Kanoo forecasts sharp rise in Gulf travel

UAE. Policy deregulation to ease the movement of tourists could spearhead the growth in the Gulf’s tourism industry, according to Mishal Hamed Kanoo, vice-chairman of Kanoo Group, the region’s largest travel management organisation.

As a result, Arab nationals and expatriate residents will show increasing interest in the Gulf as a destination, he said.

“Travel to North America has become a burden to all Arabs and non-Arabs in the region after September 11 and the recent Iraq war. Currency fluctuations and the strengthening of the euro make travel to Europe an expensive exercise,” said Kanoo in an interview with Gulf News.

“However, the Iraq and Palestine issues are still affecting travel in the region. Most North American travellers do not realise the geographic distance between Palestine and Dubai. They think we are in the war zone.”

Kanoo said the travel and tourism sector is ready for a major boost.

Two new carriers have emerged in the UAE within the span of a fortnight. The no-frills carrier, Air Arabia, began operations from Sharjah, while Abu Dhabi launched its own airline, Etihad Airways.

Earlier, Abu Dhabi launched Royal Jet, while Emirates airline ordered 71 planes involving a whopping US$19 billion investment last June. Gulf Air has hinted at leasing more aircraft next year to expand operations. Qatar Airways ordered 32 Airbuses at a cost of over US$5 billion in June.

All these developments, Kanoo said, indicate a possible massive rise in travel demand, fuelled by intra-Arab tourism.

Mishal Kanoo said that the Gulf had been more affected by SARS and the Iraq war than September 11. “The region has been very quick in regaining travellers’ confidence,” he said. “Things have become normal as early as June this year. In the long-term, the region’s travel and tourism sector has tremendous potential, to be fuelled by a growth in regional traffic.”

Note: Kanoo’s statements are good news for the region’s duty free industry which gathers for the annual MEDFA conference in early December in Dubai.

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