Top 2010 global travel trends

Euromonitor International unveiled its 2010 Global Travel Trends report at World Travel Market last month, identifying seven key emerging travel trends. Read on to find out what’s in store for the world of travel

1.  UK: Invasion of Middle East Investors

Many of London’s most iconic hotels could be snapped up by Middle East investors in the coming years, as a weak pound and favourable taxation makes the UK an attractive market for investment.

The pound’s current weakness against the US dollar, coupled with the fact that Middle Eastern organisations are exempt from paying Stamp Duty and Capital Gains Tax, means that Middle East investors are predicted to flood into London.

Following the recent sale of Harrods to the Qatari royal family for US $2.4 billion – luxury British brands such as Claridge’s, Grosvenor House and the Savoy are all up for grabs.

London is seeking to position itself as a new ‘luxury hotspot’ enticing Middle East cash, as domestic demand has hit rock bottom thanks to the impact and aftermath of the recession.

In 2009, Middle East visitors spent $1.3billion in the UK, and 2010 is expected to see a substantial increase in numbers.
Caroline Bremner, head of global travel and tourism research, Euromonitor International said: “The UK is ripe for investment from the Middle East with attractive property prices and the value of the pound. We anticipate visitors from Saudi Arabia and the United Arab Emirates to the UK to increase significantly in the next four years.”

With Middle East investors predicted to snap up London hotels, the UK can expect to see more travellers from the region as hotels cater increasingly to their cultural and religious demands; and sharia compliant and non-alcohol hotels could be increasingly more common in London in the future.

The stand out Middle East trend is the resurgence of travel into Iraq. The country hosted a stand at this year’s WTM for the first time in ten years, in a bid to move away from its war-torn image and reposition itself as a tourism destination aimed at cultural and religious visitors.

With the end of the conflict, the country is experiencing a tourism revival alongside a business boom boasting $230 billion of projects .

Historically, religious tourism was the main driver of tourism in Iraq. Landmarks such as the city of Najaf are famous destinations for Shia pilgrims. Around 1.3 million tourists visited in 2009, with religious tourism accounting for 75%, mainly from Iran. In Kurdistan, the Ministry of Tourism has grown to more than 500 employees.

Gulf investors are piling into Iraq, driving up business tourism by 58% in 2009. Rotana is opening its first hotel in Iraq in Erbil this year, with additional expansion plans for its Arjaan and Centro brands. Rotana in Baghdad is scheduled for 2012. Millennium and Copthorne is also planning two Copthorne hotels in Kurdistan. Travel agencies are also seeking to capitalise on the boom — Sharaf Travel set up shop there early this year.

Flydubai launched new routes to Erbil this year and more low cost carriers are expected. Looking ahead, by 2014, 700 hotels are forecast to operate in Iraq — a number that will increase in line with security. The Iraqi Ministry of Tourism has also announced mega-projects such as the $1 billion Wasit Tourism City.

Following a catastrophic 2009, the travel industry in the North America began to see signs of recovery in 2010 as returning business travellers increased demand. The recovery is expected to gain momentum in 2011 as demand growth outpaces supply and most catagories regain pricing power. Deprivation holidays are the new trend for business executives who, amongst others, want to push their bodies to the extreme. Aiming at improving their health and balance, consumers enrol in boot camp-style spa resorts or extreme trekking, instead of spending their free time relaxing.

This trend will lead to the flourishing of destination spas and camps. The trend is likely to become a strong niche globally, aimed at stressed out travellers, driven by consumer concerns about rising health costs and obesity. Growing interest in fitness is expected to develop philanthropic and green attributes as consumers want to improve themselves, others and the environment.

4.  Europe: Mobile travel apps

European travel and tourism is expected to record a weak performance in 2010 due to the global economic crisis and competition from other regions. The ability of European travel operators to develop new products and embrace new technologies will play an important role in the future of the travel industry. After the success of the iPhone, smartphones are revolutionising the travel industry. Smartphone penetration is expected to reach 92% in Europe by 2014 with mobile phone devices set to overtake PCs as the most common web access device worldwide.

The growing importance of mobile is leading to a shift in power from technology players such as search engine Google to smartphone manufacturers and developers. According to Euromonitor International, 50% of European travellers will use a smartphone to find travel information and make reservations by 2015. Opportunities for travel operators with websites optimised for mobile phone search are huge.

5.  Africa: Space Tourism

Astronomy and space tourism are taking off in Africa as South Africa develops world-class space technology and becomes a major hub for astronomy. South Africa boasts the Southern Africa Large Telescope (SALT), Meerkat research facility. Visitors to the telescope now exceed 13,000 per year.

Astro-tourism attracts all age groups, ranging from independent travellers and families to amateur and professional astronomers.

Opportunities for astro-tourism are huge as 50% of the world’s population can no longer see the stars so few places in the world remain where people can enjoy the skies pollution free. Tour and wildlife guides can be trained in basic astronomy and telescopes can be placed in hotels and observation sites. By quantifying light pollution levels, it will be possible to map out the best places to promote astro-tourism in Africa, creating demand for destinations with areas suited to observe clear night skies.

In Latin America there is a move towards promoting interior tourism, going beyond the usual sun and sea hot spots, to showcase ‘off-the-beaten track destinations’. Despite suffering from poor infrastructure and a lack tourism services, Latin America has countless unexplored areas and the move inwards will enable hotels, airlines and travel retailers to sell new destinations and improve undeveloped infrastructure. Saskia Lima, general coordinator or Tourism Segmentation, Ministry of Tourism, Brazil said: “Brazil has far more to offer than just sun and beach products. The ‘Regionalisation of Tourism’ programme is the key to tourism expansion by introducing tourists to new products and destinations.”

7.  Asia: The Fragrance Factor

Asia is leading the world out of the economic downturn. Arrivals are predicted to top pre-downturn levels by 2011, aided by pro-active government tourism initiatives. The Asian travel market is taking scent-branding by storm, in order to offer guests a unique experience. Examples of hotels embracing ‘scent delivery’ technology include the Scent Hotel in Koh Samui, Thailand which transformed from its origins as a scent market stall into a boutique hotel with fragrance at its core.

Shangri-La has customised its own branded scent ‘Essence of Shangri-La’. Fragrance and air care sales in Asia are predicted to increase in value to $3 billion and $1.5 billion respectively. Customisation is the king with different scents for different hotels, while finding the right balance between natural aromas and manufactured scents will be a key challenge for travel players, such as hoteliers, airlines and tourism boards.