REPORT-HONG KONG-PATA TRAVEL MART 2006: Middle East travel and tourism is expected to generate US$147.6 billion worth of economic activity (total demand) in 2006, growing to US$279.4 billion by 2016. Of this, the…
REPORT-HONG KONG-PATA TRAVEL MART 2006: Middle East travel and tourism is expected to generate US$147.6 billion worth of economic activity (total demand) in 2006, growing to US$279.4 billion by 2016. Of this, the outbound market is estimated to be worth US$42 billion in 2006 growing to almost US$93 billion in 10 years.
Participants in the PATA Travel Mart 2006 Middle East Outbound luncheon workshop learned this at AsiaWorld-Expo in Hong Kong.
Dubai-based Pacific Asia Travel Association (PATA) Director-Gulf Region Ms Nicki Page and Asian Overland Services Tours & Travel Group Managing Director Mr Anthony Wong were panellists. PATA Director-Strategic Intelligence Centre Mr John Koldowski moderated the interactive session.
Mr Wong offered tips for developing and sustaining profitable partnerships with Arab tourism operators. According to Mr Wong, the majority of tour operators in the Middle East, especially the wholesalers, are familiar with the international business environment. “The UAE, in particular, has an open business style,” he added.
However, personal relationships and word-of-mouth are keys to dealing with Arab operators. “If your company is new in the Middle East market, it is better if someone else facilitates introductions,” said Mr Wong. “This will make the market entry process easier.”
Mr Wong warns against rushing into business agreements. “Bear in mind that transactions tend to take longer in the Middle East, so do not let this create a problem between you and your business partner,” he said. “Try to find out the operator’s needs. Do not spend time explaining your products; provide only what your business partner is looking for.”
“When a good business relationship is established, Arab operators will rely on you more than you expected,” said Mr Wong. “Their demands are very high, therefore, avoid open-ended commitments. Just promise what you can provide.”
Mr Wong said the key to sustaining profitable partnerships with Arab operators was to visit them frequently and call them on a weekly basis. “Arabs have a long oral tradition, they prefer verbal conversation,” he added. “Avoid overloading your business partner with written data.”
The Gulf Region is a large and growing source of travellers to Asia Pacific. Arrivals to Asia have grown at an average rate of 12% a year since 2001. For Asia Pacific as a whole, arrivals growth from the Gulf has been a solid 4% per annum over the same period.
Airlines are also recognising the huge two-way growth potential between the Gulf and Asia Pacific, with scheduled seat capacity rising from around 276,000 per week in 2000 to 430,000 per week in 2006.
“During summer, June to September, the climate of the Middle East is hot and dry,” said Mr Wong. “It is an ideal time for Arab tourists to visit Asia Pacific.”
Ms Nicki Page said Saudi Arabia and the UAE were the two biggest outbound markets in the Middle East both in volume and per capita terms. “Saudi and UAE consumers travel more often and in bigger groups, stay longer and spend more than any others in the Middle East and most other travellers globally,” she said.
Arab Travellers` likes and dislikes by Anthony Wong
- Arabs spend an average of three weeks on holiday
- Arabs are high-end clients. Do not recommend budget services
- Arab travellers do not like to mix with other Arabs while on holiday
- Arab families prefer apartments and connecting rooms
- Arabs travellers prefer rooms with sea views
- Arab travellers demand that breakfast be included with accommodation
- Many Arabs do not like oily or spicy food. They like seafood
- Arab travellers prefer to talk to the boss if they have a demand or complaint
- Arabs love shopping, especially for branded clothes and electrical items
- Arab travellers prefer private tours
- Arab travellers prefer top-of-the-range vehicles
- Arabs like waterfalls, beaches, lakes and other water-based attractions
- Arab women use private or women-only swimming pools
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
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