LATEST ECONOMIC BRIEFINGS
EMIRATES: DUBAI | 30.07.2010
Dubai’s capital markets appear to be in for significant change with plans unveiled to establish a second-tier stock exchange coming hot on the heels of Dubai Financial Market (DFM) – the government-administered domestic bourse – and the DIFC-based NASDAQ Dubai’s move to formally link their trading platforms. All of this is happening as speculation of a merger between the bourses of Dubai and Abu Dhabi mounts.
ALGERIE | 30.07.2010
Les efforts importants déployés par l’Algérie pour augmenter la production céréalière commencent à porter leurs fruits, dans la mesure où les récoltes record de l’année dernière et les rendements importants de 2010 aideront à réduire les coûts d’importation et à créer des emplois sûrs dans les zones rurales. Cependant, l’objectif de l’autonomie alimentaire fixé par le pays reste encore bien éloigné.
SENEGAL | 30.07.2010
Le Sénégal est en train de devenir un leader en matière de développement de l’énergie solaire comme énergie de l’avenir, et ce, à la fois à l’échelle nationale et continentale. Pour y parvenir, le pays veut augmenter l’utilisation des énergies renouvelables afin de surmonter ses propres manques et promouvoir un grand programme international ayant pour but de mettre fin à la dépendance de l’Afrique de l’Ouest à l’égard des combustibles fossiles.
BULGARIA | 30.07.2010
Though Bulgaria’s economy is likely to remain in the slow lane for the rest of this year, the country’s banking sector continues to show resilience in the face of global economic contraction. There are concerns, however, that increasing levels of bad loans carried by some lenders could add to pressures on the sector.
OMAN | 28.07.2010
A raft of new agreements recently signed by the Ministry of Transport and Communications will see a significant round of investment in Oman’s transport infrastructure. The 15 agreements, signed earlier in July, cover projects in land, sea and air infrastructure and are worth a total of OR136.9m ($355.9m).
COUNTRY COVERAGE
Changing Tourism Trends
Kuwait, Volume 164
29.07.2009
29.07.2009
Although Kuwait's tourism sector is expected to have a slow year in 2009, with the global recession cutting into visitor numbers and reducing returns, this could be offset to some degree by more Kuwaitis holidaying at home.
Kuwaiti media has reported that more locals and expatiates are choosing to stay in the country, rather than travel abroad or return home during the hot summer months. Though this trend may not benefit the accommodation sector of the tourism industry, it will help to keep the tills ringing at Kuwait's cafes, restaurants and entertainment facilities.
This is supported by a recent report by the UN World Tourism Organisation (UNWTO), which said that the global economic downturn and the threat posed by swine flu could actually be to the benefit of the region's tourism industry.
According to the results of a WTO study issued on July 21, there could be a 2 to 6% increase in tourism in the Middle East as Gulf holidaymakers decide to stay at home or take their summer breaks within the region to save on costs and avoid exposure to the H1N1 virus.
Such a boost would be much needed, with the UNWTO reporting in early July that there had been an 18% drop in tourist arrivals in the Middle East in the first four months of the year, while a World Travel and Tourism Council (WTTC) study also had mixed news for the Kuwaiti tourism sector.
In its latest report on Kuwait, the WTTC predicted that while the sector's contribution to the country's economy would decline from an estimated 3.7% of GDP in 2009 to 3% in 2019, its actual monetary contribution would more than double, from $5.6bn this year to $12bn in a decade.
While long-term revenue prospects are good, the WTTC report foresees a slump in earnings this year, with real GDP growth for the travel and tourism economy expected to be -11.1% in 2009, while averaging 0.9% per annum over the next 10 years.
Perhaps worrying for Kuwaiti officials are WTTC's expectations that direct and indirect employment in the travel and tourism sector will fall from 71,000 jobs in 2009, which represents 3.5% of total employment or one in every 28.3 jobs, to 65,000 jobs, 2.6% of total employment or one in every 37.9 jobs by 2019. The global average for employment in the travel and tourism industry is at 7.6%.
Added to this is the council's prediction that direct employment in the tourism sector will fall by 10% this year, dropping to 13,000 and recording further shrinkage by 2019, when there will only be 8800 positions available.
Though having invested heavily in tourism infrastructure and actively encouraged private sector involvement, Kuwait faces considerable competition in its efforts to become a regional power in the tourism industry.
Dubai has set itself a target of attracting 15m overseas arrivals annually by 2015, an objective it is aiming to achieve through massive investments in hotels and resorts, along with conference centres to draw in the meetings, incentives, conferences and exhibitions (MICE) segment.
Bahrain has also set its sights on becoming a major MICE hub, greatly expanding its conference and business meeting facilities; Oman promotes itself heavily as an adventure and nature holiday destination, offering trekking and safari tours; while further afield Arab states such as Jordan and Syria are enticing greater numbers of tourists from the region and beyond with a mix of history and luxury.
Kuwait does have its own niche however, in its appeal as a wholesome family holiday destination, with the country promoting attractions such as the largest water park in the Gulf region; Entertainment City, one of the longest established and best theme parks in the Middle East, located to the north of Kuwait City; and Al Shaab Leisure Park to the south of the capital, a project of the United Entertainment and Tourism Company (UETC).
According to Adel Hassan Omoor, the chairman and managing director of UETC, this is a specialist market that should be exploited.
"Kuwait will never be a tourist destination in comparison to the likes of Dubai, but there is great potential for business tourism and a strong domestic demand for amusement and leisure activities," he told OBG. "The amusement and leisure market is severely undersupplied and combined with strong local demand there are many opportunities for new forms of entertainment facilities."
UETC is grasping that opportunity, opening THE 99 Village theme park at Jahra in late March, inspired by the comic characters created by Dr Naif Al Mutawa, the head of the Teshkeel Media Group. The park is unique in that, unlike similar parks, it is framed around Muslim superheroes from the comic series, which have story lines based on the universal values inherent in Islam.
Speaking at the opening of the park, Al Mutawa said THE 99 Village, the first of many planned, provided entertainment while delivering an important message.
"We want everyone to experience our positive message about tolerance, teamwork and respect that appears in every story of THE 99," he said. "THE 99 theme parks will provide a safe and fun environment for families to be entertained and educated by characters drawn from their culture and values."
Having been one of the first Gulf states to introduce theme parks and the family travel concept to its tourism repertoire, Kuwait again appears to be breaking new ground. With the help of homegrown heroes, it could overcome the short-term slowdown in the sector and the longer-term challenges of its rivals.
Kuwaiti media has reported that more locals and expatiates are choosing to stay in the country, rather than travel abroad or return home during the hot summer months. Though this trend may not benefit the accommodation sector of the tourism industry, it will help to keep the tills ringing at Kuwait's cafes, restaurants and entertainment facilities.
This is supported by a recent report by the UN World Tourism Organisation (UNWTO), which said that the global economic downturn and the threat posed by swine flu could actually be to the benefit of the region's tourism industry.
According to the results of a WTO study issued on July 21, there could be a 2 to 6% increase in tourism in the Middle East as Gulf holidaymakers decide to stay at home or take their summer breaks within the region to save on costs and avoid exposure to the H1N1 virus.
Such a boost would be much needed, with the UNWTO reporting in early July that there had been an 18% drop in tourist arrivals in the Middle East in the first four months of the year, while a World Travel and Tourism Council (WTTC) study also had mixed news for the Kuwaiti tourism sector.
In its latest report on Kuwait, the WTTC predicted that while the sector's contribution to the country's economy would decline from an estimated 3.7% of GDP in 2009 to 3% in 2019, its actual monetary contribution would more than double, from $5.6bn this year to $12bn in a decade.
While long-term revenue prospects are good, the WTTC report foresees a slump in earnings this year, with real GDP growth for the travel and tourism economy expected to be -11.1% in 2009, while averaging 0.9% per annum over the next 10 years.
Perhaps worrying for Kuwaiti officials are WTTC's expectations that direct and indirect employment in the travel and tourism sector will fall from 71,000 jobs in 2009, which represents 3.5% of total employment or one in every 28.3 jobs, to 65,000 jobs, 2.6% of total employment or one in every 37.9 jobs by 2019. The global average for employment in the travel and tourism industry is at 7.6%.
Added to this is the council's prediction that direct employment in the tourism sector will fall by 10% this year, dropping to 13,000 and recording further shrinkage by 2019, when there will only be 8800 positions available.
Though having invested heavily in tourism infrastructure and actively encouraged private sector involvement, Kuwait faces considerable competition in its efforts to become a regional power in the tourism industry.
Dubai has set itself a target of attracting 15m overseas arrivals annually by 2015, an objective it is aiming to achieve through massive investments in hotels and resorts, along with conference centres to draw in the meetings, incentives, conferences and exhibitions (MICE) segment.
Bahrain has also set its sights on becoming a major MICE hub, greatly expanding its conference and business meeting facilities; Oman promotes itself heavily as an adventure and nature holiday destination, offering trekking and safari tours; while further afield Arab states such as Jordan and Syria are enticing greater numbers of tourists from the region and beyond with a mix of history and luxury.
Kuwait does have its own niche however, in its appeal as a wholesome family holiday destination, with the country promoting attractions such as the largest water park in the Gulf region; Entertainment City, one of the longest established and best theme parks in the Middle East, located to the north of Kuwait City; and Al Shaab Leisure Park to the south of the capital, a project of the United Entertainment and Tourism Company (UETC).
According to Adel Hassan Omoor, the chairman and managing director of UETC, this is a specialist market that should be exploited.
"Kuwait will never be a tourist destination in comparison to the likes of Dubai, but there is great potential for business tourism and a strong domestic demand for amusement and leisure activities," he told OBG. "The amusement and leisure market is severely undersupplied and combined with strong local demand there are many opportunities for new forms of entertainment facilities."
UETC is grasping that opportunity, opening THE 99 Village theme park at Jahra in late March, inspired by the comic characters created by Dr Naif Al Mutawa, the head of the Teshkeel Media Group. The park is unique in that, unlike similar parks, it is framed around Muslim superheroes from the comic series, which have story lines based on the universal values inherent in Islam.
Speaking at the opening of the park, Al Mutawa said THE 99 Village, the first of many planned, provided entertainment while delivering an important message.
"We want everyone to experience our positive message about tolerance, teamwork and respect that appears in every story of THE 99," he said. "THE 99 theme parks will provide a safe and fun environment for families to be entertained and educated by characters drawn from their culture and values."
Having been one of the first Gulf states to introduce theme parks and the family travel concept to its tourism repertoire, Kuwait again appears to be breaking new ground. With the help of homegrown heroes, it could overcome the short-term slowdown in the sector and the longer-term challenges of its rivals.
