Asian travellers no longer regard the UAE as just a transit stop or business travel location, enticed by an expansion in its mid-market hotel supply as well as new offerings. TTG Asia reports

The Middle East is seeing Asian travel markets grow in importance as destinations in the UAE, Qatar and Oman increasingly establish themselves as leisure spots.

“Asian travellers into the (Middle East) continue to increase year-on-year, with particularly strong interest from India and China,” said Rustom Vickers, vice-president for development, Dusit International.

Dusit’s expansion into the Middle East is driven by “the solid dynamics of the regional hotel industry, coupled with a young and increasingly affluent population that will support growth over the long term,” Vickers added.

Thirayuth Chirathivat, CEO of Centara Hotels & Resorts, added that the region’s draw lies partially in its geography.

“This ‘middle ground’ between east and west with hundreds of millions of potential customers within a very acceptable flying time (will) be a continued magnet,” he commented.

Malaysian outbound agents selling the Middle East said interest has steadily risen for Dubai and Abu Dhabi as holiday destinations over the last five years due to the growing number of attractions.

They sell tours combining Abu Dhabi and Dubai, and the main attractions include shopping, desert safaris and city tours featuring the architecture and iconic buildings such as Burj Al Arab Jumeirah and Burj Khalifa.

Karan Anand, relationships head at India’s Cox & Kings, agreed: “Abu Dhabi, Dubai and Qatar are no longer only transit destinations as they are visited by leisure tourists in large numbers.

“The emirates have become an amalgamation of varied activities and experiences, thus breaking the stereotype of them being mostly visited for corporate trips,” he said, pointing to existing attractions like underwater aquariums in Dubai, kitesurfing and scuba diving in Qatar, falcon shows in Ras-Al-Khaimah and Islamic art in Abu Dhabi.

As well, theme parks such as Ferrari World Abu Dhabi and Bollywood Parks Dubai (opening in October) have captured interest from Indian travellers, outbound travel chiefs told TTG Asia.

Similarly for the Japanese market, “unique architecture and entertaining theme parks in Dubai and Abu Dhabi have really caught the eye of Japanese tourists”, according to Yoshio Mogi, president of Trans Global Tour.

Mogi said: “The Middle East has done a lot to improve its stereotypical image of being a ‘desert’, which has enabled it to reach out to new target markets.”

Natsumi Suzuki, sales executive at Destination Consultants, shared that some Japanese clients are requesting transits in the hub cities of Dubai, Doha and Abu Dhabi for sightseeing. “With so many hotels and new attractions opening there each year, visitors can see something new every time they go.”

Australia’s Intrepid Travel, which specialises in small group adventure travel, also sees Dubai as a rising star. Said destination manager for the Middle East and Turkey, Daniella van Haltren: “Our Dubai stopover has been the real surprise this year with growing sales, particularly for solo female travellers. Travellers are booking this trip as a standalone destination, reinforcing our belief that there’s more to Dubai than meets the eye.”

And as Dubai gears up to host the 2020 World Expo with more tourism-related infrastructure, agents are expecting that this high-profile event will garner greater worldwide interest for the city.

Greater affordability is another factor driving demand for holidays in the UAE.

Kerry Tam, general manager at Malaysia’s Parlo Tours, said the growing number of three- and four-star hotels has made the UAE more affordable, improving from five years ago when budget accommodation was scarcer.

Desmond Lee, group managing director of Apple Vacations & Conventions, added that regular promotions by Emirates and Etihad Airways have also made the destination more affordable to many middle-class Malaysians.

India is also enjoying greater airlift to Abu Dhabi and Dubai, in part due to “major airline alliance offering seamless connectivity from tier-one and -two Indian cities,” remarked Anand.

However, outbound agents in Singapore and Hong Kong do not see the same enthusiasm for the Middle East as a leisure travel destination.

“(Our most requested Middle Eastern destinations – Turkey, Egypt, Israel and Dubai) wax and wane in popularity among leisure travellers as security concerns remain one of the main factors determining travel demand to these destinations,” said Jane Chang, head of marketing communications at Singapore’s Chan Brothers Travel.

Dynasty Travel Singapore’s managing director, Clifford Neo, added: “Currently, the Middle East serves only as stopover to the European cities or Africa for leisure travellers. There are also some FITs and MICE groups to Dubai mainly, and some corporate MICE groups to Abu Dhabi.”

Neither is there much growth in the Hong Kong market to the Middle East, noted Charming Holidays, general manager, David Chau, due to “political factors and proximity to Egypt and Turkey”.

A spokesperson for Dubai’s Department of Tourism and Commerce Marketing said a promotional campaign is underway in key Asian markets to encourage inbound tourism. In January 2016, Dubai Tourism also signed strategic partnerships with China’s Union Pay and Tuniu.

Sharjah Tourism’s campaigns and roadshows in China and India have reaped dividends, according to a spokesperson from the NTO.

In 1Q2016, over 71,000 visitors from Asia visited Sharjah and contributed to a 16 per cent hike in Asian guest numbers for the emirate’s hotels.

Hotels like Shangri-La Dubai are also pitching in the efforts to court Asian feeder markets, with strategic activities including agent fam trips planned in several Asian countries in the coming months, the hotel’s director of sales and marketing Dharmendra Sharma revealed.

Reporting by Rohit Kaul, S Puvaneswary, Julian Ryall, Paige Lee Pei Qi, Rebecca Elliot, Feizal Samath and Prudence Lui

This article was first published in TTG Asia September 2016 issue. To read more, please view our digital edition or click here to subscribe.

Freed from the baggage of sanctions, Iran is coming onto the radar of curious travellers but faces the uphill task of attracting mainstream tourists, finds TTG Asia

After economic sanctions on Iran were lifted in January 2016, tour operators are seeing pent-up demand among intrepid travellers for the once-isolated country, although opinions are split whether the destination will see greater footfall from Asia in the near future.

Yoshio Mogi, president of Trans Global Tour Japan, opined that the recent move is casting Iran in a more positive light as a destination steeped in history, culture and world heritage sites.

Among growth signs is AirAsia X relaunching thrice-weekly flights to Tehran from Kuala Lumpur since June, opening up new destinations for Malaysian outbound tour operators.

Said Kerry Tam, general manager of Parlo Tours, which will begin group tours to Tehran in 4Q2016: “We are targeting young people between the ages of 25 and 40 looking for exotic destinations. Iran is a new destination for Malaysia, and we think demand will be for full-board tours.”

Safuan Travel & Holidays is also looking to start full-board group tours to Iran in October, according to general manager Azizi Borhan.

Down Under, the buzz for Iran among Australian agencies is more palpable.

Louisa Virgato, product manager at  Abercrombie & Kent Australia, said: “Iran is one of the hottest emerging destinations and has become so popular that most tourism services are fully booked in the country for the peak travel period between September and November this year.

“In terms of sales, Iran is our strongest performing destination in 1H2016, with 28 per cent more bookings than the same time last year,” added Virgato.

Daniella van Haltren, destination manager for Middle East and Turkey for Australia’s Intrepid Group, noted: “Iran definitely appeals, especially to more experienced travellers who have been there, done that and are looking for the next exciting destination to explore.

“In the last 12 months we have seen sales on Intrepid Travel’s Iran Adventure trip more than double and we have had to create extra departures to match the demand,” she elaborated.

Elsewhere in Asia, demand for Iran is sizeable but limited to niche segments.

Hong Kong’s Blue Sky Travel, managing director, Angela Ng, told TTG Asia: “Clients are mostly sophisticated travellers who have travelled around the world and can afford this kind of trip. As it’s difficult to reach the minimum capacity for group tour departures, some clients come to me for tailor-made FIT programmes.”

Although Destination Consultants in Japan has been arranging visits to Iran for the past six years, sales executive Natsumi Suzuki has not seen a significant uptick in the number of Japanese visitors wanting to visit Iran as they are still concerned about US visa restrictions on people who have visited Iran.

There appears to be little change in demand from Singapore as well, with Vivian Yeo, director, content marketing at Quotient TravelPlanner, stating: “Our clients in general do not have much appetite for Iran and we have not observed any change with the lifting of sanctions.”

Despite its potential, there are still lingering concerns of Iran as an unsafe destination, travel chiefs pointed out.

Mayflower Acme Tours deputy general manager, channel management, Abdul Rahman Mohamed, urged: “The Iranian NTO has to work hard to change negative perception about the country that it is unsafe. In order to do this, it has to work with outbound tour operators and the media to organise fam trips.”

Rajji Rai, chairman, Uniglobe Swiftravels India, added: “It will take time and marketing efforts to project Iran as a destination in the minds of leisure tourists.”

Reporting by Rohit Kaul, S Puvaneswary, Julian Ryall, Paige Lee Pei Qi, Rebecca Elliot, Feizal Samath and Prudence Lui

This article was first published in TTG Asia September 2016 issue. To read more, please view our digital edition or click here to subscribe.

In marketing to the Muslim traveler, companies should be mindful of the differences between Islamic travel markets. Travels motivated by spiritual reasons – such as the Hajj and Umrah, pilgrimages in Pakistan, Iran or Israel – are different from pure holidays that are not motivated by religious reasons.

With pilgrimages (especially Hajj), many of the elements (e.g. access to the site, rituals, time) are regulated. Whereas for holidays, tourists usually travel for cooler climates – such as when the Ramadan falls in summer and Gulf families want to escape very hot temperatures – or they might travel to discover new countries like Korea and Japan.

Cedomir Nestorovic

While the motivations for these tourists may differ, travel sellers need not customize their marketing strategies too specifically. The elements for a traveler on a pilgrimage are quite fixed, so there is little capacity for travel sellers to innovate.

On the other hand, holiday-makers who choose to visit a particular city (e.g. Paris, Tokyo, or Singapore) expect to discover new things unique to that place. The experience needs to be different, otherwise, they would not have chosen to travel all the way there. Having said that, a certain amount of adaptation for halal meals and prayer facilities will be appreciated, and this can be easily arranged with practically any hotel.

Before committing to any form of investment, travel sellers should first identify the traveler profile they are targeting, because travelers come from countries with diverse backgrounds. These travelers may differ in several aspects, including purchasing power, cultural and social codes, religious teachings, and even political and legal conditions.

When it comes to purchasing power, an affluent customer who holds a strict observance of the Shariah likely has certain expectations of his accommodations, and a hotel operator would have to compute the trade-off.

Would a 5-star hotel segregate swimming pools and gyms, remove the mini bar from the rooms, restrict access to some floors, and close the night club? The compensation must be huge because a decision like that impacts not just the economic value, but also the reputation of the hotel. This is especially true if the property is part of an international chain, and the hotel has to respect the rules of the entire chain.

Separately, when it comes to the cultural differentiation and religious teachings, it is clear that a person from a Hanbali school of thought and Shafi/Hanefi school of thought will not require the same level of compliance with the Shariah. Companies looking to attract these travelers then may not have to make as many adjustments.

One of the most common pitfalls that travel sellers commit is to believe that Muslim consumers are all very rich, and that they ask for full compliance with the Shariah. If a hotel wants to cater only to this clientele, then it should consider transforming into a halal hotel.

In reality, Muslim travels do not justify the transformation of a hotel, because there would be insufficient number of guests and nights to sustain a complete transformation. It would be more feasible for a hotel to aim to be halal-friendly, where minimal changes are introduced to cater to Muslim travelers, yet not drive away the majority of non-Muslim consumers.

Nestorovic is the director, executive MBA Asia-Pacific at ESSEC Business School and the author of Islamic Marketing – Understanding the Socio-Economic, Cultural, and Politico-Legal Environment.

Contributed by Cedomir Nestorovic