Africa: Kenya, Tanzania, and South Africa Lead Efforts to Attract Chinese Tourists and Revitalize Tourism Sectors

Kenya, Tanzania, and South Africa are taking the lead among African nations in revitalizing their tourism markets following the pandemic.

With a keen focus on capturing the attention of Chinese travelers, these countries are strategically positioning themselves to attract visitors from China. By tapping into the growing interest of Chinese tourists in exploring Africa’s rich landscapes, wildlife, and cultural offerings, Kenya, Tanzania, and South Africa aim to revitalize their tourism sectors and drive post-pandemic recovery.

According to finance.yahoo.com, The three countries, along with Egypt, were among the first popular destinations for Chinese visitors after the Asian giant relaxed two-year-old pandemic rules to allow its citizens to travel for tourism in February.

All three countries have been implementing long-term strategies — including resuming direct flights to China, relaxed e-visa requirements, direct marketing in China through embassies and travel agents — and investing heavily to woo Chinese tourists.

Kenya is expanding its focus to reach more Chinese tourists by marketing through travel agents, partnerships with airlines and tour operators and social media platforms, according to John Chirchir, acting chief executive of Kenya Tourism Board. There’s a particular focus on WeChat, Mafengwo, Weibo, and Douyin, the China-based sister video channel to TikTok.

Chirchir said Kenya recorded 8,000 arrivals between January and April this year compared to just under 6,000 for the same period last year.

In 2022, Kenya earned $2.13 billion in income from tourism after a surge in visitors as COVID restrictions eased around the world, according to the tourism board. The ministry has forecast Kenya could recover to 2019 tourism numbers by 2024.

Similarly, South Africa has targeted job growth with the resumption of Chinese tourist activities in the country, said Nomasonto Ndlovu, chief operations officer of South Africa Tourism. She told Semafor Africa that with additional direct flights resuming from China to Johannesburg, for example, the country projects to receive around 8,000 Chinese tourists per month later this year. This would bring it back to 2019 levels when South Africa received 94,000 visitors from China.

African tourist markets are focused on the vast Chinese markets as part of a wider effort to overcome difficult economic environments. Jobs and foreign exchange earnings have yet to recover after the global pandemic, and many countries are grappling with extended economic downturns exacerbated by the fallout from Russian invasion of Ukraine. Although tourism usually accounts for less than 10% of GDP in most of the larger African economies, aside from Tanzania (17%), it punches above its weight as a contributor to foreign exchange earnings.

Local travel companies are taking it upon themselves to promote their countries on the ground in China rather than just hope for visitors. “That makes it possible to cast the net wider as we showcase Kenya’s tourist attractions,” said Darlene Anjimbi, a tour manager at Kenya China Travels and Tours.

Much of the long-term tourism business in Africa has traditionally targeted Europeans and North Americans in terms of everything from the types of entertainment offered to familiar languages and cuisine at hotels and on tours — and they still dominate in visitor numbers. In Kenya for instance, travelers from the United States alone accounted for over 12% of international visitors last year.

Source: atqnews

Lobby seeks consolidation of Africa airlines to lift industry.

Issuance of passports for free to East African Community (EAC) citizens is one of the practices that can boost air travel in the region, a study published by A regional private sector lobby suggests.

Airlines in the region can also consolidate, going the European or American way, which the study by the East African Business Council (EABC) notes, would stimulate passenger and cargo movement by air.

The study, which analyses aviation laws, reports and academic publications, pokes holes into the current industry practices against the cost of operations and the push for open skies initiative.

It is titled Study on Air Space Liberalisation in the East African Community: Focus on Cost Drivers and Regulations.

The study, commissioned by EABC in partnership with Trademark East Africa and funded by Kenya’s Ministry of Foreign Affairs and the Dutch government, focused on six areas – operational costs, existing air transport regulations in EAC, effects of domesticated EAC space, benefits of adoption of the EAC Single Space Agreement and the impact of aviation costs on cargo volumes and evaluation of best practices in other regions.

One of the best practices suggested in the study published in April is the consolidation of the airline business in the region through mergers and acquisitions.

It argues that airline consolidation, mergers and acquisitions in the United States and Europe resulted from the need to stimulate growth within the industry.

“It is a practice that can be adopted,” reads the study. It documents that from 2000 to 2010, the US airline market consolidated into four airlines.

The study also notes that the same trend is slowly being replicated in Europe.

“The Air France-KLM merger, which took place on May 5, 2004, rekindled European airline’s interest in consolidation. The EAC can adopt and consolidate airlines to increase their competitiveness globally,” it states. The study measured air transport competitiveness as assessed in the World Economic Forum by looking at airport connectivity and efficiency.

Connectivity measures the level of integration of a country within the global air transport network while efficiency is based on services. This includes issues to do with frequency, punctuality, speed and price.

“The rankings indicate that on average, EAC countries are ranked low in terms of competitiveness indicators,” the study says. The region also has limited infrastructure, which is a challenge to the air transport sector. The study cites South Sudan, which lacks full control of its airspace due to a lack of well-developed infrastructure and qualified personnel.

“In Burundi, the number of flights to Bujumbura is limited, compounded by a lack of a national carrier, which contributes to an increase in the cost of air transport,” notes the study.

South Sudan’s challenges are also exacerbated by insecurity.

The study has also faulted the lack of harmonised charges, fees and taxes imposed by the respective national regulations and authorities. It notes that Juba International Airport is the most expensive airport in the EAC region with an airport tax on passengers of sh18,300 (USD 122).

“The charge is more than twice the departure taxes charged by the different partner states,” the study says.

Entebbe International Airport charges $50.6 (Sh7,500) for every departing passenger, with$40 (Sh6,000) as passenger service charge and $10 (Sh1,500) as security charge and $0.6 (Sh90) as passenger handling charge.

Jomo Kenyatta International Airport (JKIA), on the other hand, charges a passenger service fee of $50 (Sh7,500) for every departing passenger and does not charge extra charges for security and passenger handling services. Julius Nyerere International Airport for its part, charges a passenger service charge of $37 (Sh5,550) and a security charge of $10 (Sh1,500).

Bujumbura International Airport and Kigali International Airport have the lowest passenger departure charges of $40 (Sh6,000) and $42 (Sh6,300) respectively.

The study found out that ticket prices also vary greatly even for the same distance and same airline if the departure time is different or if the ticket is booked at different times.

Ticket prices are even higher if there is a connection involved.

“EAC member states such as South Sudan and Burundi with limited direct flights and without national airlines, were generally found to have high average ticket prices,” the study says. It documents that the ticket price per kilometre in the EAC region is more than twice the ticket price for destinations in Europe and other countries in Africa.

“The average ticket price per kilometre in the EAC is  Sh58 ($0.39 )/km compared to only $0.21 (Sh30)/km in other African countries and $0.12 (Sh18)/km for destination airports in Europe, Asia and the Middle East,” the study adds.

The study notes that there are so many barriers to a vibrant air travel ecosystem and they need to be “knocked down.”

Some of these include reviewing check-in times. “Most passengers are tired of getting to the airport so early; let’s cut bag-free, pre-screened short-haul flyers some slack and allow them a 20-minute window to check in,” reads the study.  The study recommends the implementation of visa waiver programmes in all countries where most business and tourism come from to spur air transport in the region.

Source: The Standard

Zambia, Kenya partner to promote outbound tourism

In a bid to promote African continental travel, a high delegation led by Zambia’s minister for Tourism, Rodney Malindi Sikumba, had a high-level engagement recently with the Kenya Association of Travel Agents (KATA) to discuss and establish a strategic partnership to promote outbound tourism from Kenya to Zambia’s tourism destinations.

The two countries aim to tap into each other’s tourism markets, a vital source for tourism influx, boosting both nations’ economies and fostering cultural exchange.

Dr Joseph Kithitu, KATA Chairperson, expressed the association’s enthusiasm for growing the travel trade and emphasised the readiness of KATA members to sell Zambia.

He stressed the need to create a business case for Zambia’s travel trade and develop a salable product out of the partnership.

 “Today, we should focus on the commercialisation of this partnership on a B2B and B2C level and capitalise on the visa-free access between our countries to promote outbound tourism flows into Zambia and vice versa. The market is ripe, ready, and can pay,” he said.

Kenya and Zambia have already signed a Memorandum of Understanding (MOU) on tourism, one of them touching on cooperation between the training institute of tourism in Zambia and that in Kenya.

While both countries are big on wildlife, there are other elements that can make them complimentary to each other in terms of product offerings.

For instance, the fact that Kenya has a big national park right in the middle of the city is a learning lesson for Zambia on how to enhance their national park in Lusaka. Zambia has 20 national parks with the largest being Kafue and it’s the second largest in Africa.

They also have the iconic Victoria Falls, which is one of the seven natural wonders of the world and hosts one of the largest mammals (bat) migration at the Kasanga national park.

This partnership is a step in the actualisation of the MOUs and will encompass various collaborative areas, such as knowledge exchange, familiarisation visits, and encouraging tourist flows between Kenya and Zambia.

Additionally, both parties will share their respective calendars of events to facilitate stakeholder engagement and foster regional cooperation in the spirit of the Africa Continental Free Trade Area.

“This partnership between Kenya Association of Travel Agents and their counterparts in Zambia is a step towards the private sector growing the tourism industry, and my ministry is rallying support behind these initiatives,” said Sikumba.

The minister further highlighted the importance of marketing and packaging Africa, coordinating the travel trade with suppliers, and establishing homegrown solutions.

“Through this partnership, Kenya’s travel trade will be trained on tourism offerings in Zambia. KATA will also provide capacity building for Zambia’s travel trade to enable them to sell the Kenyan tourism product,” noted Agnes Mucuha, KATA

Source: PD

Sustainable travel in Dubai: Eco-friendly

Dubai, a city known for its opulence and luxury, is increasingly embracing sustainability and eco-friendly initiatives. In recent years, the city has made significant strides in promoting green practices in various sectors, including tourism. In this article, we’ll highlight Dubai’s commitment to sustainability by showcasing eco-friendly hotels, attractions, and initiatives that allow travellers to enjoy the city while minimizing their environmental impact during their Dubai holiday

Green accommodation: Eco-friendly hotels in Dubai
Several hotels in Dubai have adopted eco-friendly practices and sustainable designs, offering travellers comfortable stays without compromising on environmental responsibility.

Jumeirah Creekside hotel: A green oasis
The Jumeirah Creekside Hotel has been awarded the Green Globe Certification for its commitment to sustainability. The hotel features energy-efficient lighting, water- saving devices, and a robust recycling programme. Additionally, the hotel’s lush garden surroundings provide a green oasis, creating a serene atmosphere for guests.

JA ocean view hotel: Sustainability by the sea
Located along The Walk at Jumeirah Beach Residence, the JA Ocean View Hotel is another recipient of the Green Globe Certification. The hotel focuses on energy conservation, waste management, and community engagement to promote sustainable practices. Guests can enjoy stunning sea views while appreciating the hotel’s eco-friendly ethos.

Environmentally conscious attractions
Dubai offers several attractions that showcase the city’s commitment to sustainability and environmental preservation.

Dubai safari park: Wildlife conservation and education
Dubai Safari Park, a 119-hectare wildlife reserve, is home to over 2,500 animals from around the world. The Park focuses on conservation, education, and sustainable practices, such as using solar power for its facilities and implementing extensive recycling programs. Visitors can learn about wildlife conservation while enjoying close encounters with the park’s diverse inhabitants.

The green planet: An urban rainforest experiences
The Green Planet, an indoor tropical rainforest in the heart of Dubai, offers a unique opportunity for visitors to learn about the importance of biodiversity and environmental conservation. The facility features a four-storey living ecosystem, complete with over 3,000 plants and animals, and uses sustainable technologies such as energy-efficient lighting and climate control systems.

Sustainable initiatives: Dubai’s eco-friendly efforts
The city of Dubai has implemented various initiatives aimed at reducing its environmental footprint and promoting sustainable practices.

Solar power: Harnessing the desert sun
Dubai is investing heavily in renewable energy, with ambitious plans to generate 75% of its power from clean sources by 2050. The Mohammed bin Rashid Al Maktoum Solar Park, one of the largest solar projects in the world, is a testament to the city’s commitment to harnessing the power of the desert sun.

Public transportation: cleaner, greener travel
Dubai’s public transportation network, including the Dubai Metro and eco-friendly buses, offers travellers a more sustainable way to explore the city. The metro system is entirely electric, reducing greenhouse gas emissions, while the buses run on compressed natural gas, a cleaner alternative to traditional fuels.

Dubai holidays: Exploring the city responsibly
When planning your Dubai holidays, consider incorporating eco-friendly hotels and attractions into your itinerary. By choosing to support sustainable initiatives and businesses, you can enjoy the city’s many wonders while minimizing your environmental impact. From green accommodations to environmentally conscious attractions, Dubai offers a range of options for the responsible traveler, ensuring a memorable and eco-friendly experience in this dynamic city.

SOURCE: Traveldailynews  

WTTC G20 Public-Private Dialogue shines light on Travel & Tourism opportunities

The World Travel & Tourism Council (WTTC) gathered leading Travel & Tourism stakeholders and G20 Ministers in a Public-Private Dialogue in Goa to address the sector’s vast potential and challenges.

Joined by India’s Minister of Tourism, the Hon. G. Kishan Reddy, and UNWTO Secretary-General Zurab Pololikashvili, Julia Simpson, WTTC President & CEO commended India’s Ministry of Tourism for its leadership during India’s G20 Presidency and highlighted Travel & Tourism’s substantial contribution not only to the global economy but to employment.

Currently representing 9.2% of the world’s GDP and supporting one in every 11 jobs globally, the sector is experiencing remarkable growth, outpacing the global economy by growing twice as fast.

Julia Simpson, WTTC President & CEO, said: “It is proven where governments and the private sector work together in Travel & Tourism the economy is stronger, jobs are created, and people get to enjoy and understand other cultures. Together, businesses and governments can build back a better, stronger, and more resilient sector. Governments also heard first-hand the value of having streamlined visa processes, digital borders, and a strong focus on sustainability. We need each other to achieve this”.

During her address, Simpson emphasised the opportunities for investors, governments, and society to achieve the Sustainable Development Goals (SDGs) through collaboration.

India’s impressive expansion in Travel & Tourism was praised as a prime example.

The sector is projected to contribute over INR 16.5TN to India’s economy this year, create 1.6MN new jobs, to reach a total employment figure of nearly 40MN people.

By the end of the decade, Travel & Tourism is forecast to contribute approximately 7% of India’s economy.

During the dialogue, Simpson addressed three key challenges facing the industry.

  1. Visa backlogs pose a significant obstacle, with excessive waiting times ranging from 200 days to a year for certain destinations. Investment in digital visas and biometrics, exemplified by Dubai Airport’s “smart gates”, is a successful example of technology streamlining travel processes
  2. Sustainable Aviation Fuel (SAF) plays a vital role in reducing carbon emissions, with the potential to cut emissions by up to 80% compared to traditional jet fuel. However, current production levels fall short and WTTC called on all G20 countries to conduct feasibility studies on SAF, to further facilitate decarbonisation
  3. Staff shortages resulting from the pandemic continue to be a challenge. Collaborative efforts between governments and the private sector, along with enhanced training programs and targeted support for women, young people, and high-wage jobs will be crucial in addressing this issue
    Simpson also highlighted the groundbreaking environmental and social research conducted by WTTC in collaboration with Saudi-based Sustainable Global Tourism Center.

This research offers comprehensive insights into the sector’s environmental and social impact, tracking data on wages, age groups, and gender, the research aims to drive progress towards the SDGs.

Simpson also underscored the potential of young people as a talent pool. With 65% of Indians under 35 years old, India’s G20 presidency recognises the need to address youth unemployment and create opportunities for this demographic.

New data from WTTC and the Sustainable Global Tourism Center also reveals that the sector experienced a 27.6% growth in youth employment between 2010 and 2019.

Despite dropping in 2020 to almost the same level it was a decade before in 2010, sector youth employment appears to be rebounding quickly.

The data also shows that Travel & Tourism’s share of youth employment has grown since 2010, from 6.4% in 2010 to 8.2% in 2021.

WTTC’s latest research highlights the importance for high-quality jobs that provide dignity in their work, to make the sector an attractive industry for young people to develop their long-term careers.

SOURCE: Traveldailynews

Record: Ethiopian Airlines Now Has 9 Weekly JFK & Newark Boeing 787 Flights

Ethiopian Airlines now serves New Jersey and New York nine-weekly, its highest frequency yet. On May 29th, it switched JFK’s one-stop from Lomé, Togo, to Abidjan, Cote D’Ivore, reverting to what it had in 2019.

Ethiopian to Newark & JFK

Africa’s largest airline inaugurated Newark in July 2016 and JFK in June 2019. Both are among the world’s busiest long-haul airports. While other aircraft have been used occasionally, they continue to revolve around the 270-seat Boeing 787-8.

The schedule is as follows, with all times local. The same plane, same flight number stopping service from Ethiopia to the US is the definition of a ‘direct’ route, with non-stops on the individual legs.

  • Addis Ababa-Lomé-Newark: 08:45-11:15, 12:45-19:45 (Tue, Thu, Fri, Sat, Sun)
  • Newark-Lomé-Addis Ababa: 21:45-11:50+1, 13:00-21:25 (Tue, Thu, Fri, Sat, Sun)
  • Addis Ababa-Abidjan-JFK: 09:00-12:00, 13:30-20:00 (Mon, Wed, Sat, Sun)
  • JFK-Abidjan-Addis Ababa: 22:00-11:35+1, 12:35-21:40 (Mon, Wed, Sat, Sun)

Addis-Lomé-Newark

Covering 7,761 miles (12,491 km) each way, this routing was first served in June 2016. Between May 2018 and June 2019, it had additional flights via Abidjan before again entirely routing via Togo.

Passengers can transit between Newark and multiple destinations in West Africa on flights operated by Ethiopian’s partner ASKY. According to Cirium data, Ethiopian codeshares to 12 places over Lomé, of which Lagos, Accra, Abuja, and Douala are probably the most important. They can also connect to numerous places over Addis, although for many, a two-stop option is less competitive.

Examining booking data suggests that passengers transiting over fellow Star Alliance carrier United’s Newark hub appear less important than might be expected, partly influenced by the arrival time of 19:45.

Addis-Abidjan-JFK

Some 116 miles (180 km) longer than its Newark routing, Addis-Abidjan-JFK covers 7,873 miles (12,670 km). Given the equipment used, I like the ‘787’ bit.

Flying via Abidjan means that Ethiopian does not benefit from the pretty extensive connectivity afforded by ASKY, but cannibalization with Newark reduces. It also serves Washington Dulles via Lomé.

Still, Ethiopian codeshares with Air Côte d’Ivoire to six places via Abidjan in July, including Accra and Lagos. However, the wait time in Abidjan from JFK is often many hours, raising the question of how popular this would be. It is much quicker and more competitive on the way back.

It seems it is happy to offset this by targeting the NY-Abidjan-NY point-to-point market, which booking data shows to have approximately 26,000 passengers in 2019. It is meaningfully larger than Lomé. And, like Newark, passengers can transit from JFK to multiple places over Addis, but, again, with two stops.

Six North American airports

Ethiopian’s North American passenger network is July sees Washington Dulles (10 weekly), Newark (five weekly), Toronto (five weekly), JFK (four weekly), and Atlanta (four weekly). The latter was inaugurated in May.

To overcome Addis Ababa’s high elevation – the airport is at 7,657 feet and more than a mile high – which limits aircraft performance on takeoff, all flights to North America stop en route. Most do so in Dublin. The exceptions are Lomé for Newark, Abidjan for JFK, and Dublin and Lomé for Dulles.

SOURCE: Simple Flying

Turkish Airlines Introduces Flight Tracker Digital Globe to Enhance Guest Experience

Turkish Airlines, the airline that flies to the more countries than any other in the world, made a new addition to its privileged services offered to guests in this rapidly evolving era of technology and digitalization where customer satisfaction has become increasingly important. The flag carrier has introduced the Flight Tracker digital globe for use in its Business Lounge, emphasizing the diverse and enjoyable aspects of digital channels, modernized with a solution oriented approach. With the Flight Tracker digital globe, guests will be able to track real-time locations of Turkish Airlines aircraft, flown destinations, current weather conditions, and experience the use of many different features such as flight information and Miles&Smiles membership. This technology, which is a result of extensive market research and presented for passengers’ appreciation, was launched with live flight information and destination data, along with a unique interface design exclusive to Turkish Airlines. On the new service of the flag carrier, Turkish Airlines Chief Marketing Officer Ahmet Olmuştur stated: “As Turkish Airlines, from the first day we were established, we have been working to provide our guests with a flawless travel experience, in addition to safety and comfort during their travels. With our new service, we offer our guests the opportunity to learn the weather of the destinations they will go to, and also the possibility to create a Miles&Smiles membership via QR code. We prepare and develop our solution alternatives according to the needs of our guests with the strength that the evolving and changing technology adds to our brand.” Turkish Airlines has raised the bar in its service approach by adding the Flight Tracker digital globe to its Business Lounge, where guests also enjoy spending time with the Hezarfen Flight Simulator, console games, a golf area and children’s play areas.
SOURCE: breakingtravelnews

Qatar Airways and Air Seychelles Sign Codeshare Agreement

Qatar Airways announces a codeshare agreement with Air Seychelles, the flag carrier of the Republic of Seychelles, allowing passengers on both networks seamless travel to one of the world’s most exotic and unique destinations.

Qatar Airways serves over 160 destinations worldwide and connects travellers from Africa, America, Asia and Europe easily to and from Seychelles through its hub in Doha, Hamad International Airport (HIA), currently named the ‘Best Airport in the Middle East’. Moreover, Qatar Airways Privilege Club members can also earn and spend Avios at almost 200 outlets at Qatar Duty Free (QDF).

Currently, Qatar Airways operates a daily flight between HIA and Seychelles International Airport (SEZ), located on the Island of Mahé, near the capital city of Victoria, with a morning arrival and evening departure from Mahé Island. Because of this new codeshare agreement, Qatar Airways will place its code on Air Seychelles’ operated flights between Mahé and Praslin and enable passengers to continue their journey conveniently using a single booking. Praslin is home to the pristine Vallée de Mai Nature Reserve and UNESCO World Heritage Site along with palm-fringed beaches, like Anse Georgette and Anse Lazio, both bordered by large granite boulders. Passengers can book their travel with both airlines, through online travel agencies, as well as with local travel agents.
 
Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker, said: “Our strategy of facilitating connectivity to African markets through partnerships is in line with this enhanced cooperation with Air Seychelles. Our two airlines are pleased to work together to benefit passengers with more travel choices and to support the tourism industry in Seychelles.”

Air Seychelles maintains its domestic network with a fleet of five Twin Otter TurboProps operating between Mahé and Praslin as well as charter flights. The airline celebrated 45 years in October 2022 and won the title ‘Indian Ocean’s Leading Airline’ at the World Travel Awards held in Kenya.
 
Air Seychelles, Acting Chief Executive Officer, Captain Sandy Benoiton, said: “This new partnership will provide passengers with new connection opportunities and access to unique destinations from both networks.”


SOURCE: Breaking Travel News

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

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