UAE braces for surge in business travel

(MENAFN- Khaleej Times) Hotels across the UAE reported a drop in business travellers in 2016, in line with global trends, however 2017 is proving to be a far better year for the segment, experts have said.

David Scowsill, president and CEO of the World travel & tourism Council (WTTC), said that travel and tourism generates $7.6 trillion in GDP and supports over 292 million jobs. "Business travel is a vital part of the sector, and it is a key catalyst for global growth. It drives the relationships, investments, supply chains and logistics that support international trade flows."

According to a new report by Travelport and the WTTC, the $1.2 trillion (Dh4.4 trillion) business travel market is set to grow 3.7 per cent annually over the next decade, with the fastest growth to be witnessed in emerging markets.

Rakhee Lalvani, associate vice-president of public relations at Taj Hotels, noted that the group has been seeing a large influx of business travellers at their hotel in Business Bay.

"This is because Dubai is a hub for many different visitor demographics, including business travellers," she said.

"Our Taj hotel in Business Bay has been open for over two years now, and we have two more hotels in the pipeline. These will be located at the Palm and at Jumeirah Lakes Towers. Both these hotels will cater to business and leisure travellers."

Highlighting how the brand caters to the business travellers segment, she said: "We offer a lot of facilities that go into ensuring that business travellers are looked after and their needs are met. These include their technology needs, F & B options, and entertainment options, in addition to our core services. We believe in service from the heart and this sets us apart in the market."

James Britchford, vice-president of sales and marketing, India, Middle East and Africa regions at InterContinental Hotels Group, said that the group had witnessed a pick up in the first quarter of the year in terms of business travellers, particularly in Dubai.

"The biggest growth that we have seen has been from China, India, and Africa," he said. "From China, we have seen a growth of 24 per cent in the first quarter of 2017, compared to the same period in 2016. This is a mix of both business and leisure travellers. India has also had some very good growth."

"While we have a number of hotels in our portfolio that are known for offering corporate options, we are increasingly seeing business travellers mixing some leisure into their time," he added. "Many visitors will invariably extend their trip to see some of the local attractions."

Britchford also noted that the Meetings, Incentives, Conferences and Exhibitions (Mice) segment was a bit soft in 2016, however he expects it to come back very strongly in 2017.

"The Mice segment has a huge effect on our business, so we are looking forward to that segment recovering," he said. "Moving forward, our focus will be on catering to business travellers from the key source markets. We have taken steps to ensure that our hotels are 'China-ready' in that they provide Chinese-speaking staff, offer Chinese F & B options, and have Chinese newspapers on demand. We are watching the India market very closely as well, and of course the Europe market is a key feeder market for us."

The Dubai World Trade Centre (DWTC), the most popular venue for events and exhibitions in the UAE, also noted an increase in its Mice segment for 2016. Through 2016, DWTC's Dubai International Convention and Exhibition Centre venue hosted 298 Mice and business events, including over 100 mega-events, delivering a record 3.03 million attendees, delegates and visitors to these events reflecting double digit year-on-year increase over 2015 traffic.

With international participants growing four per cent each across the number of visitors and the number of exhibiting companies, the DWTC's venue welcomed over 1.05 million foreign business travellers to Dubai last year, representing a strong 45 per cent of its overall mega-event participant volumes.

"As we look ahead through 2017 and beyond, we have embarked on a holistic series of strategic initiatives aimed at driving future growth and innovation to establish DWTC as the global innovation leader for the Mice sector, integrating its core business operations and services, and setting new benchmarks to deliver exceptional visitor experiences," said Helal Saeed Almarri, CEO of the DWTC.

Over 35,526 foreign exhibiting companies from 185 countries participated at events in DWTC accounting for nearly 70 per cent of the total exhibitor base, further contributing to the rise in Mice contribution to business tourism volumes and consequently driving up the wider economic impact generated for Dubai.

Tareq Daoud, regional vice-president of sales at Hyatt, also spoke about how the number of business travellers to the UAE has been increasing over the past 15 years.

"The oil prices have affected the business travellers demographic, just like any other demographic; but starting from the first quarter of 2017, we have seen an increase in the demands of the business travellers segment for conference and meeting facilities," he said.

Like many experts, he noted that business travellers require certain amenities that are different from other visitor demographics. "One thing that we have done to ensure a more comfortable experience for them is to provide free Wi-Fi at the Grand Hyatt, which regularly houses a number of annual conferences and events."

He also revealed that the brand is open to customisations to better serve the needs of the demographic.

"The line between leisure and business travellers is blurring, especially in a city such as Dubai which has a lot to offer," he added. "Many business travellers will take the time to explore various attractions across the city after they have completed their business duties. We have seen that business travellers take an average of three to five days for both business and leisure. With the expansion of the UAE's leisure activities such as the new theme parks and specialty entertainment venues, we expect the average number of days spent for both business and leisure to increase to five to seven days."

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Rohma Sadaqat I am a reporter and sub-editor on the Business desk at Khaleej Times. I mainly cover and write articles on the UAE's retail, hospitality, travel, and tourism sectors.Originally from Lahore, I have been living in the UAE for more than 20 years. I graduated with a BA in Mass Communication, with a concentration in Journalism, and a double minor in History and International Studies from the American University of Sharjah.If you see me out and about on assignment in Dubai, feel free to stop me, say hello, and we can chat about the latest kitten videos on YouTube.

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