The Middle East's cruise sector is lagging behind global competitors as it seeks to navigate the challenging waters of the Red Sea crisis, but industry experts said the region still has major potential for growth.
Major cruise operators have adjusted itineraries or cancelled voyages amid attacks by Yemen's Houthi rebels on commercial vessels in the key shipping route.
Dave Goodger, managing director of EMEA Tourism Economics, an Oxford Economics company, said deployment to the Red Sea is down on last year and occupancy is a bit lower, but that the industry was “very resilient”.
“There is this perception of risk and [tourism is] driven by perceptions,” Mr Goodger said during a panel discussion at the Arabian Travel Market exhibition in Dubai, which ends on Thursday.
People in the region need to be more aware that they can cruise in our own backyard. They don't need to fly six hours to the Med or 15 hours to the Caribbean
Saud Hareb Almheiri
“When there are adverse effects, people tend to stay away, but travellers come back.
“There is an impact today, but that's not to say it'll impact the industry tomorrow.”
'We are very confident'
While cruise travel is outpacing wider demand for international travel around the world, with the exception of Asia, the Middle East's recovery is slower, according to Tourism Economics's latest report.
Whereas cruise occupancy is at 111 per cent in the Caribbean, for example, and 107 per cent in the Mediterranean, it's at 90 per cent in the Middle East and Africa, it found.
The longer-run potential is clear for the region, however, once safe passage through the Suez Canal is possible, the report added.
Turky Kari, executive director of marketing and corporate communications at Saudi Arabia's Aroya Cruises, said once its first ship sets sail in December, it will go through the Red Sea.
“We are very confident and all Red Sea authorities and the Saudi government support this 100 per cent,” he said.
Aroya comes under the management of Saudi Arabia's Public Investment Fund’s cruise company, Cruise Saudi. It plans to launch three cruise ships within 10 years, as well as add seven new ports by 2030 and reach 1.3 million passengers per year.
Its first cruises will last three nights, departing from Jeddah and then spending a day at sea followed by a private island along the Red Sea coast. A seven-night cruise will follow in January, taking in Jeddah, Ain Sokhna and Sharm El Sheikh in Egypt, and Aqaba, Jordan. Aroya also has plans to cruise across the Gulf and the Mediterranean.
A stronger GCC cruise sector
The potential within the region's cruise sector is “huge”, said Saud Hareb Almheiri, cruise tourism and yachting lead at Dubai Department of Economy and Tourism. “But people in the region need to be more aware that they can cruise in our own backyard. They don't need to fly six hours to the Med or 15 hours to the Caribbean.”
This is why Cruise Arabian Alliance was set up in March, to foster co-operation in the region as the countries work together to maintain service levels and educate the market.
“We're strong, but we're stronger together,” said Mr Almheiri.
Lakshmi Durai, chief executive of Middle East cruise agency CruiseExplore, said the more cruise liners there are in the region, the better for the sector. “One cruise line is not competitive to another cruise line,” she said. “There is a huge number of people who take land vacations every year from here. Instead of a staycation, why not a cruisecation?
“Cruises are very easy to sell. They're all inclusive, it's one vacation to see multiple locations, there are no flight costs. Cruising in the Gulf is a fantastic winter vacation.”
Partnerships and packages are key
Opportunities extend beyond regular holidays, added Mr Kari, who said Cruise Saudi is also looking at developing wedding packages.
Mr Almheiri believes events at sea is another area for growth. “The awareness is not there at the moment, but I believe strongly it'll happen in the near future,” he said. “Holding events at sea will be something different, maybe for smaller cruise ships rather than the larger ships.”
International cruise liners have also shown interest in extending the season through the summer, added Mr Almheiri.
Mr Goodger's findings showed greater demand for longer cruises, but also strong demand for shorter cruises. “The key is to offer a lot of different packages to cater to different ways people can travel,” he said.
“People also spend a night in a destination before or after they cruise, so land tourism can complement, destination benefits can support the port destination by having that infrastructure.”
Partnerships are key, agreed Mr Almheiri. “There has been more happening in this ecosystem in the past year and a half spurred by demand and raised interest,” he said.
This includes Emirates' new two-year partnership with MSC Cruises, which allows passengers to book fly-cruise holiday packages that include return flights from 21 airports across Europe and South America. The agreement was made on Wednesday at Arabian Travel Market.
Ultimately, the future of the industry is bright, Mr Goodger said. “There are two words I use in general when focusing on travel as a whole, with a lot of economic disruptions, and that's cautious optimism,” he said. “But when talking about cruising, it's optimism.”
Green ambitions
- Trees: 1,500 to be planted, replacing 300 felled ones, with veteran oaks protected
- Lake: Brown's centrepiece to be cleaned of silt that makes it as shallow as 2.5cm
- Biodiversity: Bat cave to be added and habitats designed for kingfishers and little grebes
- Flood risk: Longer grass, deeper lake, restored ponds and absorbent paths all meant to siphon off water
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The protective shell is covered in solar panels to make use of light and produce energy. This will drastically reduce energy loss.
More than 80 per cent of the energy consumed by the French pavilion will be produced by the sun.
The architecture will control light sources to provide a highly insulated and airtight building.
The forecourt is protected from the sun and the plants will refresh the inner spaces.
A micro water treatment plant will recycle used water to supply the irrigation for the plants and to flush the toilets. This will reduce the pavilion’s need for fresh water by 30 per cent.
Energy-saving equipment will be used for all lighting and projections.
Beyond its use for the expo, the pavilion will be easy to dismantle and reuse the material.
Some elements of the metal frame can be prefabricated in a factory.
From architects to sound technicians and construction companies, a group of experts from 10 companies have created the pavilion.
Work will begin in May; the first stone will be laid in Dubai in the second quarter of 2019.
Construction of the pavilion will take 17 months from May 2019 to September 2020.
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Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
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Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
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The biog
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Favourite travel destination: Greece, a blend of ancient history and captivating nature. It always has given me a sense of joy, endless possibilities, positive energy and wonderful people that make you feel at home.
Favourite pastime: travelling and experiencing different cultures across the globe.
Favourite quote: “In the future, there will be no female leaders. There will just be leaders” - Sheryl Sandberg, COO of Facebook.
Favourite Movie: Mona Lisa Smile
Favourite Author: Kahlil Gibran
Favourite Artist: Meryl Streep
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Prop idols
Girls full-contact rugby may be in its infancy in the Middle East, but there are already a number of role models for players to look up to.
Sophie Shams (Dubai Exiles mini, England sevens international)
An Emirati student who is blazing a trail in rugby. She first learnt the game at Dubai Exiles and captained her JESS Primary school team. After going to study geophysics at university in the UK, she scored a sensational try in a cup final at Twickenham. She has played for England sevens, and is now contracted to top Premiership club Saracens.
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Seren Gough-Walters (Sharjah Wanderers mini, Wales rugby league international)
Few players anywhere will have taken a more circuitous route to playing rugby on Sky Sports. Gough-Walters was born in Al Wasl Hospital in Dubai, raised in Sharjah, did not take up rugby seriously till she was 15, has a master’s in global governance and ethics, and once worked as an immigration officer at the British Embassy in Abu Dhabi. In the summer of 2021 she played for Wales against England in rugby league, in a match that was broadcast live on TV.
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Erin King (Dubai Hurricanes mini, Ireland sevens international)
Aged five, Australia-born King went to Dubai Hurricanes training at The Sevens with her brothers. She immediately struck up a deep affection for rugby. She returned to the city at the end of last year to play at the Dubai Rugby Sevens in the colours of Ireland in the Women’s World Series tournament on Pitch 1.
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Yadoo’s House Restaurant & Cafe
For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.
Golden Dallah
For the cappuccino, luqaimat and aseeda.
Al Mrzab Restaurant
For the shrimp murabian and Kuwaiti options including Kuwaiti machboos with kebab and spicy sauce.
Al Derwaza
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Essentials
The flights
Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours.
The package
Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.
No Shame
Lily Allen
(Parlophone)
