravelnews.com

Amadeus expands Egyptair technology partnership

Amadeus has signed a long-term, comprehensive technology partnership with Egyptair.

The deal is an extension of an existing relationship between the Egyptian flag-carrier and the travel technology leader, and comes as the airline refreshes its digital offering ahead of a renewed period of growth. 

Yehia Zakaria, chief executive, Egyptair Group, said: “Amadeus is in a position to support Egyptair throughout its digital transformation, allowing us to provide customers with a best-in-class travel experience.

“Once these advanced solutions, including a new digital e-commerce platform are fully implemented, our employees will have the freedom and flexibility to better serve our passengers around the world.”

Included in the deal is Amadeus Revenue Management, which accurately forecasts demand by analyzing customer purchase behaviour, competitor pricing and yield capacity.

New digital solutions will also deliver a frictionless web and mobile experience to travelers while Amadeus Altéa Booking Intelligence will help minimize fraud.

Finally, Egyptair will migrate to a new loyalty platform, where members will benefit from customer-centric experiences based upon traveler insights.

Maher Koubaa, vice president, EMEA, airlines, Amadeus, said: “Amadeus has long been a trusted partner of Egyptair and the renewal we have signed will extend the relationship for many years to come.

“It also deepens the connection, with the flag-carrier positioning itself for future growth in the Middle East and beyond, thanks to the digital upgrade and operational enhancements that this suite of innovative solutions will deliver for Egyptair, its staff and customers.” 

Amadeus continues to build its position in Egypt and the Middle East, with discussions ongoing with a number of other carriers in the region. 
Egyptair is the state-owned flag carrier of Egypt.

The airline is headquartered at Cairo International Airport, its main hub, and operates scheduled passenger and freight services to 81 destinations in the Middle East, Europe, Africa, Asia and the Americas.

Egyptair is a member of Star Alliance.

SOURCE: www.breakingtravelnews.com

Emirates Group reports most profitable year ever

The Emirates Group today released its 2022-23 Annual Report, reporting its most profitable
year ever on the back of strong demand across its businesses.  Emirates (airline) achieved new
record profits, a complete turnaround from its loss position last year. Both Emirates and dnata
(Dubai National Air Travel Agency) saw significant revenue increases in 2022-23 as the Group
expanded its air transport and travel-related operations following the removal of nearly all
pandemic-related restrictions around the world.


For the financial year ended 31 March 2023, the Emirates Group posted a record profit of AED
10.9 billion (US$ 3.0 billion) compared with an AED 3.8 billion (US$ 1.0 billion) loss for last year.
The Group’s revenue was AED 119.8 billion (US$ 32.6 billion), an increase of 81% over last
year’s results. The Group’s cash balance was AED 42.5 billion (US$ 11.6 billion), the highest
ever reported, up 65% from last year mainly due to strong demand across its core business
divisions and markets.


HH Sheikh Ahmed  bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and
Group,  said: “We’re proud of our 2022-23 performance which is not only a full recovery, but
also a record result. This achievement would not have been possible without HH Sheikh
Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of
Dubai, whose leadership has been critical to our success today and through the years. The
architect of Dubai’s progressive economic policies, HH Sheikh Mohammed is also the engine
behind the Emirates Group’s trajectory. Without his drive and support, Emirates will be half the
size of what we are today.”

Source: www.airlinegeeks.com

Shareholder row continues around Kenya’s Bluebird Aviation as court orders fresh valuation of the airline.

Due to lack of transparency, a Kenyan High Court has ordered a fresh valuation of charter carrier Bluebird Aviation (Kenya) amid a buy-out dispute between shareholders, reports Standard Media in Nairobi.

According to ch-aviation.com, Commercial Court division Judge Njoki Mwangi has set aside a valuation report tabled in court last year valuing the shares of founder Adan Abid Yusuf at KES320 million Kenyan shilling (USD2.3 million), according to the Nation Media Group.

The judge found there was no transparency and independence in the preparation of the valuation report compiled by RSM (East Africa) Consulting Ltd on behalf of Yusuf’s partners, former Kenya Air Force officers Hussein Farah and Hussein Mohammed and pilot Mohammed Abdikadir, who each own 25% of the company. The airline was founded in 1992 to transport shipments of miraa or khat to Somalia, a stimulant plant native to East Africa and the Arabian Peninsula.

However, a shareholder fallout has seen Yusuf file multiple legal actions against his partners over the years, resulting in the High Court directing his partners to buy him out three years ago. The valuation report assessed the value of the carrier’s aircraft, land and buildings at Nairobi Wilson, reviewed its balance sheet and prepared a financial model incorporating historical performance over the preceding three years. Upon conclusion, the report was prepared and shared with the parties, and the money was wired to a judiciary account. Yusuf’s shares were transferred to Abdikadir.

However, Yusuf challenged the report arguing that the KES320 million was a speculative figure. He was supplied with the report on December 6, 2021, but the airline’s audited financial statements for the financial years from 2017 to 2021 were not provided as backup.

The judge directed the four parties to appoint a new valuer. If the value of the airline is found to be less, the airline would be refunded from the amount already deposited in the judiciary account. If the value is found to be more, the airline would have seven days from the new report being filed to top up the difference. The sum held in court will be released to the applicant’s (Yusuf’s) advocate within seven days of filing the new valuation report in court. Yusuf will bear the cost of the new valuation.

According to the ch-aviation fleets advanced module, Bluebird Aviation operates a fleet of ten (mostly leased) aircraft, including four DHC-8-100s, one DHC-8-Q400, three DHC-8-Q400(PF) freighters, and two F50s

SOURCE: ATQ News