Emirates chief says Covid recovery could take four years

Industry News: 1st June 2020

Emirates Airline President Tim Clark said on Monday it could take the airline four years to rebuild its network that has been decimated by the coronavirus pandemic.

He was speaking during the opening session of three days of webinars and conferences organised by Arabian Travel Market, which went virtual after pandemic restrictions in Dubai. 

“I think probably by the year 2022/23, 2023/24 we will see things coming back to some degree of normality and Emirates will be operating its network as it was and hopefully as successfully as it was,” he said in the webcast interview.

His interview came less than 24 hours after his airline announced it plans to cut jobs due to the COVID-19 pandemic, but had not given numbers.

Emirates issued a statement yesterday saying: “We have looked at all of the possible scenarios in order to maintain our business operations, but have come to the conclusion that unfortunately we have to say goodbye to some of the wonderful people who have worked for us.”

Emirates employs more than 100,000 people and operates a fleet of 270 wide-body aircraft. In March it confirmed salaries would be cut between 25 and 50 per cent after the fleet was grounded.

“The current pandemic has impacted many industries around the world,” said Emirates in its release.

Emirates had already said on May 10 that it would take at least 18 months for travel demand to return to “a semblance of normalcy”, even after reporting windfall profits before the pandemic.

The carrier had suspended flights on March 22 before resuming certain services two weeks later.

Last week, it began operating scheduled, but partial, services to a number of airports, mostly European

The International Air Transport Association (IATA) forecast in April that air traffic in the Middle East and North Africa (Mena) will fall by more than half this year.

 
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Final list of speakers revealed for the future of travel & tourism Middle East conference

Industry News 29th May, 2020

This week HE Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce, has confirmed his attendance at a conference considering the future of travel and tourism in the Middle East.

The event – part of Arabian Travel Market’s three-days of webinars and conferences – will discuss sustainable investment measures for the region’s travel & tourism sector alongside strategies to restore travellers’ confidence and move forward post-pandemic.

He will talk about his vision for Dubai’s success alongside leaders from across the region:

Panel Discussion: Initiatives to revive the travel and tourism industry and secure sustainable investment in the region?

Moderator: Rajan Datar, Presenter and Broadcaster BBC

Speakers

  • HE Marwan Bin Jassim Al Sarkal, Executive Chairman Sharjah Investment and Development Authority
  • His Excellency Khalid Jasim Al Midfa, Chairman, Sharjah Commerce and Tourism Development Authority (SCTDA)
  • HE Saleh Al Gezeiry, Director General for Ajman Tourism
  • Mr. Majed M. Alghanim Tourism & Quality of Life Managing Director, Ministry of Investment, Saudi Arabia 
  • Mr. Nicolas Mayer, PWC Industry Leader Hospitality and Tourism EMEA & Managing Partner Global Center of Excellence Tourism & Hospitality

This is one of three sessions on the day and you can be part of the event with free registration.

Restructuring to Attract Sustainable Investment and Customers in the New World Order.

Register HERE

READ MORE ABOUT OUR CONFERENCE HERE

READ MORE ABOUT Arabian Travel Market’s Virtual Programme 1 – 3 June , 2020 HERE

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Dubai tourism leaders meet key stakeholders to plan for the future

Industry News: 26th May 2020

ABU DHABI, 25th May 2020 (WAM): Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) held a virtual meeting with key aviation and hospitality partners to discuss current and post-pandemic strategies and joint initiatives aimed at ensuring the tourism industry’s gradual return to normalcy.

The meeting also discussed global efforts to minimise the transmission of COVID-19 and precautionary measures deployed to safeguard the health of communities across the UAE.

On the same day the UAE Government announced that the number of COVID-19 tests has broken the two million mark, reaching 2,044,493 screenings as part of the national plan to intensify coronavirus detection. Three deaths on Sunday due to COVID-19 complications, took the total number of deaths to 248, and 601 individuals have fully recovered from the virus, bringing the total number of recoveries to 15,657. There are 14,402 patients from different nationalities are currently receiving the necessary treatment.

Attendees the meeting hosted by the Director General of Dubai Tourism, included key executives of hospitality groups including Jumeirah, Emaar Hospitality Group, Marriott International, Millennium, Accor, JA Resorts and Hotels, Kerzner International, Al Habtoor Group, Wasl and Rotana, in addition to aviation sector players like Emirates, Flydubai and Dubai International Airport.

The report released by state newsagency WAM said partners were briefed on the phased approach being adopted to reopen the tourism sector in Dubai, and the marketing communications and activities in progress across key markets to reinforce Dubai’s high global profile including the ongoing #TillWeMeetAgain digital activation.

With the hospitality sector being a key pillar of Dubai’s economy, the discussions between Dubai Tourism and partners focused on the steps being taken to pave the way for the reopening of hotels and other tourism facilities across the city, while ensuring adherence to the strictest guidelines and providing opportunities to revive domestic market demand.

As part of overall efforts to create a positive perception and a conducive environment aimed at instilling confidence among travellers who plan to visit Dubai, the meeting also looked at precautionary measures that have been implemented, both at a citywide level and across specific sectors including tourism, which represent critical touchpoints for visitors and residents during their stay.

One of the key priorities from a marketing perspective, the meeting heard, is to emphasise the safety and security that Dubai provides, and the clear stringent health and safety protocols issued by the Dubai Health Authority based on international standards and best practices aimed at containing the contagion. The meeting also discussed the mechanism to ensure adherence to the guidelines, practical solutions to scan and monitor passengers at Dubai International Airport and the effective management of contact tracing in compliance with privacy standards, following the resumption of air travel.

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All participants at the meeting expressed their appreciation for the way in which government – both at the Dubai and UAE level – have dealt with the threat of COVID-19 including the rational policy decisions that have allowed robust management of the health crisis and mitigation of the economic repercussions by allowing for the gradual reopening of vital sectors like tourism.

Industry executives at the meeting also agreed that the postponement of Expo 2020 was prudent and well-received. It provides the opportunity to hold the event in a more normalised global environment where all countries can actively participate, making it a more representative Expo for the world in 2021. The businesses also reiterated their support to Dubai Tourism to kick-start the sector with collaborative development of promotional programmes and strong customised packages that take into account the current realities of the global market. The stakeholders were unanimous that there was positive sentiment surrounding Dubai as a key destination in the international circuit thanks to the city’s world class health infrastructure, and protocols and processes deployed during the management of this pandemic.

Helal Saeed Almarri, Director General, Dubai Tourism, said: “It must be emphasised that the health and safety of our residents and guests will always remain our top priority as we continue to work with the industry and our government partners not just during this critical period but beyond, to develop innovative approaches, real-time responses, and proactive yet prudent initiatives to ensure that Dubai remains at the forefront of the world’s leading destinations in line with our strategy.

“As we look ahead to a gradual reopening of tourism, we will focus on the key elements that have ensured the industry’s success over the past decade – creating unique value and delivering an uncompromised guest experience. To achieve this, we rely on the solidarity of our stakeholders who have always played a pivotal role. We hope they will continue to lead from the front in positioning Dubai as a must-visit destination.”

Paul Griffiths, CEO of Dubai Airports, said: “Dubai International Airport is prepared to welcome visitors as soon as airports around the word start reopening and pave the way for a phased resumption of air services. As health and hygiene standards will play an influential role in encouraging people to travel, we have put in place a set of health and safety protocols at our airports including all necessary quarantine arrangements and the implementation of sanitisation and disinfection measures to reassure tourists that Dubai is one of the safest destinations to visit. We will also continue to receive incoming flights from select destinations, operate cargo flights, as well as flights to repatriate expatriates and guests to their home destinations.”

Adnan Kazim, Chief Commercial Officer at Emirates Airline, said: “The health and safety of our customers and employees remain our top priorities across our operations, and Emirates has implemented comprehensive measures at every step of the customer journey. This includes thermal temperature scanning before check-in, the mandatory use of masks and gloves for everyone at the airport, protective suits for our crew and ground employees, physical distancing protocols, modified services to reduce contact, enhanced cleaning of all our touch points, and much more.”

Ghaith Al Ghaith, CEO of flydubai, said: “Since the flight restrictions came into effect, we have operated more than 100 repatriation flights to 19 different countries enabling 14,000 citizens to return home. flydubai will continue to work closely with its strategic partners to ensure that all safety measures are in place in line with international standards when flight restrictions are lifted.”

Mohammed Al Habtoor, Vice Chairman and CEO, Al Habtoor Group, said: “Dubai with its wide experience in successfully dealing with challenging situations is capable of restoring tourism momentum and paving the way for the hospitality sector to returns to its previous state. This is also a view shared by our international hospitality partners who have placed great faith in Dubai’s resilience during tough times, as well as in its world-class healthcare system and the range of preventive measures taken across the city such as the effective and regular sanitisation and sterilisation programmes, that will help highlight Dubai as one of the world’s safest destinations.”

Mark Willis, CEO Middle East and Africa at Accor, praised the government’s efforts in reopening the markets and supporting the tourism sector: “Accor is committed to coordinating with Dubai Tourism and all related entities, from both government and private sectors, to ensure we are aligned in making the safety and well-being of our guests and team members our key priority”

Neal Jones, Chief Sales & Marketing Officer, Europe, Middle East and Africa (EMEA), Marriott International, said: “As an international chain that enjoys a longstanding relationship with Dubai, Marriott is committed to supporting the industry’s efforts to regain momentum by rolling out our own initiatives and packages to attract visitors to Dubai when the time is safe for travel.”

 

 

Hard hit Dubai hotels prepare for September recovery

Industry News: 21st May 2020

About 30 per cent of jobs in Dubai’s hotel industry are likely to be lost over the summer until demand recovers from the pandemic, according to research firm STR.

In an updated Bloomberg report today (May 21, 2020) the news outlet said more than a third of the city’s 120,000 hotel rooms will ‘probably remain closed through the typically slow summer months’.

Bloomberg spoke with Philip Wooller, Middle East and Africa director at STR Global. The industry employs about 40,000 people, he estimated.

The job-loss estimate is a “minimum,” Wooller said. “Otherwise you’re asking the owners to reach into their own pockets and, while some might do that, others won’t be able to afford it.”

Almost 17 million tourists visited the city last year, contributing about 12 per cent to economic output.

Hotel occupancy slumped to 23 per cent since the pandemic hit from about 80 per cent one of the highest in the world, according to STR. Average occupancy globally is around 20 per cent and has been mostly held up by demand for accommodation for medical staff and quarantines.

“Dubai’s Hospitality businesses are resuming operations based on issued government reopening guidelines during this pandemic,” the emirate’s media office said in a tweet. “Dubai’s hotel sector is healthy and this prudent approach prepares the industry for an even stronger resurgence post Covid.”

Occupancy is expected to recover to between 50 and 60 per cent by September as demand improves and hotels reopen, Wooller said. Some operators, especially beach hotels, may see demand from residents unable to travel abroad seeking local vacations instead.

Bloomberg reported that closures have hit most hotels in the rest of the Gulf, with nearly 43 per cent of rooms in the Omani capital being shuttered. In Mecca, more than 80 per cent of rooms were closed as the city that hosts Islam’s holiest site, which had the worst outbreak in Saudi Arabia.

Some hotel owners in Qatar are benefiting from the government leasing nearly 30 properties. Qatar, which is set to host the soccer World Cup in 2022, is still benefiting from demand as infrastructure preparation continues. In Dubai’s Emirati neighbour, Abu Dhabi says just 17 per cent of the city’s 29,000 rooms closed. Occupancy is hovering around 50 per cent as the government leases rooms for essential staff and for quarantines, according to STR Global.

READ FULL UPDATED BLOOMBERG NEWS REPORT HERE

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Air France dumps the A380 superjumbo and Emirates wants out of new orders

French flag carrier Air France has announced on Wednesday afternoon that it will retire its nine strong Airbus A380 fleet with immediate effect.

The airline’s fleet of superjumbos was initially set to be retired in 2022, but in light of the Coronavirus, the Air France-KLM Group has decided that it will bring this forward.

The company owns five of its A380s and another four on lease. Most of the fleet has been grounded since March, as the worldwide pandemic brought air travel to a dramatic stop.

Air France said in a statement: “The phase-out of Airbus A380 fleet fits in the Air France-KLM Group fleet simplification strategy of making the fleet more competitive, by continuing its transformation with more modern, high-performance aircraft with a significantly reduced environmental footprint.”

The airline received its first A380 in October 2009 and it’s most recent delivery was in June 2014, making the youngest aircraft in the fleet a mere six years old. Air France’s Airbus A380 fleet will be replaced by smaller long-haul aircraft, including Airbus A350 and Boeing 787 Dreamliner, the carrier says.

The £164million superjumbo is close to the end of its production run after demand switched to smaller jets, and airlines including Air France have been idling the double-decker temporarily because of the coronavirus crisis. 

Air France announced a fresh 500million euro ($548.50million, £449million) writedown as it permanently retires its nine jets, just over a decade after becoming the first European airline to operate them.

The French announcement came hours after aircraft engine maker Rolls-Royce announced 9,000 redundancies across its UK operations.

Emirates – which operates more than 100 A380s and has been one of the few airlines to adopt it – no longer wants to take all eight A380s due to the pandemic and is in talks with Airbus, industry sources said.

Bloomberg earlier reported that Emirates hoped to cancel five.

Both Emirates and Airbus said they were in regular dialogue with each other, declining further comment.

Halting Emirates deliveries could be painful for both sides, with the airline foregoing deposits and Airbus left with parts already ordered and no significant market to dispose of them.

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