Middle East holds great promise but issues must be tackled The Middle East market holds great promise as a source of visitors and hoteliers from Singapore are stepping up efforts to bolster their Middle Eastern business as evident by their presence at the recent Arabian Travel Market (ATM) in Dubai. However challenges remain – competition from regional countries, visa issues and new flight patterns could put the squeeze on what could be a lucrative market for Singapore, they say. Singapore was present at the 13th edition of the Arabian Travel Market with the Singapore Tourism Board (STB) heading a delegation of 27 industry partners comprising 12 travel agents, 12 hotels, and 3 attractions. The expanded contingent signalled a strong interest in the emerging Middle Eastern market. The Arabian Travel Market 2006 - the 13th in the annual series of the Middle East's premier travel and tourism event - attracted a record number of trade buyers from 99 countries to the Dubai World Trade Centre - with total numbers up 10% on last year's figures to reach an all-time high of nearly 11,674. Mr Alan Tan, Area Director of STB’s Middle Eastern office said the event succeeded in strengthening the awareness of Singapore as a destination, particularly crucial as a build-up to the peak summer travel season. Theresa Choo, Director of Marketing of Conrad Centennial, who was at ATM, said that the Middle East market was a promising one with her hotel starting to see more guests from various Middle Eastern countries. “The consumers are widely travelled, more discerning and sophisticated in their choice of destinations and hotels. Singapore used to be a very popular destination, especially when Singapore Airlines had online services to many Middle East cities, including Bahrain. Choo said Bahrain was a good gateway for the Eastern Saudi Arabian market, which was fast becoming a major source of outbound travellers. Patrick Fiat, General Manager of the Royal Plaza on Scotts, said that there was a trend towards longer “stay & eat” patterns in hotels in Singapore “as the travellers are uncertain about the outside food, whether they are halal or not, so the trend of half board is already notable”. He said there was opportunity for Singapore to increase its share of the Middle Eastern market because the strong Euro had made popular destinations in Europe more expensive while visa issues continue to put a lid on traffic from the Middle East. “Asia is a good alternative choice and Singapore is a must-go destination,” he said. On what else could be done to grow the market, Choo said that while the STB has done a great job in promoting the country “as a leading leisure destination to visit and also a premier international business and MICE hub”, she urged for more flight frequencies between Singapore and the region’s cities. “Singapore Airlines has now opened new destination links such as to Abu Dhabi. There should be more consumer-related promotions as to what Singapore can offer as a destination. Eventually, it is the consumer’s choice.” Fiat said, “It is now a FIT (Free Independent Travel)/leisure and seasonal market. Promotional rates (Dynamic Packaging) with air and accommodation with longer stays targeting families – ie suites and/or connecting rooms, halal food restaurants – will be ideal for this market. The growth in bookings is notable but the numbers are still not huge.” He also recommended that suppliers interested in the market have websites in the Arabic language. Both Fiat and Choo also see Dubai emerging as a serious competitor to Singapore. Said Fiat, “It is evident that their biggest markets are the UK and Germany. As a result, our market share has shrunk and they have the ability to charge from US$250 to US$300, with very high occupancies throughout the year. “The development of new hotels and themed cities in Dubai is like inventing a destination. Also, the Emirates Airlines’ new Airbus 380 will create a new market pull for them.” Choo said, “Dubai is fast catching up with the rest of the world in many aspects such as technology advancement and world-class attractions and even premier international hotels are starting to establish their presence. In addition, their aggressive consumer-related initiatives and promotions focusing on their cultures, cuisine and attractions have made Dubai a very interesting destination to visit and to watch out for in the coming years.”