Abu Dhabi forecasts rapid growth in cruise tourism

The Arabian Gulf emirate of Abu Dhabi is eyeing a 59% growth in cruise passenger arrivals in the 2009/2010 season. Forecasts by the Abu Dhabi Tourism Authority (ADTA), which manages and the emirate's tourism industry and promotes the destination, point to some 199,113 arrivals in the season, which will run from the end of November to the beginning of May, compared to a passenger arrivals total of 125,200 last season. 'The forecast is based on the 100% occupancy level achieved by the cruise ships using Abu Dhabi as a 'port of call' last season,' explained Ahmed Hussein, Deputy Director General, ADTA. 'The increase is due to the inclusion of Abu Dhabi in Royal Caribbean International's weekly itinerary for its 'Brilliance of the Seas,' which has a passenger capacity of 2,501 and the fact that Costa Cruises is to boost its service to the UAE capital by introducing larger, brand new vessels with increased passenger capacity.'

Due to sail into Abu Dhabi next season are the 1,266 passenger capacity 'Aida Vida' of Germany's Aida Cruises, and the recently commissioned 'Costa Deliziosa' and 'Costa Luminosa', both of which have a 2,828 passenger capacity in addition to Royal Caribbean's 'Brilliance of the Seas.' ADTA is planning to set up a hospitality tent to welcome the passengers as they disembark from the ships for day visits to the emirate. Meanwhile, ADTA has commissioned a market study into the UAE capital's cruise potential. 'We are looking to establish the viability of Abu Dhabi as a home port for cruise vessels as opposed to its current status as a port-of-call,' explained Ahmed Hussein. 'We also want to better gauge whether we have future potential beyond the European fly-and-cruise market which we are currently serving. 'Cruise business delivers much greater economic impact to the destination and also provides it with an excellent opportunity to market itself to an influential audience which would be open to return visits.

Hotel cancellations decrease in Gulf

The rate at which hotels are being cancelled or delayed has slowed considerably in recent months. According to research by TRI Hospitality Consulting, during the second quarter of 2009 only 3% of confirmed pipeline hotel keys in the GCC have been put on hold or cancelled, compared to 28% in the period from Q3 2008 to Q1 2009. Furthermore, only 10% of confirmed pipeline hotel keys have been subject to delays over six months, or subject to further delays, since the opening dates recorded as at Q1 2009. This is in comparison to the 33% from Q3 2008 to Q1 2009. In the past nine months the projections for total room supply across the GCC in 2010 have dropped by 24,000 keys, due to cancellations and delays. Total supply in 2010 is now estimated at 327,355 keys, this is equivalent to a 6.8% reduction in total room supply expected by 2010, compared to projections in Q3 2008.

American Airlines and Etihad Airways announce codeshare

American Airlines and Etihad Airways, the national airline of the United Arab Emirates (UAE), have announced a new codeshare agreement which will pave the way for closer commercial cooperation between the two airlines (subject to government approval). The codeshare agreement will further extend each partner airlines' global network and offer customers a smoother, more convenient travel experience when travelling between the United States and the UAE. Under the new arrangement, American Airlines will place its 'AA' code on services operated by Etihad Airways between New York (JFK), Chicago (ORD), Paris (CDG), Dublin, Frankfurt, Manchester and Milan (MXP) to and from Abu Dhabi. Etihad Airways will place its 'EY' code on a number of trans-Atlantic services operated by American between the United States and Europe, plus flights between New York (JFK) and Washington (DCA), Los Angeles and San Francisco as well as flights between Chicago (ORD) and Washington (DCA), Los Angeles, San Francisco, and Houston (IAH).

"We're very pleased to be working with Etihad, which, in a relatively short period of time, has established itself as one of the world's leading airlines and a major force in the Middle East," said Gerard Arpey, American's Chairman and CEO. "Our new codeshare agreement will give customers of American and Etihad increased choice, convenience and flexibility in their travel between North and South America, the Middle East and beyond." "The United States represents a key market for Etihad and one in which we are keen to grow further, both through the addition of new routes of our own, such as Chicago, and through close cooperation with other well-established airlines, such as American Airlines," said Etihad Airways Chief Executive James Hogan. "American Airlines is one of the world's largest and most-respected airlines, and we see this codeshare agreement very much as the start of a deepening strategic relationship, which both airlines are committed to developing further in the future."

Subject to regulatory approval, the new codeshare agreement is expected to coincide with the launch by Etihad of its new service to Chicago at the beginning of September. Once the codeshare agreement is in effect, customers transferring between the two carriers can purchase a single ticket for their journey and enjoy the convenience of being able to check their luggage to their ultimate destination. American Airlines currently operates trans-Atlantic services from New York to Barcelona, Brussels, Milan, London, Paris, Rome and Zurich; Chicago to Brussels, Dublin, Frankfurt, London, Manchester, Moscow, Delhi, Paris and Rome; Miami to London, Madrid and Paris; Dallas/Fort Worth to London, Madrid, Frankfurt and Paris; Los Angeles and Raleigh/Durham to London.Etihad Airways currently operates to two destinations in North America: New York (JFK) and Toronto, Canada. The airline will begin service to Chicago on Sept. 2. The route will be served initially three times a week and will increase to daily service on Oct. 1.

Royal Caribbean to cruise from Dubai in 2010

Royal Caribbean has announced plans to create a hub in Dubai beginning in 2010 for week-long winter sailing that will tour five major destinations in the Gulf. The cruise operator views the Gulf as a major growth area for its business, and statistics for cruise traffic in Dubai bear that out. According to Dubai's Department of Tourism and Commerce Marketing, the emirate witnessed a 65% year-on-year increase in cruise traffic in 2008, and is forecasting 316,000 passengers this year, a growth of 58% on last year. At present Dubai's cruise industry is primarily served by European-based operator Costa Crociere, which began offering winter cruises in the Gulf three years ago. Now with two ships serving the region under its Costa Cruises brand, and one under its AIDA Cruises brand, Costa Crociere brought 105,000 tourists to Dubai in the 2007-08 winter season, and the figure is projected to rise to 178,000 during the 2008-09 season.

Royal Caribbean plans to deploy one ship in the Gulf - The Brilliance of the Seas - which has a capacity of up to 2,500 passengers. The operator is projecting that it will serve 32,000 cruise tourists in its upcoming four-month winter season that is scheduled to begin in January 2010. Each seven-day cruise will begin in Dubai, then over the course of its journey it will stop in Muscat, Fujairah, Abu Dhabi, and Bahrain, before returning to Dubai, said Helen Beck, the regional sales director at Royal Caribbean. Prices will begin at about $700-$800 per person, which includes food, entertainment and activities. Guests will have to pay extra for alcoholic drinks, spa treatments, and excursions. Beck says the price of a cruise is good value for money compared to land-based stays, which is one factor that is helping the industry cope with the financial crisis. 'We as an industry are probably outpacing other ones in getting through this difficult year. We like to refer to ourselves not as recession proof, but recession resilient,' she said.

Like other companies in the tourism industry, Royal Caribbean has had to adjust its rates to attract business. 'We are filling our ships, but not always at the revenues we would want. We manage pricing on a yield management basis, so when the demand is there to increase rates we will. But it's one of those years where everything is changing a little bit. The rule book has gone out the window,' she said. One of the challenges the cruise industry faces is a stereotypical belief - dating back to the days of the QE2 - that taking a cruise is expensive, boring, and offers nothing else to do but eat. 'We have worked really hard to show that is not what a cruise is,' Beck said. 'A cruise is about choice. There is so much to do. If you want to be active, you can climb our rock walls or run around our jogging track. People are getting that message now.'

Asked about the rise of piracy in the Gulf of Aden and how it might impact Royal Caribbean's operations in the Gulf, Beck said the company has beefed up security and is monitoring the situation closely. 'A few guests have been asking how we will handle it. We have a department that is responsible for handling the safety of our guests and crew, and the man who runs it used to be the number three person in the FBI,' she said. For the most part, the route of The Brilliance of the Seas will avoid the current trouble spots. 'If you pick up the cruise in Dubai you will be nowhere near that part of the world [where the piracy is]. The furthest you would be is Muscat, and the pirates haven't been anywhere near there. 'Are we concerned? Yes, quite rightly as any company in our business would be. Are we comfortable we are doing everything we can? Yes. And will we take any further action if we feel we need to? Absolutely,' she said.