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AFRICA'S AIRLINES

A comprehensive look

HOTEL GROUPS
IN AFRICA
No slowing down

KLM
Brings their new Dreamliner to Africa
ISSUE 105: July 2016 www.businesstravellerafrica.co.za
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18 Contents

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59 34
58
16 KLM
KLM Royal Dutch Airlines took delivery of its first
Boeing 787-9 Dreamliner in November 2015, which
it put into operation on its Amsterdam-Abu Dhabi-
Bahrain route. This particular aircraft is six metres
longer than the 787-8 and has capacity for up to 20%
more passengers and 23% more cargo. But best
of all, KLM is sending its latest Dreamliner to Africa.
South Africa to be exact. Business class passengers
can look forward to full-flat seats, more privacy and
direct aisle access throughout the cabin.

FEATURES REGULARS

18 African Aviation
Intra-Africa air travel is growing, with the
04 Message from the Team 58 Tried and Tested
Whats the editor ranting about now? Hotel Check
continents growing middle class playing City Lodge Bloemfontein
its part in ensuring Africas airlines keep
pace with the developments made in 06 News Airline, hotel and other travel news
Flight Check
Air France
product and new routes. But African
aviation also has its challenges and
much still needs to be done before the
from Africa and beyond
60 Q & A Interviews
continent can properly leverage the
influence air travel has on growth.
12 ASATA Column
The latest from Chief Executive Officer
George Argyropoulos Cruises
International
Axel Hauser Moevenpick
Otto de Vries
34 Hotel Groups 62 People on the Move
The development landscape doesnt
appear to be affected by the slowdown
13 Amadeus Column
A word from Amadeus Vice-President
The movers and shakers
what theyre up to now
in some of Africas biggest economies,
64 Bite with the Editor
for Africa Paul de Villiers
with the worlds hotel groups still
seduced by the growth potential and
the relatively untapped and underserved
hotel market on the continent, with a
14 W Hospitality Column
Managing Director Trevor Ward gives
Themba Mthombeni
Duma Travel
host of new openings due to be unveiled us his take on the West African hotel
in the coming years. industry

Visit businesstravellerafrica.co.za JULY2016 | 3


EDS LETTER

B
loemfonteins taxi drivers are in for a rude
awakening. PUBLISHER
Richard Lendrum
Thats when Uber finally gets its act together
and takes up a position in South Africas judicial EDITOR
capital. Dylan Rogers
Its understandable that the American online dylan@thefuture.co.za
transportation network has so far focused on the
JOURNALIST
bigger centres in South Africa, with Uber currently Kate Kennedy
enjoying a presence in Johannesburg, Durban, Cape
Town and Port Elizabeth. But phase two of its CONTRIBUTORS
rollout in South Africa is going to prove interesting. Richard Holmes, Kate Kennedy
Now, the folk in Bloemfontein will probably be a MEDIA SOLUTIONS CONSULTANT
little miffed that their compatriots in PE beat them Pierre Grobler
to the punch, but when Uber finally arrives in the +27 82 900 4026
city, they will realise the full benefit. pierre@thefuture.co.za
Thats because Bloemfonteins taxi drivers are
DESIGN AND LAYOUT
currently charging way over the odds and it seems Nadette Voogd
obvious that Uber is going to provide a more cost-
effective solution to those looking to Uber for their SUBSCRIPTIONS AND PRODUCTION
transport around Bloemfontein. Mabel Ramafoko
mabel@thefuture.co.za
Obviously, business travellers sit directly in that
market segment. SOUTH AFRICAN OFFICE
I was such a traveller in Bloemfontein recently and Postal Address:
was shocked at some of the taxi costs I incurred over PO Box 1746, Saxonwold, 2132
a relatively short distance in the city. Physical Address:
No 1 Cecil Road, Cnr Glenhove, Rosebank
Firstly, a 13-kilometre trip from Bram Fischer Telephone: +27 11 268 6430
International Airport on arrival cost me R180 ($12). I
then had the interesting experience of being charged NIGERIAN OFFICE
R50 ($3.3) for a trip of a couple of kilometres 3rd Floor, EuniBrown House195,
Ikorodu Road, Palmgrove,Lagos, Nigeria
between the conference I was attending and my hotel Tel: +234 1 740 3236
for the night and then seeing the same trip cost me Mobile: +234 803 963 0155
R200 ($13) the very next morning!
Its probably not surprising to you that I engaged PUBLISHER NORTH & WEST AFRICA
in some serious haggling with the latter operator, Tope Ogbeni-Awe
tope.ogbeni-awe@topcommng.com
despite him telling me that the minimum cost of a
trip in town was R100 ($6.5). He also attempted to EDITORIAL ASSISTANT
distinguish between the previous evenings taxi and Mohammed Abdullahi
his shuttle. It didnt make a difference to me. The
vehicles in question were very similar and performed
exactly the same service, getting me from A to B.
All of which tells me that Bloemfonteins taxi
drivers, owners and operators are in for a bit of a
fright when Uber finally lands in the city.
That being said, the people in question may just
see an opportunity to partner with Uber, and how
that plays out in the taxi industry will also be rather
revealing. Uber, no doubt, will be primed, having
already experienced difficulty in establishing itself in
Johannesburg and Cape Town.
All that business travellers and their employers
want are options and to be charged a fair rate for a
service that forms an integral part of business travel.
The sharing economy has opened up this market Business Traveller Africa is published under licence from Perry
segment to a whole new way of doing things, and Publications Limited.
cities such as Bloemfontein are sure to feel the full Warwick House, 25 Buckingham Palace Road, London, SW1W 0PP.
effect of this in the future. C Tel: +44 20 7821 2740
www.businesstraveller.com

G
FUTURE GROUP

Dylan Rogers
Editor

G
dylan@thefuture.co.za Follow us on:

FUTURE GROUP

4 | JULY2016 Visit businesstravellerafrica.co.za


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NEWS

First Protea Hotel in


Botswana
Protea Hotels has signed an agreement for the
development of its first hotel in Botswana. Protea's
new property, scheduled to open in early 2018, will
be located in Gaborone, strategically positioned in
the new CBD of the city where there are a number
of recently-developed corporate head offices,
government offices and various retail facilities. The
hotel will offer 160 rooms of various sizes and types,
and will also feature substantial conference, meeting
and event facilities. The large ballroom, designed
for versatile use, can be converted into four meeting
rooms, giving the hotel the ability to host up to eight
meetings at any time four in the ballroom and four
in the other meeting rooms that are planned. Other
facilities include a business centre, bar, restaurant,
fitness centre and outdoor pool.

Amadeus Launches
New Version of
CheckMyTrip Air Seychelles New Website
Amadeus has released a new version of
CheckMyTrip, an itinerary management tool for Features
travellers which is available for desktop, mobile, Air Seychelles has introduced new web services, following the
IOS and Android. Based on user feedback, the new implementation of the Sabre technolog y platform. Guests departing
and enhanced app offers travellers the possibility from Mah International Airport and Praslin Airport can check
to see additional information about their flight, in and print their boarding passes online up to 24 hours prior to
including booking class, booking status, aircraft, departure. Guests are required to bring their printed boarding
meal available on board, and baggage allowance passes to the airport before the normal closure of check-in desks.
per passenger. Minor bugs that users reported Guests with only carry-on luggage can proceed straight to passport
on the previous version of CheckMyTrip, such and security control, bypassing the check-in counters. Passengers
as Facebook login and PIN code issues, have who have baggage will be able to use a special baggage drop-
also been resolved. The minimum software off counter at the airport to check in their belongings up to 45
requirements for the app are 4.4+ for Android, minutes before departure of international flights. The airline has
and iOS 9+ for Apple users. Travellers who have also amended its baggage policy. Business class passengers are now
downloaded the app will receive an upgrade allowed 64 kilograms of checked luggage, and economy passengers
notification directly from their app store. 46 kilograms.

Carlson Rezidor Announces


First Hotel in Durban
Rezidor will open its first property in Durban in the next few
years. The Radisson Blu Hotel, Durban Umhlanga will feature
207 rooms and is expected to welcome its first guests in 2019. The
hotel is designed as an urban resort within the Oceans Umhlanga
development a 90,000m 2 high-end complex which will also include
luxury apartments and a shopping mall with some of the worlds
leading brands. The hotel will also offer an all-day-dining restaurant,
a lobby bar and coffee shop, a rooftop outdoor bar and terrace, and
a business class lounge. The meeting and events area will cover
almost 1,200m 2 , and a spa, g ym and outdoor pool will complement
the facilities. The group has also opened a new residence complex as
part of an expansion project at Radisson Blu Hotel, Maputo, adding
117 serviced apartments equipped with free wi-fi, a refrigerator,
microwave and washing machine. There is also a fitness room
and a choice of dining options. The additional six conference and
banqueting suites can accommodate up to 350 people and the three
breakout rooms can host up to 18 people in closed-door meetings.

6 | JULY2016 For more news, visit businesstravellerafrica.co.za


Y TA T EN YO CAN TA

The award-winning Peermont Doreale Grande hotel at Emperors Palace is undeniably the most popular 5-star choice of
corporate and government executives, as well as discerning entrepreneurs, staying over in the O.R. Tambo International
Airport precinct. With pure palatial splendour eminent in every detail, from classic rooms to presidential suites, and an
Executive Club Floor and Lounge that offers world-class business and concierge services.

Enjoy a dazzling display of molecular gastronomy at Aurelias Restaurant, feel the kiss of the African sunset as it settles
over the Fountain of the Emperors, or indulge your senses at Octavias Sensorium Day Spa. And explore the myriad
of dining, entertainment and meeting options that are unmistakably Emperors Palace.

Add the complimentary Crown Key Hotel Rewards Programme that enhances every
stay and the only question that remains is why choose to stay anywhere else?

Trip Advisor Certificate of Excellence 2014 & 2015 | 5-Star International FOLLOW US

Hotel Awards 2014/5 | World Luxury Hotel Awards 2015 www.emperorspalace.com

Peermont Central Reservations: Tel: 0860 777 900 (SA Only) or +27 (0)11 928 1928 | Peermont Group Sales : +27 (0)11 928 1903
NEWS

Lufthansa to
Resume Cape
Town Service
Lufthansa will resume operations of
the Frankfurt-Cape Town route in its
flight schedule from 2 December with
three weekly flights on Wednesdays,
Fridays and Sundays. Cape Town will
be served by an Airbus A340-300,
which offers more than 279 seats
across three classes. LH576 will leave
Lufthansas Frankfurt hub at 22h10
and reach Cape Town the following
morning at 11h00. The return journey
will depart Cape Town at 18h30 and
land at Frankfurt Airport the following
morning at 05h30.

Masa Square Hotel Relaunch


Masa Square Hotel recently came under new ownership and management, and the hotel introduced a number of
developments in June. Among the new developments accompanying the rebranded Masa property are a fully renovated
foyer and reception, and the introduction of the Don Carlos restaurant and Carlitos caf. The terrace has been fully
renovated, with a caf-style wooden deck and covered seating that extends out onto the Masa piazza. The brand also
launched Masa Suites 30 fully furnished short-stay suites designed for comfort and convenience for travellers opting
for a self-catering stay. Masa Square Hotel forms one of the hospitality properties under Natural Mystik. The property is
managed by aha Hotels & Lodges.

Accor Opens Sofitel


Hotel on Moroccan
Riviera
AccorHotels opened a five-star beachfront
Sofitel in Morocco recently. The Sofitel Tamuda
Bay Beach & Spa offers 82 rooms, including
the Royal Suite, five junior suites, three SoSPA
suites, five villas and eight beach suites.
Sofitel chose French-Lebanese architect Galal
Mahmoud to create Tamuda Bay's design,
which is inspired by 1950s French Riviera.
Contemporary architecture is combined with
Moroccan influences, seen in geometric motifs
and modern reinterpretation of traditional
latticework. The hotel also offers three dining
options, a spa, g ym and meeting space.
(Source: Hospitality Net)

8 | JULY2016 For more news, visit businesstravellerafrica.co.za


City Lodge Makes African
Progress
Construction has begun on the 147-room City Lodge Hotel
Dar es Salaam in Tanzania, with the hotel expected to open
in the fourth quarter of 2017. The hotel will be the groups
fourth hotel in East Africa, joining Kenyas Fairview Hotel,
Town Lodge Upper Hill and City Lodge Hotel Two Rivers.
The Two Rivers project in Nairobi is nearly 25% complete.
This hotel is on track to open to guests in the second
quarter of 2017. Construction on the 151-room Town Lodge
Windhoek in Namibia is likely to begin soon. The hotel is
expected to be open to the public in the third quarter of
2017. Meanwhile, remaining regulatory approvals are being
sought for the development of the 148-room City Lodge Hotel
Maputo in Mozambique. The group hopes to be able to open
this hotel in the third or fourth quarter of 2017.

SAA Strengthens
Mauritius Route
South African Airways has strengthened its route to
Mauritius due to growing demand from African and
international passengers. SA A will add an additional
flight on a Wednesday, bringing the route to double
dailies on four days of the week (Wednesdays,
Thursdays, Saturdays and Sundays) and growing the
route from 10 to 11 flights per week. The additional
flight will depart on a Wednesday as SA192 from
Johannesburg at 08h40, to arrive in Mauritius at
14h30. SA193 returns from Mauritius at 15h20 to
arrive in Johannesburg at 17h45.

Best Western Rewards


Loyal Customers
From now until 26 August, Best Western Rewards
members can earn a $50 Best Western travel card for
every two separate stays at any Best Western property
worldwide. Additionally, BWR members who book
on bestwestern.com will earn 1,000 rewards points
if their stays are completed during the promotional
period.BWR members with a base level membership can
earn up to three gift cards, and members with elite level
membership can earn up to five travel cards.

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BTE242
NEWS

BA Ups Cape Town


Capacity Again
British Airways has added two more flights
to its already expanded Cape Town summer
schedule. The airline normally increases its daily
Cape Town-Heathrow schedule to a double-
daily service over the busy southern hemisphere
summer. In March it announced that it would add
three more flights from Gatwick to Cape Town
commencing 24 November. Now it has further
expanded the schedule, adding two more Cape
Town-Heathrow services from 1 to 9 January and
3 to 27 February. During these periods there will
be 16 weekly Boeing 747-400 flights between
the Mother City and London and three Boeing
777-400 Gatwick services. The airline is also

BON Hotels Re-Branding increasing capacity between Johannesburg and


London from the end of October by expanding its
Underway existing daily A380 service to 10 per week, with
the A380 replacing some of the existing Boeing
Following BON Hotels acquisition of four Protea Hotels in Nigeria 747-400 services.
from Mariott Hotels last year, and with further management
contracts under negotiation, the group has commenced a rebranding
and refurbishment plan to have all the hotels completed for re-
launch later this year. Managed by the African arm, BON Hotel
International West Africa, the group has taken over management,
marketing and administration of Protea Hotel Asokoro Stratten
in Abuja, which is currently undergoing a complete refurbishment
of all rooms and public areas and will be rebranded BON Hotel
Stratten Asokoro. The hotel has 83 en-suite rooms, all with
standard amenities plus a few extras and, in keeping with tradition,
shoe-shining in the passageways. Complimentary wi-fi is available
throughout the hotel. Other facilities include a fitness centre, car
hire, airport shuttles, secure parking, same-day valet service and a
currency exchange. Conference facilities comprise three executive
function rooms seating between 30 and 150 delegates in various
configurations, all available with the standard equipment required.

Deltas Wi-Fi Offering


Delta Air Lines will increase its commitment to on-
board wi-fi by fitting 2Ku technolog y to at least 350
aircraft. This brings Delta's total 2Ku commitment to
more than 600 aircraft in its mainline f leet. 2Ku is next-
generation technolog y that purportedly provides consistent,
uninterrupted coverage nearly any where in the world,
including over oceans. Installation will offer faster speeds
and more bandwidth, allowing for video streaming
functionalit y. Customers will be able to use wi-fi and
in-f light entertainment from taxi and take-off through
landing on 2Ku-enabled aircraft. In late 2016, Delta will
also launch IPT V, giving customers the abilit y to watch live
T V from their own dev ices on 2Ku-enabled aircraft. Deltas
in-f light entertainment system is also being upgraded,
including improved search functionalit y, a new Spotlight
section to highlight promos, connecting gate information
with new terminal maps for select destinations, and a new
welcome screen with different background images based
on departure cit y. The features, which are more aligned to
Deltas website and mobile app, will be rolled out on all
aircraft by the second quarter of 2017.

10 | JULY2016 For more news, visit businesstravellerafrica.co.za


SAACI Congress
The Southern African Association for the Conference Industry held its annual congress in Bloemfontein in
June, and there Business Traveller Africa was exposed to some of the themes and talking points dominating
conversations in and around this segment of the South African business travel industry.

I
was initially a little something, we are going down events destination, along with
surprised at the destination the tubes fast. some of the building blocks
for this years SA ACI Jansen also provided some required, whilst McCurrie was
cong ress, w ith Bloemfontein practical examples of how the surprisingly upbeat about the
not a prominent South A frican conference industry could learn South African economy, which
conference destination, from both the successes and must have encouraged the
particularly when compared failings of the South African audience. His message was clear:
w ith the likes of Johannesburg, education industry, before closing were currently in a downward
Durban, and Cape Tow n. to a standing ovation. cycle, but we will come out of it!
But there was more to the That set the tone for an Along with the full programme
decision than simply taking interesting two days, with SA ACI of presentations and workshops,
this annual event to a fairly SA ACI also ensured the return of
packing the programme with
Innovate@saaci, with the addition
unfamiliar location. It turns out keynote speakers, hot topics,
this year of a busyhub where
that the first ideas around the solutions sessions, out of the
members could negotiate and
formation of SA ACI had their ordinary workshops, leadership
sign business deals with fellow
origins in Bloemfontein in 1985. master classes, and various case
members. This seemed to go
The following year saw the first studies.
down very well, with this area,
congress take place. So, it was The standout presentations adjacent to the main conference
fitting that the 30th anniversary on day one were provided hall, seeing a lot of traffic and
was celebrated in Bloemfontein by Conference Consultancy important meetings.
in 2016. South Africas Pieter Swart Most importantly, the coffee
The President Hotel & and renowned brand specialist on offer was of a high quality
Conference Venue hosted the Thebe Ikalafeng. Swart touched and was hot, which was greatly
congress and the theme was, on the delegate of the future, appreciated on a couple of chilly
with knowledge, its possible. whilst Ikalafeng challenged the Bloemfontein days!
The congress kicked off audience to think outside of the Bottom line the South African
on a chilly Monday morning box undoubtedly one of the conference industry finds itself
with South Africas Minister more recurring themes in the at a bit of a crossroads. Yes, it is,
of Tourism, Derek Hanekom, conference industry, as it seeks to by and large, a thriving industry,
opening the event, followed by remain relevant and of value to with the countrys associations,
arguably the highlight of the its clients and customers. corporates and public sector
two-day programme. Outgoing The featured presentations ensuring a steady stream of
University of the Free State Vice- on day two were provided business for those in the industry.
Chancellor and Rector, Professor by Barbara Jamison, Head of But, with the economy facing some
Jonathan Jansen, delivered an Business Development: Europe challenges and government spend
inspirational address, focusing for London & Partners, the being cut, there are sure to be
on what the conference industry official convention bureau for some headwinds, and this segment
can learn from education. London, and Wayne McCurrie of of the business travel industry
Jansen pulled no punches, would do well to keep reinventing
Momentum Asset Management.
warning the audience that, as itself and remaining relevant.
Jamison provided fascinating
South Africans, were in trouble, insight into how London has
serious trouble. If we dont do Dylan Rogers
positioned itself as a business

For more news, visit businesstravellerafrica.co.za JULY2016 | 11


COMMENT

21st century TMC expectations


Y
oure a 21 st century car rental and warn the hotel about little extras that are important
business traveller. You the delays without you having to to you, like a window seat and a
know how to book your put your hand up. room on the ground floor, without
own airline tickets, car rental and being asked.
accommodation online? So, why do And, if a crisis occurs, you want
you need a travel agent? your TMC to call you immediately ASATA has studied your needs
and provide you with useful and communicated them to
ASATA has done the research in its information and guidance. Your South Africas leading travel
whitepaper The 21st century Travel TMC should know where you are agent groupings. And, they have
Agent and has identified what at all times and alert you to any made a groundbreaking public
you want and what you dont. The potential travel risks in advance, commitment to the South African
truth is, you dont need someone be available to you in the event of consumer by signing the ASATA
to make a simple point-to-point an emergency, contact you in the Charter at the end of May. By
booking for you. You need someone event of travel issues to see how signing, these market leaders
who understands and proactively they can help you when youre have pledged their continued
pre-empts any problems you might in trouble, and to initiate your commitment to delivering
have so that your trip is not only companys emergency response professional service, ethical
painless, but also pleasant. protocols if necessary. conduct and trustworthy behavior
to you, the customer.
Business travel tends to be lonely But, crisis management and
and impersonal, inconvenient problem solving are not the only By entrusting your travel to an
and stressful. And its nice to requirements you have of your ASATA member, that is what you
know theres a professional travel TMC. You want to feel appreciated can expect. That is our promise to
consultant who is thinking about and cared for while travelling. you: travel with peace of mind. C
you and your trip and is available Without compromising the
24/7. If your flight is delayed, you corporate travel policy, you would Otto de Vries
want your TMC to re-schedule your like your TMC to organise those CEO: ASATA

For
For business
business or
or leisure,
leisure, theres
theres always
always
a little something extra.
a little something extra.
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Lusaka Grand Hotel
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+260211-239666/239888 +260977632860
bestwestern.com
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COMMENT

Luxury with
your bleisure?

T
he bleisure trend has taken the world, and
Africa, by storm during the past year. With so
many professionals adopting an always on
working style toting their business mobile devices
every where they go the blurred lines between business
and pleasure just make sense.

For most corporates, taking a few bleisure days is a


great way to see the world without incurring many
expenses. The flight ticket has been paid for by the
company, so the only costs are the extra few days
accommodation and activities.

But, its not always about cost-saving. A new trend, the


bluxury trend, is seeing company leaders and chief
executives exploring how to combine business and
leisure. These bluxury travellers want to relax in the lap
of luxury and are more than happy to splurge. Theyll
extend that business meeting in Nairobi with a couple
of days in a luxury lodge, or go on a shopping spree in
Johannesburg with a personal shopper by their side.

Understanding the bluxury mindset is key. These


travellers have worked hard to fulfil their business
obligations, and are now seeking a reward and some
well-deserved downtime. Their expectations will
radically change during their trip from needing to get
their job done as easily as possible to wanting to indulge
in the destination.

The key for travel agents is to truly know their clients


and to offer tailor-made and bespoke options. A general
bluxury package is unlikely to entice the bluxury
travellers, as they dont want to feel that they are just
following the herd.

Most bluxury travellers have complete autonomy to


decide whether they want to extend their travel for some
leisure time. Nevertheless, travel managers need to look
at incorporating bluxury into the corporate travel policy
to ensure that the traveller is safe at all times.

As a frequent business traveller between Spain and


Africa, Im often tempted to take a few bleisure days,
but with kids waiting for me at home, I must admit it
can be difficult. However, when I do, I definitely want
it to become a bluxury experience. Thats when I call
my travel consultant who plays a key role to make sure
I make the most of these days whether Im alone or
bringing my family with me. C

Paul de Villiers,
Vice-President, Africa
Amadeus

Visit businesstravellerafrica.co.za
COMMENT

An Eye on
West Africa
Trevor Ward

O
MD: W Hospitality nce upon a time there Could anyone do it for each of Oh, the choice these days. Not
Group
was Hilton and Sheraton those chains 41 brands? Almost in most places in Africa, yet, but
and Marriott. We knew impossible. The names, two of certainly in some cities such as
where we stood with them, a which come from the individual Johannesburg and Cape Town,
Hilton was a Hilton, a Sheraton founders, dont mean much in and increasingly in Nairobi, Lagos
a Sheraton, and so on. Then they themselves. They dont convey and one or two others (watch
started widening their horizons, what the chains want you to Kigali and Addis Ababa in the
becoming global players, and relate to. Try looking up the next couple of years). And the
expanding the number of brands meaning of Hilton and Hyatt on chains are selective about which
in their portfolios. According urbandictionary.com, and youll of their brands they will bring to
to their websites, these three see what I mean. Africa. Hilton, for example, will
hotel chains now have no fewer The hotel chains have expanded take on hotels in sub-Saharan
than 41 brands between them. the number of brands they Africa which fit only a few of
And that doesnt include their offer very rapidly 30 of those their 12 brands, including Conrad,
vacation ownership brands, such nearly-120 brands in the top 10 Hilton, Doubletree and Hilton
as Marriott Vacation Club. chains didnt exist a decade ago. Garden Inn. As always there are
And it seems that they are doing exceptions; a Curio is coming up
According to some commentators, so for two main reasons. at the airport in Lagos, but Im
the 10 largest global chains have not convinced well see a Tru here
almost 120 brands between them. First, theres the customers needs. just yet.
Is it any wonder that there is not Well, thats what the chains tell
a single hotel brand in the Forbes us. Millennials, we are told, need Choice can be a good thing,
list of the Top 100 most valuable a different hotel product to the or it can be a bad thing. In the
brands? Baby Boomers because they were supermarket the other day, I
Brands evolved from being a born after 1980, so brands such as counted no fewer than 14 different
products identifying mark, or Marriotts Moxy, Hiltons Tru and sub-brands of a well-known
brand name, meaning that you Starwoods Aloft are specifically toothpaste, and 16 of a leading
could tell who owned a particular targeting that market. Tru calls hair shampoo (they used to have
cow in the herd, and that Coke itself cross-generational, catering 25), proving that the hotel chains
was that bottle full of brown to the millennial mindset, so in are not alone. But choice can be
liquid, not the other one on the other words its for everyone, mind-numbing, especially those
shelf. Today, thanks to the ever- regardless of vintage. Anyone with of us who are maximisers. A
growing marketing industry, they a millennial mindset. Which is satisficer will look at the choices,
have become a self-identifying what exactly? Totally digital, look say thatll do me and pick the
message if I buy that product or at all the choices available on line, one nearest to them. Maximisers
service, then I am hip, successful, and, um, lacking in loyalty to any need to look at every option in
rich. Marketers were seeking to specific brand? (Just kidding!) detail and make sure that they
create public perceptions about the pick the one that exactly meets
product or service, with the brand Second, theres the need for all their needs, is the best value
telling customers what to think growth, which by and large the for money, the right choice. This
about it. Look at the names they hotel chains will only achieve by dilemma goes for everything, from
give perfumes Allure, Obsession, adding more hotels. Thus brands toothpaste to restaurant menus to
Flirt, So Pretty. You get the get added to the portfolio to avoid hotels.
picture, theyre not exactly subtle. cannibalising the business of an
existing hotel, so you put Brand Y The brands are out there, each
Hotel brands are trying to up instead of another Brand X, or of them shouting as loudly as
describe something much more you put Brand Z onto a hotel that possible to get our attention. How
complicated than a little bit of doesnt meet the brand standards do you choose your hotel? C
liquid in a strangely shaped of Brand X or Brand Y. Then you
bottle. And I wonder if they look at the extended stay market, www.w-hospitalitygroup.com
actually ever succeed? Take a and the different STR chain scales,
piece of paper, and describe the and the number of permutations
difference between the customer gets well, gets to 18, if youre
experience in a Marriott, a Hilton Marriott, who still have a way to
and a Sheraton. Not easy, is it? go, I am sure.

14 | JULY2016 Visit businesstravellerafrica.co.za


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KLM has chosen this new aircraft type to ensure its passengers an in the Boeing 747. This was
unforgettable and comfortable journey. followed by entirely new World
Business Class and economy class
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he Boeing 787-9 enables 40% further; a state-of-the-art in- of new Boeing 777-300s. From
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even more comfort and wi-fi for all passengers who want fleet renewal with the deployment
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KLM has chosen to add Finally, the interiors in WBC,
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passengers can experience a new LOWER FUEL CONSUMPTION board the Boeing 787-9. The
way to fly, said Pieter Elbers, With the arrival of this new point of departure for the cabin
KLM President and CEO. aircraft type in October 2015, interior was to maximise comfort
Among the most important KLM is adding a quieter and more and privacy for passengers, while
features of the Boeing 787-9 are fuel-efficient aircraft to its fleet. maintaining KLMs brand values.
the new World Business Class seats The Boeing 787-9 is equipped KLMs Boeing 787-9 is fitted
which recline completely flat and with highly fuel-efficient engines, with on-board wi-fi. This marks
have direct access to the aisle; the which will reduce CO2 emissions the launch of KLM wi-fi, which
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16 | JULY2016 Visit businesstravellerafrica.co.za


entertainment system has been
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tablets and mobile phones. ensure ultimate comfort and more provides access to more than 150
Larger windows, a higher cabin personal room for passengers. films and 200 T V programmes in
pressure and special LED-lighting Large, soft pillows and luxurious 12 languages, including a large
further enhance the unique flight new blankets give the new World number of local films.
experience. This is all aimed Business Class a warm and
at ensuring passengers arrive welcoming feel. Each seat is fitted DREAMLINER SCHEDULE
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destinations. screen and there is also the option Cape Town from 05 July until
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LUXURY PERSONAL SPACE allows passengers to game or chat frequencies on select days of the
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its Boeing 787-9s. The position 294 seats 30 in Business and 264
of the new seats in the cabin and ECONOMY CLASS in Economy.
various design decisions ensure The seats in economy class offer All KLM Dreamliners will be
passengers can enjoy as much passengers extra comfort. The named after flowers; the first
privacy as possible during the back of the seat can recline one was christened Zonnebloem
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Visit businesstravellerafrica.co.za JULY2016 | 17


FEATURE AFRICA'S AIRLINES

African aviation has its challenges, but there is much


to be positive about, as Kate Kennedy discovered.

Looking Up

18 | JULY2016 Visit businesstravellerafrica.co.za


Visit businesstravellerafrica.co.za JULY2016 | 19
FEATURE AFRICA'S AIRLINES

T
hings are looking up for within the continent and a African countries, especially
African aviation. number of factors are helping Eg ypt, Morocco and Tunisia,
International flight to drive this increase, including which are all showing a marked
bookings to Africa for the summer simpler visa processes and decline in tourism numbers,
season were as of early May increasing use of e-visas, as well said Olivier Jager, CEO of
almost 6% ahead of where as improved infrastructure and ForwardKeys. However, the
they were at the same time last lower air fares. picture in sub-Saharan Africa
year, according to data from The data showed forward has changed, with most countries
ForwardKeys, which monitors bookings from Europe which at showing very positive increases.
future travel patterns by analysing 57% has the biggest market share Overall, the majority of
14 million reservation transactions were up 6.0%. Significantly, the intercontinental visitors are
each day. data also indicated that travel travelling for leisure purposes
The figures showed a 5.9% within Africa was increasing 53%, with business accounting for
increase in forward bookings and at a faster rate, up 6.2%. The 17%.
from May to October compared Americas, with a market share of The total number of seats for
with 2015, with robust growth in 15%, were up 12.3%. flights from Europe to Africa,
arrivals from across the globe as Bookings made for the between May and October,
well as from within the continent. beginning of May onwards dropped 7.3%. The fall was due
The ForwardKeys data was showed that nearly all the top to Europe suspending regular
produced in partnership with African destinations were seeing and charter flights to Tunisia and
AviaDev Africa, a route planning an increase in international Eg ypt. UK capacity to Tunisia
and development conference being arrivals. Namibia topped the list, dropped 91% and Russian capacity
launched in Kigali, Rwanda in up 31.2% on the previous year, to Eg ypt was down 97%, reflecting
October by Bench Events. with Kenya in second place, up the impact of terror-related
The ForwardKeys data provides 27.7%%, followed by South Africa, incidents.
a valuable opportunity to look up 21.6%. Johannesburg still heads the
ahead and see how air travel to Only three of the top 15 list for scheduled international air
and within Africa is growing, destinations in Africa were capacity to airports in Africa, but
said Jonathan Worsley, Chairman showing fewer advance bookings Addis Ababa is a close second.
of Bench Events. Many of us Eg ypt down 7.9%, Morocco down ForwardKeys data showed planned
in the industry see the most 6.6% and Tunisia down 25.8%. total seats to Addis enjoying
promising opportunities for Its clear that recent events an increase of 22% for the 2016
growth emerging from air travel have impacted travel to North summer season.

20 | JULY2016 Visit businesstravellerafrica.co.za


WHAT DOES
IT MEAN
TO BE
AFRICAN?

IN AFRICA, YOU DONT WAIT FOR OPPORTUNITY, YOU GO OUT IN SEARCH OF IT.
African business is built on more than possibility: it is a constant pursuit of an ever-changing horizon and the treasure
that lies beyond it. And like it, the people are hopeful. Their spirit is resolute. They are always moving forward.
We are more than just an airline. We are African first. We are a proud carrier of its hopes, its dreams and its unlimited potential.
If you are going places, so are we. Fly SAA.
BRINGING THE WORLD TO AFRICA. TAKING AFRICA TO THE WORLD.
FEATURE AFRICA'S AIRLINES

The ForwardKeys data provides


an interesting backdrop to the
state of African aviation and the
level of interest in air travel on the
continent.
The International Air Transport
Association predicts that the
African market will grow by
4.7% to 294 million passengers a
year by 2034, and that seven of
the worlds ten fastest growing
markets will be in Africa
Malawi, Rwanda, Sierra Leone,
Central African Republic,
Tanzania, Uganda and Ethiopia.
Admittedly, thats off a lower base
than the rest of the world, but
each of these markets is expected
to grow by 7% each year for the
next 20 years.
Further to the ForwardKeys
data, Ethiopian Airlines
commissioned a private study that
also revealed that intra-Africa
traffic is on the rise.
The trade and overall relation
between the African countries is
in a better position than it has
been in the last decade, says
Abel Alemu, Ethiopians Regional
Manager for Southern Africa.
We have seen that the need for
air transport between African
countries is growing as commerce ANOTHER ETHIOPIAN FIRST
and social ties are growing. The
forecast by industry experts also Ethiopian Airlines has one of the youngest fleets in the world and it likes to lead
indicate an increasing trend. the way in aircraft acquisition on the continent. It was the first African airline to
The trend may be positive acquire the B767 in 1984, the B777 in 2010 and the B787 Dreamliner in 2012.
and relations between African
countries may be improving, but This month, the first A350XWBwill become part of our growing fleet, says Abel
that is not across the board, and Alemu, Ethiopians Regional Manager for Southern Africa.
challenges remain.
The A-350 XWB will be the first Airbus aircraft in the Ethiopian fleet and the first of
its kind in Africa.
YAMOUSSOUKRO
DECLARATION & DECISION All seats are fitted with the latest high-definition touchscreen personal monitors
Africa is home to 12% of the and a higher selection of movies, TV series and audio channels. Inflight wi-fi
worlds people, but it accounts for connection will be made available on this aircraft in the future. Passengers with
barely 2% of the global air service smart devices can connect to the world, while others can use the smart individual
market. touchscreens on their seats when the internet service goes operational.
Part of the reason for Africas
under-served status, according to Africas first A350 will provide new features such as wider seats in both business
a 2010 World Bank study,Open and economy classes, the lowest twin engine noise level, advanced air-
Skies for Africa Implementing conditioning technology, and full LED mood lighting.
the Yamoussoukro Decision, is that
many African countries restrict Also upgrading its fleet is RwandAir, which will receive its first widebody Airbus
their air services markets to A330-200 in September. An A330-300 is expected in November, and a Boeing 737-
protect the share held by state- 800NGs should be delivered before 2017. All three aircraft are being factory fitted
owned air carriers. with onboard wi-fi.
This practice originated in the
early 1960s when many newly- They will also have all other contemporary amenities such as mood lighting
independent African states created throughout the cabin, full-flat business class seats equipped with in-seat
national airlines, in part, to assert lumbar massage, and a premium economy class cabin, says Thembela Dladla,
RwandAirs Country Manager for South Africa.
their status as nations. Now,

22 | JULY2016 Visit businesstravellerafrica.co.za


FEATURE AFRICA'S AIRLINES

however, most have recognized


that the strict regulatory
protection that sustains such
carriers has detrimental effects
on air safety records, while also
inflating air fares and dampening
air traffic growth.
Indeed, African ministers
responsible for civil aviation
themselves acknowledged this
in 1999, when they adopted the
Yamoussoukro Decision, named
for the Ivorian city in which it
was agreed. It committed its 44
signatory countries to deregulate
air services and promote regional
air markets open to transnational
competition.
It followed up on the
Yamoussoukro Declaration of
1988, in which many of the same
countries agreed to principles of
air services liberalization. In 2000,
the Decision was endorsed by
heads of state and governments at
the Organization of African Unity,
and became fully binding in 2002.
But implementation has fallen
short. Despite the initial good
COMMENT intentions, the Yamoussoukro
WILL OWEN HUGHES Decision has yet to be fully
SENIOR DIRECTOR, AIR COMMERCE, MIDDLE EAST & AFRICA implemented and many believe
TRAVELPORT the resistance from African
governments to champion the
As a region, Africa represents a huge opportunity for the airline industry, but implementation represents a
it also faces big challenges not least due to regulatory framework surrounding significant barrier to African
traffic rights and infrastructure challenges experienced in some regions. growth, particularly considering
the role that aviation plays in
African airlines, both low-cost carriers and full service, are trailblazing in fostering growth.
adapting to the increasing demand of travellers seeking more personalisation But there is hope.
and flexibility to tailor their journeys according to their needs. The latest airline At the International Air
ancillary revenue report estimates ancillary revenue hit more than $59 billion last Transport Associations African
year, an increase of more than 18% than 2014s figure of $36.7 billion. More
Aviation Day in Abuja, Nigeria in
and more airlines recognise the enhanced revenue opportunities offered by new
May, IATA said that it welcomed
distribution options that allow for a full and rich content retailing experience to
the recent signing of a Solemn
the travel agency and corporate channels.
Declaration by 21 African heads
The evolution of low-cost carriers has seen them embrace e-ticketing of state, re-affirming their
technologies to drive efficiency in marketing and selling to consumers who book commitment to breaking down
through travel agencies. Travelport is supporting African airlines as they seek to the artificial barriers obstructing
add interline capabilities where weprovide solutions to address the changing air transport service expansion
manner in which airlines are positioning and selling their products and services. between African nations by
implementing the Yamoussoukro
Its important to consider that mobile technology is a fast growing segment Decision. IATA urges all
of the global travel industry which is affecting the airline industry as a whole. African nations to expedite its
It is expected that more than 500 million air tickets will be purchased on implementation, which will
mobile platforms by 2018 (up from approximately 200 million in 2014), with stimulate economic growth and
the corresponding transaction value expected to grow from $52 billion in development with at least five
2014 to $145 billion in 2018. All this meansthat we should see growth in new, million more passenger journeys a
comprehensive mobile travel products that enable airlines and travel companies year on the continent.
to deliver sophisticated mobile services to their increasingly mobile-centric There seems to be consensus
customers who want to manage their entire trips via mobile platforms, from regarding the importance of
travel research and booking to planning and preparation, to in-airport, in-flight, opening up Africas skies the
and destination services. continent just needs the political

24 | JULY2016 Visit businesstravellerafrica.co.za


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FEATURE AFRICA'S AIRLINES

SELECTED NEW AFRICAN ROUTES IN 2016


and following SAAs decision to discontinue the route,
Etihad has increased its flights this winter with three extra
Air Botswana resumed flights between Maun and Cape
flights per week between Abu Dhabi and Johannesburg to
Town.
operate from July to September.
Airlink added five flights on the Cape Town-Maun route.
Fastjet launched its first route to Kenya with return
Airlink also re-introduced services between Johannesburg
daily flights into Nairobi. This followed the launch earlier
and Nosy Be (Madagascar).
in the year of flights from Harare and Victoria Falls to
Air Mauritius launched weekly flights to Dar es Salaam. Johannesburg, as well as domestic flights between Harare
and Victoria Falls. 1 July sees fastjet introduce direct,
Air Seychelles after cancelling flights between Victoria
non-stop flights between Johannesburg and Zanzibar twice
and Dar es Salaam, Air Seychelles added a fourth weekly
weekly.
flight between Mah and Johannesburg. The airline also
commenced a weekly non-stop service between Seychelles Fly Blue Crane announced that it would launch services
and Beijing. between Cape Town and Windhoek.

Air Zimbabwe re-launched Harare-Dar es Salaam flights. Iberia will fly to South Africa, once again, from August,
following a four-year hiatus. Iberia will fly to Johannesburg
Arik Air introduced a new service between Nigeria and
three times a week using its latest A330-300 in a two-class
Gabon with three weekly Lagos-Port Harcourt-Libreville
(business and economy) configuration.
flights. It also resumed flights to Freetown (Sierra Leone) in
February. Kenya Airways began flying between Nairobi and Cape
Town this month.
British Airways in March it announced that it would
add three more flights from Gatwick to Cape Town Lufthansa will resume operations of the Frankfurt-Cape
commencing 24 November. It has also added two more Town route in its flight schedule from 2 December with
Cape Town-Heathrow services from 1 to 9 January and three weekly flights on Wednesdays, Fridays and Sundays.
3 to 27 February. BA is also increasing capacity between
Qatar Airways launched two new African routes this year
Johannesburg and London from the end of October by
Marrakech (Morocco) and Windhoek (Namibia).
expanding its existing daily A380 service to 10 per week,
with the A380 replacing some of the existing Boeing 747- Royal Air Maroc launched its first direct flight between
400 services. Nairobi and Casablanca in March. That was after
announcing that it was set to commence the first intra-
Emirates will introduce a third daily service between
Africa route to serve the Accra-Monrovia-Freetown corridor.
Dubai and Cape Town from 4 July, supplementing the two
current daily flights between the two cities. RwandAir will launch flights to Cotonou and Abidjan later
this year.
Ethiopian Airlines commences three weekly flights to
New York-Newark from Addis Ababa in July, via Lom SAA opened a direct service to Abuja from Johannesburg
(Togo). The airline is deploying a Boeing 787 Dreamliner in January, strengthening its presence in Nigeria. It also
on this route. Ethiopian also started double daily flights to added an additional flight from Johannesburg to Mauritius.
Delhi (India) in March.
Turkish Airlines added three flights a week to South
Etihad As result of increased demand from South Africa Sudans capital Juba. The flights go via Entebbe.

26 | JULY2016 Visit businesstravellerafrica.co.za


will and for enough influential the global economy,saidJamal Central Asia Sales for British
countries to drive this change. Saghir,World Bank Director Airways. So, across the industry
Air connectivity can only thrive for Sustainable Development in as a whole, margins are still
when nations open their skies and Africa."African air transport under pressure. Despite this,
their markets, says Tony Tyler, leaders recognized this with the many governments still regard the
IATAs Director General and CEO. Yamoussoukro Decision and this industry as a source of income,
Its a virtuous circle. Growing study underlines the need for ignoring the fact that punitive
connectivity stimulates economies. action on those commitments. aviation taxation constrains one
And healthy economies demand In addition to improvements of the most important sectors for
greater connectivity. in quality and pricing of air facilitating economic growth.
The World Bank study identified services, said the report, countries Because of this, fares remain
other potential benefits. that have abandoned national expensive and beyond the reach
It said that prospects for airlines are in a position to of ordinary citizens, says Richard
reducing Africas high air redirect state resources thus Bodin, fastjets Chief Operating
accident rate would improve if the saved to investments that have Officer. These airlines stay
continents states applied bilateral more positive impact on economic in business because they are
sanctions against airlines that development. In addition, lower subsidised by government, even
failed to meet safety standards transport costs achieved through though they continually make
established by the International enhanced competition reduces financial losses. High taxes add to
Civil Aviation Organization a significant trade barrier for the costs of air travel, as do fuel
(ICAO). In fact, the report said, African countries, while also prices, which are higher in Africa
this is what African air regulators improving prospects for increased than elsewhere in the world, also
agreed to do when they signed the tourism. due to taxation.
Yamoussoukro Decision in 1999. The global economy has Perhaps something for the
Reliable, safe and competitively not recovered at the pace many South African government to
priced air services are essential hoped, says Paolo de Renzis, chew on, as it ponders the future
to better integrating Africa with Head: Middle East, Africa and of its national airline, which has

Ndola

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Polokwane Vilanculos
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Cape Town George Port Elizabeth


FEATURE AFRICA'S AIRLINES

been mired in controversy for IATA also mapped out what


Safety in Africa is the
years and been on the receiving it believes are the five key top priority. Governments
end of criticism from its domestic elements essential to air transport
competitors, who claim that development in Africa. have committed to achieving
SA A has benefitted from anti-
competitive preferential treatment,
Safety Safet y in Africa is
the top priorit y. Governments
world-class safety levels in
in the form of a number of have committed to achiev ing the Abuja Declaration.
government bailouts? world-class safet y levels in the
Abuja Declaration. While safet y
IATAS AFRICA WISH LIST has improved, Africa had the
At the same event in Abuja, IATA highest accident rate among prior to development. This leaves
emphasised its call on African regions in 2015, at 7.88 accidents airlines burdened with paying
governments to prioritize the per million sectors. for excessive and unsustainable
development of aviation nationally Connectivity See development costs.
and at a pan-African level to Yamoussoukro Decision Fuel Surcharges IATA is
bolster economic growth and Infrastructure Development urging African governments to
development. Cost-effective and appropriate tackle the excessive surcharges
Aviation has the potential to be infrastructure development is on fuel, which can make fuel
a much greater strategic catalyst critical to the sustainability and purchases on the continent up
for growth if governments would expansion of African aviation. to 20% more expensive than the
stop milking the industry for Consultation and collaboration global average. Airlines operating
taxes and enable it with smarter among airlines and their to Ethiopia, Gabon, Ghana and
regulations focused on safety and infrastructure partners during Kenya are particularly affected
the development of connectivity. planning and development is by above market fuel costs. These
The commitments are already crucial. No-one knows better than surcharges increase airlines' cost
there with the Abuja Declaration the airlines the level of airport burden when they are already
and the Yamoussoukro Decision. charges that enable a route to be operating in a challenging
Its time to achieve them in viable, and the kind of amenities environment.They also hinder
partnership with industry, said they need to support their growth in an industry that
Hussein Dabbas, IATAs Regional passengers and aircraft efficiently. delivers extensive socio-economic
Vice-President for Africa and the All too often in Africa there is no benefits.
Middle East. real engagement with the airlines Sustainability The aviation

28 | JULY2016 Visit businesstravellerafrica.co.za


industry is committed to achieving
carbon-neutral growth from
the continents most important
economic centres. More and more people
2020 and cutting net emissions Its arguable that fastjet got are turning to aviation as
50% by 2050 compared to 2005. its timing spot-on a couple of
The industry is working hard years ago, when it launched a transport method than
to achieve these goals with
improvements in technolog y,
what it hoped would become the
continents first Pan-African low-
ever before, which is a good
operations and infrastructure. cost airline. Backed internationally sign for growth in the East
However, to be fully successful by established European player
a global market-based measure easyJet, fastjet has already made African aviation sector.
(GMBM) is needed and that must big strides in just a few years,
be agreed by governments through launching routes from its base in
ICAO. Tanzania to South Africa, Zambia, demonstrates a demand for
A wish list, indeed, and one Zimbabwe, Uganda, and Kenya, affordable air travel in the region,
that Africas governments would along with a host of domestic says Bodin. From our own
do well to study, putting aside routes. surveys we know that 38% of our
individual interests and taking a In doing so, fastjet has made a passengers are first-time flyers.
broader continental view. material difference to the African This means that more and more
aviation landscape, making air people are turning to aviation
LOW-COST BUSINESS travel affordable to a segment as a transport method than ever
One of the more positive of the African population that before, which is a good sign
developments in African aviation previously couldnt afford it. for growth in the East African
in recent years has been the No surprise then that it aviation sector.
emergence of an Africa-based has reported a 30% year-on- Not just in East Africa,
low-cost airline that has been year increase in the number of according to De Renzis.
able to branch out from its passengers it carried in 2015. As connectivity and
initial base and connect some of We believe that this clearly infrastructure within Africa

MangoMango hashas signed signeda newa newmulti-year


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FEATURE AFRICA'S AIRLINES

improves, air travel will become


easier and more affordable, he
says.
With times being as tough
as theyve ever been, low-cost
airlines have started to play an
even bigger role in the business
travel space and have shaken
up the traditional view of this
travel segment. South Africa has
examples of this, with a vibrant
and competitive low-cost market
courtesy of the likes of Kulula,
Mango and FlySafair.
Business owners and their
employees are aware of budget
constraints and understand the product that better services the on the spend. An online account-
need to get the best value for needs of small, medium and management tool enables members
money, and Bodin believes that micro-sized enterprises (SMME). to maximise the potential of the
they are choosing travel options On Business rewards companies programme and effectively use
that move away from high cost, for their loyalty, while taking into accumulated points. It can be
frills and full-service offerings account some of the particular configured to provide customised
to airlines that offer reliable, needs of SMMEs. The programme reports, enabling members to track
affordable services and a good has been made more flexible, so who is earning where and when.
network. members who want immediate Points can be used for cabin
We have noticed that more savings can choose an upfront upgrades or special offers. They
African corporate companies discount off flights, if they consider can also be used up to one day
reser ve business or full-ser vice this a better option than collecting before travel to make date and time
air travel for long-haul f lights, points for redemption flights. changes to redemption flights.
he says. Rather than points being Global research which British
On a similar note, British awarded for distance flown, every Airways commissioned across
Airways has identified the time an On Business member fast-growing markets such as
importance of developing a makes a booking it earns points India and China and established

30 | JULY2016 Visit businesstravellerafrica.co.za


rwandair.com

Flying the African


Dream across Africa,
Middle East & Asia
Current routes

Dubai Libreville Accra Nairobi

Mombasa Brazzaville Lagos Johannesburg

Juba Lusaka Douala Bujumbura


The falling oil price did bring
down operating costs, but it also
slowed down the growth of the
major oil-exporting countries. Entebbe Dar es Salaam Kilimanjaro Kigali

economies like the United States and United Kingdom Opening soon
showed that SMMEs think short-term and are always
looking for the best deal. They crave flexibility.
"This is almost the antithesis of the typical airline
offering," says Edward Frost, BAs Commercial Manager
for South and East Africa. "Airlines want to encourage
early booking, so they can fill flights. They discourage
changes, particularly on discounted fares, as this makes Mumbai Abidjan Khartoum Guangzhou
booking patterns more predictable."
"On Business is designed to deliver a loyalty dividend,
which over time should enable businesses to achieve
savings that would not be possible by last-minute
shopping around for the cheapest fares."
Cotonou Harare Abuja Durban
OIL PRICE
The oil price plummet of late-2014 took the world
by surprise and many passengers speculated that air
travel costs would fall, in line with the decreased cost
of jet fuel. This was obviously a very simplistic view, +27 11 289 8050
notwithstanding the fact that many of the worlds
sales.johannesburg@rwandair.com
airlines hedge their fuel price purchases and would have
been tied into the same price for some time to come.
As a result, the airlines had a bit of a public relations
job on their hands, as they sought to appease demanding
customers who wanted to know why their air ticket
prices hadnt come down.

Visit businesstravellerafrica.co.za JULY2016 | 31


FEATURE AFRICA'S AIRLINES

While energy costs have There were other spin-offs.


BAs Frost believes its been a
fallen, the energy economy has bit of a double-edged sword
lowering the barriers to entry for
also fallen, with a correlative previously non-profitable airlines
impact on business travel. and leading to a glut of capacity.
Ethiopian Airlines Alemu
agrees.
The falling oil price did bring
down operating costs, but it also
slowed down the growth of the
major oil-exporting countries, he
says.
Not everyone shares their view.
I dont see a glut of capacity,
says Maher Koubaa, Vice-
President, Middle East and Africa,
Airline IT and Distribution at
Amadeus. Airlines cannot assume
that fuel prices will remain at
their current low level. A return
of higher fuel prices would make
it difficult for the long-haul
operation to be profitable, and
some African airlines may require
a fundamental transformation to
be profitable over the long run.
After falling to a low of
around $38 earlier this year, at
the time of going to press the
oil price was approaching $50,
with indications that it would
continue to climb. A lower fuel
price would provide some relief
for airlines and travellers alike,
but an unfavourable exchange
rate negates much of the benefit,
given that most operating expenses
for African airlines are priced in
foreign currency.
Lower oil price gains
unfortunately are being absorbed
TURKISH BEEFS UP SA OFFERING by the weakened economy, says
Late-June saw Turkish Airlines announce that from October it would offer Thembela Dladla, RwandAirs
non-stop Cape Town-Istanbul flights throughout the year. This followed the Country Manager for South Africa.
news in May that the airline would be increasing flights between Durban's King While energ y costs have fallen,
Shaka International Airport and Istanbul's Atatrk Airport come 31 October, the energ y economy has also
for the duration of the South African summer up until 25 March 2017. Turkish fallen, with a correlative impact
will increase Istanbul flights from four to five a week. Turkish Airlines has also on business travel, says Akbar Al
increased flights between Johannesburg and Istanbul. The new flight flies Baker, Qatar Airways Group Chief
to Johannesburg on Mondays, Thursdays and Saturdays, leaving Istanbul at Executive. However, in Africa we
21h05 and arriving in Johannesburg the morning after at 05h55, bringing the continue to see overall growth in
total number of weekly flights to the city to 10. demand for air travel.
It might be slow, and it may
It is our intention to eventually have double dailies into each of Johannesburg,
have its challenges, but African
Durban and Cape Town, says Muhammed Mehdi Tunc, General Manager:
growth is a reality. C
Johannesburg for Turkish Airlines. We have been really aggressive in the
South African market over the last three, four years. South Africa is a giant and
Joburg is very important. It is the capital of the mining industry of the world. If
you operate strongly in Joburg and South Africa, you can operate strongly in
the rest of Africa. It is a tough market and we want to be the top player in the
market.

32 | JULY2016 Visit businesstravellerafrica.co.za


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FEATURE HOTEL GROUPS IN AFRICA

34 | JULY2016 Visit businesstravellerafrica.co.za


Full Steam
Ahead
Some of Africas biggest economies remain under pressure,
yet that hasnt deterred the worlds hotel groups from
continuing to invest in the continent, with a host of openings
due to hit the market in the coming years.

T he Michelangelo on Nelson Mandela Square


FEATURE HOTEL GROUPS IN AFRICA

City Lodge Hotel Two Rivers

For emerging economies


T
here is a school of thought said Dr Rob Davidson, Managing
that the African continent Director of MICE Knowledge, as a whole, growth for 2015
is not as attractive an
investment proposition than it was
in Reed Travel Exhibitions ibtm
World Trends Watch Report 2015.
was 4%, the weakest since
say three or four years ago. For emerging economies as a 2009 and almost half of the
Thats thanks to a host of
factors, including political
whole, growth for 2015 was 4%,
the weakest since 2009 and almost
growth rate of 7.5% recorded
instability, an over-reliance on half of the growth rate of 7.5% for emerging economies in
an oil price that has plummeted, recorded for emerging economies 2010. The gap between growth
slow growth in some countries, in 2010. The gap between growth
persistent terrorist activity, and a rates of advanced economies and rates of advanced economies
hangover from the Ebola crisis. those of the emerging economies and those of the emerging
Further to that, Africa may be is narrowing.
the last untapped continent, Now, that may be lumping economies is narrowing.
but theres no doubt that it is not Africas more prominent
immune from the changing global economies in with the rest of the
economic tide, and that applies worlds emerging markets, but report, the total number of rooms
to both international business theres no doubt that the tide in the 2016 pipeline is up almost
coming into Africa and existing has changed. Yet, despite this 30% on 2015.
business on the continent. somewhat negative sentiment, the Compare that with figures
In 2015, steady growth in worlds top hospitality companies produced by STR, the global hotel
the worlds advanced economies are continuing to invest in the data and benchmarking provider,
was matched by declining rates African continent, with a hotel who report that the global
of growth in the emerging development pipeline that makes development pipeline is up 10% on
economies, a reversal of the for impressive reading. 2015, and 13.6% in the USA, the
situation of a few years ago when According to W Hospitality largest single market, says the
the booming BRICS nations were Groups annual Hotel Chain report.
fuelling the global recovery, Development Pipelines in Africa Admittedly, Africas hospitality

36 | JULY2016 Visit businesstravellerafrica.co.za


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FEATURE HOTEL GROUPS IN AFRICA

growth is off a much lower base, distinguish between deals which there is great potential in key
but the increase is still significant. are still in the planning stage markets and across the continent
According to W Hospitality, that and those on which construction as a whole.
increase is largely due to strong has commenced, and are closer This from a group that plans
growth in sub-Saharan Africa, to reality (although in Africa, to double its existing African
which continues to surpass North starting construction of a hotel portfolio to nearly 80 properties
Africa. is no guarantee of completion). on the continent in the next few
In 2015, the pipeline in North We have therefore analysed years.
Africa (Morocco, Algeria, Tunisia, the pipeline deals according to Hilton Worldwide currently
Libya and Eg ypt) was just over whether they are on site. has 36 hotels in its development
18,500 rooms, which in 2016 has That being said, some of the pipeline and an existing portfolio
increased by 7.5% to just under worlds big international players of 41 open hotels across the
20,000 rooms, says the report. remain bullish about their future continent. The next few years will
Contrast that with sub-Saharan in Africa, if some of the comments see the group expand its footprint,
Africa, where the pipeline has below are anything to go by. as well as add locations and
increased by 42.1%. This is clear brands in both new and existing
evidence that investors remain BIG GROUPS GO BIG countries.
confident about the future of We believe the market in In terms of the brands,
the hospitality industry on the Africa will continue to grow the African continent will be
continent. to the benefit of both domestic introduced to the likes of Hilton
That much is obvious, with the and international brands the Garden Inn and Curio A
2016 Research Findings
worlds international hotel groups potential for Africa is enormous, Collection by Hilton. Hilton
still impressed by what growth says Jan van der Putten, Hilton opened a Hilton Garden Inn in
Our survey achieved a response rate ofVice-President:
potential Africa offers, despite its
over 90 per cent, with 36 of the 38 chains whom
Operations Morocco in March this year and
we approached
challenges.
contributing to the research by reporting their pipeline activity, totalling
African & Indian Ocean. We has an additional 14 HGI hotels
365 W hotels with 64,231 rooms. This is an increase of
Hospitality does make it clear are committed to growth29.2 per and
cent on 2015s reported in its development pipeline, which
pipeline activity
in its report ofit
that about 49,715 rooms
is important in 270 hotels.
to development We listand
in Africa all the contributing chains
believe will see the brand introduced to
and their brands in Appendix 1. countries including Botswana,
Ghana, Kenya, Namibia and
Hotel Chain Development Pipelines in Africa 2016 Swaziland, along with other
Regional Summary countries across the continent.
Hilton Garden Inn is an ideal
2012 2013 2014 2015 2016
Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms
brand for Africa as it is focused
North Africa 77 17,217 73 18,065 73 16,449 79 18,565 87 19.971 very firmly in the mid-scale sector
Sub-Saharan Africa 100 17,109 115 18,191 142 23,283 191 31,150 278 44,260 (or focused service as we refer to
Total 177 34,326 188 36,256 215 39,732 270 49,715 365 64,231 it within Hilton) and offers guests
Courtesy: W Hospitality Group an excellent product and facilities
at a great price, says Van der
Putten. The brand absolutely
Chart 1: Hotel Chain Development Pipelines in Africa 2016 fills that gap between full service
Regional Summary sector and the budget end of the
50,000 spectrum with a quality product
and service values from a brand
40,000
that is well known, trusted and
30,000
respected.
The first Curio in Africa is
20,000 expected to be The Legend
Hotel at Murtala Muhammed
10,000 International Airport in Lagos
later this year. The hotel will
0 be located within the airport
2012
2012 2013
2013 2014
2014 2015
2015 2016
2016 boundaries and will feature 54
rooms, including eight suites. The
Curio collection is a global set of
North Africa Sub-Saharan Africa upscale and luxury hotels hand-
picked for their unique character
and personality.
Curio is a great opportunity
2015 was a very busy year for us at Starwood. We expanded our footprint into 3 new countries for investors looking to benefit
(Kenya, Tanzania and Mali) and introduced two new brands to the continent aloft, with its design- from the performance advantage
savvy spaces providing a welcome respite in the mid-market segment and Element, our eco-aware and smart innovations of Hilton,
extended-stay product that offers the famous Westin Heavenly Bed. Then of course, there was the W whilst retaining the individual
Cityin Lodge
Sharm elDar es Salaam
Sheikh, promising to deliver a brand new, world-class, lifestyle WOW-resort in Sharm el character and identity of their
Sheikh by the time the market normalises

38 | JULY2016 Neil George Visit businesstravellerafrica.co.za


Senior VP, Acquisitions and Development, Starwood Hotels & Resorts
FEATURE HOTEL GROUPS IN AFRICA

Four Points by Sheraton Lagos

to Africa, including W Hotels,


Aloft and Element.
By 2020, Starwood will have
10 of its 11 compelling lifestyle
brands present in Africa and
Indian Ocean, says Ahdab.
There is clearly great synerg y
between Starwood and Marriott,
as the latter, according to W
Hospitality Group, plans to open
38 properties in Africa over the
coming years. That includes 10
new hotels in 2016, bringing an
additional 1,623 rooms to the
market. These new openings
include two properties in each
of Nigeria and Rwanda, as well
as properties in Eg ypt, Morocco,
Ghana, Zambia, and Uganda,
covering Marriott brands such as
Ritz-Cartlon, JW Marriott, Protea
Hotels by Marriott, Courtyard by
Marriott, Marriott Hotels, and
Four Points by Sheraton Lagos Renaissance Hotels.
The other two big groups
with a host of properties in
their pipelines are AccorHotels
(see Angola section) and Carlson
Rezidor. The latter also appears
eager to introduce new brands to
the African continent, along with
expanding its overall footprint.
We aim to proactively secure
multi-unit growth in selected
countries (Ethiopia, Kenya,
Tanzania, Mozambique, Angola,
Ghana and Algeria) and establish
hotel networks in the three main
economic regions (ECOWAS,
SADC, EEC). In addition, explore
multi-hotel deals through various
business platforms and exploit
opportunities across the select
target markets to roll out our two
new brands, Radisson Red and
Quorvus Collection, says Andrew
McLachlan, Rezidors Vice-
hotel, says Van der Putten. development and plans to have 60 President: Business Development.
Hilton is not alone in its view on properties with more than 15,000 Interestingly, having previously
the future of African hospitality. rooms in 22 countries by 2020. led the development race, Carlson
Leaving aside its proposed Africa is an underserved Rezidor has slipped behind Accor,
merger with Marriott for the market as far as branded hotel Hilton and Marriot in terms of the
moment, Starwood Hotels & room inventory is concerned overall planned number of hotels
Resorts is already one of the in most markets, says Hassan and rooms, but the W Hospitality
largest international hotel Ahdab, Starwoods Regional Vice- report explains why.
companies in Africa, currently President Africa & Indian Ocean. Carlson Rezidor has low
operating 34 hotels with over As the middle class continues to growth, just 5.5% on 2015, but
10,000 rooms across six lifestyle rise, we will continue to see an it opened the most hotels of any
brands Le Meridien, Sheraton, increase in demand for quality chain in 2015 (eight hotels), thus
Westin, Luxury Collection, St lodging in the business hotel reducing its pipeline. Had they
Regis and Four Points by Sheraton. category. not opened and were still in their
Further to that, the group Starwood is also looking to pipeline, its growth would have
has 26 hotels currently under introduce some of its other brands been 26.5%. The chain signed

40 | JULY2016 Visit businesstravellerafrica.co.za


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16_253

#ThePreferredLife
2016 Preferred Hotels & Resorts

C A S T I L L E PA R I S C A P E R O YA L E L U X U RY ME LONDON
H O T E L & S PA
FEATURE HOTEL GROUPS IN AFRICA

seven new deals in 2015, with


1,400 rooms, so still made good
progress.
Recognizing Africas growing
Table 4: Hotel Chain Development Pipelines in Africa 2016
potential and the drastic lack of
SSA vs. North Africa by Pipeline Status quality hotels in many countries
Hotels Rooms throughout the continent,
Total Total On-Site Construction Carlson Rezidor is accelerating its
Sub-Saharan Africa 278 44,260 26,384 60% growth strateg y for Africa, says
North Africa 87 19,971 15,322 77% McLachlan.
TOTAL 365 64,231 41,706 65% According to him, that
accelerating growth strateg y is
defined as:
- Key Countries countries
We continue consolidating our presence in Egypt across our three brands - Raffles, Fairmont and where the group believes it
Swissotel - and we have identified several opportunities for luxury destinations outside Cairo and should have more than 15 hotels
Sharm el Sheikh. in each country by 2020, and
Francois Baudin, they are Nigeria and South
Senior VP Development, Fairmont Raffles Africa
-  Proactive Countries countries
where the group believes it
should have more than five
North Africa has a much higher proportion of its pipeline rooms on site, due to the fact
hotels in each country by 2020,
that many of the deals were signed a few years ago, and because over half (154) of the
and they are Ethiopia, Kenya,
deals in sub-Saharan Africa were signed in 2014 and 2015, therefore still in the planning
Four Seasons Hotel Westclif f Tanzania, Mozambique, Angola,
stage.
Ghana, Algeria and Tunisia
- Proactive Capital Cities and
Hotel Chain Development Pipelines in Africa 2016 Top 10 Financial Hubs within the three
Countries by Number of Rooms economic communities
- Reactive Capital Cities and
Hotels Rooms Average Size Financial Hubs
1 Nigeria 61 10,222 168 Suffice to say that the worlds
2 Angola 56 7,560 135
big groups are going to be fighting
3 Egypt 19 6,660 351
4 Morocco 33 5,681 172 it out for years to come, if these
5 Algeria 15 3,263 218 ambition plans all reach fruition.
6 Tunisia 15 2,976 198
7 Kenya 16 2,956 185 MARRIOTT-STARWOOD
8 Ethiopia 12 2,460 205
9 South Africa 11 2,058 187
MERGER
10 Senegal 13 1,943 149 If you think those pipeline
Courtesy: W Hospitality Group numbers are impressive, consider
this: should the proposed
Marriott-Starwood merger go
Park Inn by Radisson Abuja Kaura, Nigeria through, it will create the biggest
hotel company in the world,
boasting more than a million
rooms, 30 brands, 5,500 hotels
and 330,000 associates in over a
hundred countries.
Our combined portfolio will
integrate Starwoods industry-
leading lifestyle brands and global
footprint with Marriotts strong
presence in select-service tiers,
and in convention and resort
segments, says Ahdab.
9 To put the numbers into
perspective, the combined
company would have more than
386,000 rooms under development,
which is larger than Starwoods
existing footprint.
Marriott had previously stated
that it expected to complete the

42 | JULY2016 Visit businesstravellerafrica.co.za


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FEATURE HOTEL GROUPS IN AFRICA

merger prior to the end of June,


BREAKING AHIF NEWS although no confirmation of that
had been forthcoming by the time
Carlson Rezidor used the opportunity of the Africa Hotel Investment Forum in Lom, of going to press.
Togo in late-June to reinforce its position as one of the major players in African hotel If, as expected, the deal does
development. go through, it will completely
change the complexion of the
The group announced the signing of its first Quorvus Collection in Africa: the five-star,
international hotel industry, with
244-room luxury Emerald Grand Hotel & Spa in Lagos, Nigeria, which is expected to open
obvious impact on the African
in 2019. Carlson Rezidor also announced the signing of a new Radisson Blu property in
continent, where both Starwood
Harare, Zimbabwe (245 rooms), which is also slated to open in 2019. This followed the
and Marriott already both enjoy
news that the Umhlanga region in Durban would receive a Radisson Blu (207 rooms) in
the coming years, whilst Rezidor will also introduce the Park Inn by Radisson brand to a significant presence. Marriott
Mauritius, in Quatre Bornes, the new commercial hub of the island. played a big hand by buying
out South African group Protea
Africa is Rezidors biggest growth market, says Wolfgang M. Neumann, President and Hotels in 2014, and in doing
CEO of The Rezidor Hotel Group. Our groups total portfolio comprises 69 hotels in 28 so gobbled up over a hundred
countries, with over 15,000 rooms in operation or under development. Radisson Blu leads properties in Africa. That number
the way with more hotel rooms under development than any of the other 85+ hotel brands has been reduced, as many of
active in Africa today. Our ambition is to be the leading player in the travel and tourism the previously Protea-branded
sector across the continent. properties failed to make the
grade, in terms of Marriott
In the last 24 months, we have signed a new hotel deal in Africa every 37 days, says standards, but the acquisition
Carlson Rezidors Executive Vice-President & Chief Development Officer, Elie Younes. And instantly made Marriott the big
its not just about signing hotels - we are delivering our pipeline. We have opened a hotel player in Africa.
in Africa every 60 days. In 2016 and beyond, we aim to maintain this great momentum. That being said, how do
Marriott and Starwoods
competitors see the proposed
merger?
This is a very competitive
industry and this has always
been the case, says Pascal
Gauvin, IHGs Chief Operating
Officer: India, Middle East &
Africa. So we are very used to
operating in this context. It shows
that opportunities continue to
exist for all players within the
sector. We have a compelling,
well-established and long-term
winning strateg y for high-
quality growth and a highly
cash generative business. You
could argue that we kicked off
the last round of M&A with our
acquisition of Kimpton!
Gauvins reference is to the
2014 IHG acquisition of boutique
hotels operator Kimpton, and its
rumoured that IHG also sniffed
around a potential deal with
Starwood.
Another take on the proposed
Marriott-Starwood merger is what
it will mean for the two groups
brands, which would obviously
have an impact on the hospitality
landscape in Africa.
Ahdab doesnt foresee much in
the way of change in the short-
term.
Our brands are widely
recognized for their unique
programming, innovation and

44 | JULY2016 Visit businesstravellerafrica.co.za


design and Marriott has long A MORE AFRICAN BUY-OUT? delays in getting approvals from
admired them, he says. Marriott Perhaps a different perspective on the Competition Commission
has continually said that it the merger or buy-out space from adversely impacted on the
expects the majority of Starwoods an African point of view. 12-month deal deadline dates and
brands to remain intact and plans In South Africa, Sun the financial dynamics changed
to use its development muscle International agreed to buy due to negative macro-economic
to help them grow more quickly fellow hotel and casino operator factors, says Mark Jakins,
than ever before. Peermont Global for R9.4bn Peermonts Group Marketing &
Not everyone is convinced of ($632m) in March last year to add Regional Operations Executive, in
the value in broadening the brand properties such as Johannesburgs reference to the extreme exchange
offering even further. Emperors Place to its portfolio rate fluctuations South Africa
Marriott has presented and strengthen its gaming has experienced over the past six
the merger in the media as a offering. The proposed deal would months.
strateg y by which to achieve also resolve the two groups Jakins, though, is not surprised
greater control over large volume dispute over Sun Internationals by the interest shown in Africa
online global distribution, says development of the Menlyn Maine by the worlds big groups, and
Sebastien Carre, General Manager complex in Pretoria. believes more activity could be
of Four Seasons Hotel Westcliff But the deal fell through after seen in the not too distant future.
Johannesburg. The resulting South Africas Competition For those companies who
portfolio will aggregate a vast Commission recommended have a deep understanding of
number of different brands at in December that the deal be the African continent, including
various levels of service. Four blocked due to the effect on the local property, legal and labour
Seasons instead remains solely gambling market in the province conditions in different countries,
focused on its unwavering long- of Gauteng, which is home to the Africa does remain viable as
term strateg y to develop our city of Johannesburg. a growth market for global
portfolio as a single brand. Unfortunately, the long players, he says. We have seen

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FEATURE HOTEL GROUPS IN AFRICA

independent hotels and chains dependence from the mineral (Marriott next best on 38) and
being acquired as global brands economy, namely oil and diamond rooms (Hilton in second place).
seek to expand, and this is likely industry, said Carlos Manuel de Angola had seen virtually
to continue. Global reservations, Sao Vicente, Chairman of A A A, no deal activity in the past, but
procurement and marketing at the time. A A A is already AccorHotels recent deal results in a
opportunities do make sense in contributing to achieving this massive increase for that country,
this regard. strategic role by investing in the says the report. With this one deal,
building of a national chain of 50 AccorHotels has propelled itself
ANGOLA hotels in all the provincial capitals from sixth place in the rankings in
Back to Africas pipeline and and a chain of three logistic 2015 to number one in 2016 (as a
arguably the biggest hotel centres to supply the hotels. company) and its Ibis Styles brand
development story and the biggest We are sure that Angola will also tops the table.
deal of the past few years. soon become a big player in the Now that Accor has broken the
2015 saw AccorHotels announce hospitality and tourism activity deadlock, in terms of international
that it had signed 50 hotels in in Africa. Angola will become a groups gaining a foothold in
Africa through Chart
an exclusive major tourist Pipelines
6: Hotel Chain Development destination. Our 2016
in Africa Angola, there could well be more
partnership with Angolan 50 hotels will help to stimulate development activity in the future,
Top 10 Cities in Sub-Saharan Africa by Number of Planned Rooms
oil insurance and investment the domestic and international with Carlson Rezidor already
company
4,000 A A Activos Lda. It was tourism. confirming that it has plans for a
announced4,047at the time that the No surprise then that Angola 257-room Radisson Blu in Luanda
503,500
hotels, totalling3,722
6,200 rooms, and Accor feature prominently in in the future.
would open between 2015 and W Hospitalitys report, with the
3,000
2017, and would range from report detailing a further 15 Accor NIGERIA
economy
2,500 to midscale and luxury, properties in the pipeline for the Angola may be the big current
2,666
encompassing the operators Ibis rest of the African continent, development story, but that
Styles,
2,000 Mercure and Sofitel brands. 2,293placing it way out in front of hasnt diminished Nigerias
Angola is diversifying the its competitors, both in terms status as the traditional big
1,500 1,665
economy in order to reduce the of number of1,585
planned hotels hitter in hotel development, with
1,367 the West African country still
1,000 1,248 1,200 1,168 heading the standings, in terms
Hilton
500 Garden Inn Gaborone of W Hospitalitys report and
the number of hotels in Nigerias
0 pipeline.
Lagos Abuja Nairobi Addis Luanda Dakar Kigali Kampala Abidjan Accra According to the report, the
Ababa
country has 61 planned hotels,
totalling over 10,000 rooms,
and thats despite the economic
Looking just at sub-Saharan Africa, Luanda, the capital of Angola, gets into the top five
challenges Nigeria currently faces,
cities, after Lagos, Abuja, Nairobi and Addis Ababa. Abidjan, arguably the most important
mainly due to its over-reliance on
city in Francophone West Africa, enters the ranking in 9th place, with more to come, as
an oil price that has plummeted
Cte dIvoire overtakes Nigeria as a potential investment destination, according to a
over the past 18 months. Nigeria
recent survey.
finds itself under pressure to
Having analysed where it is happening, or due to happen, we then look at who is making
diversify its economic base and
the running. The top 10 brands by number of hotels and rooms in their pipelines are reduce its continued dependence
shown in Table 7 and Chart 7, and data on all brands is included as Appendix 3. on this commodity, whilst some of
the spin-offs of this over-reliance
have taken the form of reduced
Hotel Chain Development Pipelines in Africa 2016 Top 10 hotel occupancy levels and a
decrease in room rates.
Brands by Number of Planned Hotels and Rooms
This may explain why Nigeria
Change Average has only 40% of its pipeline under
Rank by Hotels Rank by Rooms
on 2015 Size construction, according to W
Brand Units Brand Rooms Rooms
Hospitality - the lowest proportion
1 Ibis Styles 28 1 Radisson Blu 5,693 6% 228
of the top 10 countries. Whilst 32
2 Radisson Blu 25 2 Hilton 4,851 -2% 303
of the 61 deals were signed in 2014
3 Mercure 24 3 Ibis Styles 3,822 - 137
or more recently, and therefore
4 Hilton 16 4 Marriott 2,919 26% 209
5= Marriott 14 5 Hilton Garden Inn 2,566 53% 183
can be expected still to be in
5= Hilton Garden Inn 14 6 Mercure 2,526 606% 105 planning, the ratio does highlight
7= Swiss Spirit 10 7 Sheraton 2,045 10% 227 the challenges of getting a hotel
7= Golden Tulip 10 8 Mvenpick 1,866 86% 267 project to start on site. In addition,
9= Sheraton 9 9 Four Points by Sheraton 1,797 44% 200 some of the hotels under
9= Four Points by Sheraton 9 10 Fairmont 1,412 109% 282 construction have been stalled for
Courtesy: W Hospitality Group some time after work started, in

46 | JULY2016 Visit businesstravellerafrica.co.za


one or two cases for several years. are currently under construction. Opening a property in the
Despite all that, the Skip to 2019 and Hilton plans to thriving modern capital, Abuja,
international groups are not open a further four properties that the countrys political hub, home
fleeing Nigeria, and it remains year, with two Hilton Garden Inns to foreign embassies, global oil
an attractive hotel development in Ikeja (Lagos) and Owerri, and exporting companies as well as
destination, with some of the Transcorp Hilton properties in OPECs regional headquarters,
worlds big players such as Lagos and Port Harcourt. is a strategic move that truly
Marriott, Starwood, Hilton, Nigeria is Africas economic capitalises on the citys strong
Carlson Rezidor and Moevenpick powerhouse with a GDP of $568.5 growth in trade and business,
taking a long-term view on the billion and a population of 177.5 says ODea.
countrys potential. million in 2014, according to the Another group with plenty of
According to Marriott, it has World Bank, says Alan ODea, faith in Nigeria is BON Hotels a
eight properties four each Senior Vice-President Africa for South Africa-based hospitality
in Lagos and Abuja in its Moevenpick Hotels & Resorts. company that owns, manages
development pipeline, although It is the worlds 20th largest and markets hotels, and features
the majority of them are only due economy, its eighth largest a group of former Protea Hotels
for opening in 2018 and 2019. oil exporter, and by 2050 will executives, headed up by CEO and
Hilton has six properties in its become the third most populated founder Guy Stehlik.
Nigerian pipeline. Besides the nation after China and India, A large percentage of our
Curio property already mentioned, with an estimated 440 million recent growth has been in Nigeria
there is nothing currently in the inhabitants. due to our successful presence and
short-term, but from 2017 the Moevenpick currently has our West African office in Lagos,
projected openings ramp up. That seven properties in its African says Stehilk. We have developed
year Hilton says it hopes to open development pipeline, including a very exciting concept for new
Hilton Garden Inn properties in a hotel in Abuja, the Nigerian hotels in the region, a project
Uyo and at Abuja Airport. Both capital. that has been in the making for

TNW7490
Marriott are also working with eight of their brands in Africa, and others such as Hilton
and Wyndham with four.
FEATURE HOTEL GROUPS IN AFRICA
Table 9 and Chart 9 show the top 10 chains by hotels and rooms. Appendix 4 provides
detail for all the chains.

Hotel Chain Development Pipelines in Africa 2016 Top 10


Chains by Number of Planned Hotels and Rooms
industry, but the rest of Nigeria is
Rank by Hotels Rank by Rooms extremely buoyant.
Change Average From a development point of
on 2015 Size (Rooms)
you, theres a huge challenge in
1 AccorHotels 65 1 AccorHotels 8,794 286.9% 135
2 Marriott 38 2 Hilton Worldwide 8,501 17.3% 236 raising institutional finance for
3 Hilton Worldwide 36 3 Marriott 7,683 19.8% 202 Greenfield hotel developments,
4 Carlson Rezidor 34 4 Carlson Rezidor 7,338 5.5% 216 but Nigerians are resourceful,
5 Starwood 26 5 Starwood 5,765 24.7% 222 he says. There are pockets of
6 Swiss International 19 6 Rotana 2,409 23.2% 241
opportunity in the north, but they
7 Mangalis 17 7 Mangalis 2,329 - 137
8 Louvre Hotels Group 16 8 FRHI 2,292 79.5% 287 come with fundamental dangers
9 Best Western 13 9 Swiss International 1,997 14.9% 105 and challenges. Another common
10 CityBlue 11 10 Mvenpick 1,866 86.4% 267 difficulty is that developers
Courtesy: W Hospitality Group typically dont initially engage
AccorHotels leads the pack for the first time, because of that deal in Angola. Without that, hotel management companies and
Radisson Blu Accra
they would have been down in 5th place, with around 2,500 rooms in their pipeline. But hotels are built without the proper
they did do the deal, and just beat Hilton Worldwide to first place. Carlson Rezidor have thought process.
low growth, just 5.5 per cent on 2015, but as noted above, they opened the most hotels Once again, though, for the
of any chain in 2015, eight hotels (Radisson Blu and Park Inn, with a total of 1,460 rooms), majority of the groups, the pros
thus reducing their pipeline had they not opened (but they did!), and were still in their outweigh the cons, and the
pipeline, their growth would have been 26.5 per cent. The chain signed seven new deals potential returns are just too
in 2015, with 1,400 rooms, so still made good progress. attractive to ignore.
Despite current economic
challenges in Nigeria, we are
We are optimistic about the hospitality industry in Africa, and AccorHotels aims to increase its sub- still keen on developing further
Saharan Africa network to 15,000 rooms in 100 hotels over the next five years. In parallel we will our brands in Lagos and Abuja
continue to reinforce our current, long-established leadership in North Africa with our 11,000 rooms as we see a sustainable growth
in 61 hotels through selective and strategic developments. in demand, says Francois
Phillipe Baretaud, Baudin, Senior Vice-President
SVP Development, AccorHotels Development for Fairmont Raffles.
Starwood is another group
going long on Nigeria into the
future, with a planned Westin due
Marriott International is committed to growth in Africa. We have a strong focus on countries with to debut in Abuja in 2022, if all
multiple hotel development opportunities, as well as countries that have potential for single-city goes according to plan, with Four
lodging development. Points by Sheraton properties due
to open in Benin City, Abuja and
Samir Baidas,
Chief Development Ikot Ekpene in the coming years,
Ramada Resort DarOfficer, Marriott International
es Salaam
as well.
Best Western is another
international group looking to add
to its Nigerian portfolio, but would
only confirm that it has signed
agreements for properties in both
17 Lagos and Abuja.
Carlson Rezidor, meanwhile,
could have one of the biggest
Nigerian portfolios in the future,
should their plans for further
properties in Abuja (Radisson Blu
and Park Inn by Radisson), Port
Hartcourt, Onitsha and Lagos
reach completion and add to their
approximately 18 months and Hotel Apo, a 60-room boutique- existing Nigerian properties in
soon to be announced. This will style hotel, under construction and Lagos and Abeokuta.
escalate our Nigerian pipeline to be launched in August 2017. Nigeria, like South Africa, has
hotels with an immediate four Stehlik believes that BON the market potential of offering all
projects, and a vast number to Hotels understands the Nigerian four of our brands with our new
follow. Currently, we will be landscape, along with the luxury brand Quorvus Collection
launching BON Hotel Stratton associated challenges. targeted for Lagos and Abuja, and
Asokoro in Abuja which is There has been a significant our new upscale lifestyle select
undergoing a complete multi- effect on certain of our hotels in Radisson Red brand targeted for
million Naira refurbishment of all Nigeria, especially those in the Lagos, says McLachlan. Also,
rooms and public areas, and BON oil regions, who rely on the oil our upper upscale Radisson Blu

48 | JULY2016 Visit businesstravellerafrica.co.za


brand in the three gateway cities take up a strong position in the There has been a significant
of Lagos, Abuja and Port Harcourt, region. effect on certain of our hotels
and our midscale Park Inn by Construction has begun on the
Radisson in the gateway cities and 147-room City Lodge Hotel Dar
in Nigeria, especially those in
10 of the 36 state capitals. es Salaam in Tanzania, with the the oil regions, who rely on
The last of the groups with
significant Nigerian pipelines
hotel expected to open in the
fourth quarter of 2017. The hotel
the oil industry, but the rest of
is Swiss International Hotels. will be the groups fourth in East Nigeria is extremely buoyant.
According to W Hospitality, it has Africa, joining Kenyas Fairview
nine properties planned for the Hotel, Town Lodge Upper Hill and
country. City Lodge Hotel Two Rivers. The
Two Rivers project in Nairobi is our particular quality, style,
EAST AFRICAN BOOM nearly 25% complete. This hotel size and price of hotel offering
Whilst Nigeria remains Africas is on track to open to guests this applies to Nairobi, Dar es
darling in terms of big in the second quarter of 2017. Salaam, Windhoek and Maputo,
picture planning and proposed Meanwhile, remaining regulatory says Clifford Ross, CEO of City
development, theres no denying approvals are being sought for Lodge. In addition, the targeted
the emergence of East Africa as the development of the 148-room countries in East Africa are
one of the continents development City Lodge Hotel Maputo in forecast to grow GDP by in excess
hotspots. Mozambique. The group hopes to of 6% for the next few years.
A number of groups are fighting be able to open this hotel in the So, why now for City Lodge,
for market share and deals in third or fourth quarter of 2017. which has previously focused on
the region, and one of the most All of the sites we have its 50-plus hotels in South Africa
significant moves has seen targeted are in capital cities where and been rather risk-aversive,
previously cautious South Africa- we have carefully researched in terms of taking up a position
based City Lodge Hotel Group and found a definite need for beyond South Africas borders?

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FEATURE HOTEL GROUPS IN AFRICA

Radisson Blu Maputo Radisson Red Cape Town

Radisson Blu Maputo

Our policy has not to be


aggressive, but rather to ensure
that we are investing in extremely
targeted sites which have long-
term potential to meet our return
requirements, says Ross. For us,
it is certainly not about quantity,
but definitely about quality as we
seek to build a niche footprint in
parts of East and Southern Africa.
We are not trying to match
international hotel groups our
strateg y is to take our well-
proven South African brands to
African cities which will embrace
our offerings.
Among those international
groups that Ross references
who also share an interest in
East Africa is Starwood. In its
pipeline are Four Points by
Sheraton properties in Nairobi, newer opportunities. governments proactive approach
Addis Ababa, Arusha and Dar es Moevenpick also has its eye to promoting business tourism
Salaam, which is also the location on Nairobi, with the Moevenpick set the scene for strong market
of the groups first African Hotel & Residences Nairobi in the growth, and we are well placed to
Element property a deal that sought-after Westlands district. capitalise on this positive trend.
has already been signed. Its standout features include a According to W Hospitality,
East Africa presents an revolving tower with panoramic Nairobi has jumped from ninth
exciting opportunity as a downtown views plus extensive place in 2015 to fourth place in
relatively unexplored frontier play dining, leisure and meetings 2016 with 2,666 rooms, an increase
with material resource potential facilities. of over 45%.
and stable and progressive The hospitality landscape Despite fears of oversupply
governments, says Starwoods in Nairobi is evolving with the (which may or may not come true),
Ahdab. Ethiopia is slated to be arrival of new design-led upscale hotel chains and investors are still
one of the worlds fastest growing hotels giving legacy properties a doing business there, says the
economies, whilst Ethiopian run for their money, says ODea. report. Some countries are doing
Airlines is Africas largest airline Whilst this has put pressure on better than others. Those such
with Addis Ababa as the hub, RevPAR performance in the short- as Nigeria, Angola and Zambia,
which could be the gateway to the term, the forecast upswing in each highly dependent on single
continent in many ways providing inbound arrivals and the Kenyan commodities for government

50 | JULY2016 Visit businesstravellerafrica.co.za


DISCOVER
WORLDWIDE
of Maputo only and Park Inn
by Radisson in select business
REWARDS
locations which already include
Tete and now target Maputo,
Pemba, Beira and Nacala.
Carlson Rezidor also has its eye
on Tanzania.
We have yet to break into
this country in East Africa, says
McLachlan. But Tanzania has
the market potential to offer three
of our brands, with Quorvus
Collection targeted for Zanzibar,
Radisson Blu targeted for Dar es
Salaam and Zanzibar, and Park
Inn by Radisson targeted for Dar
es Salaam and Arusha. FROM CAPE TOWN TO ZANZIBAR,
Elsewhere, Hyatt has one of the MARRIOTT REWARDS MEMBERS CAN
newest properties in Tanzania, NOW ENJOY FULL BENEFITS, INCLUDING
in the form of the Park Hyatt MEMBER RATES, FREE WI-FI, EARNING
Zanzibar, which opened in March
income and foreign exchange, are 2015, whilst the Hyatt Regency
AND REDEEMING POINTS AT ALL
growing slower than those such Arusha was initially slated to PROTEA HOTELS BY MARRIOTT
as Ethiopia, Kenya and Tanzania, open in 2016. Currently under AND AFRICAN PRIDE HOTELS
with much greater diversification construction, the latest projected IN SUB-SAHARAN AFRICA.
in their economies. opening date is 2018 and it will
Also in East Africa, Best be a 150-key hotel in central
Western plans to open Best Arusha. The hotel will be in close
Western-branded hotels in proximity to some of Africas
Ethiopia and Zanzibar, Best most famous natural landscapes
Western Plus properties in Kenya and national parks, including
and Ethiopia, and a Best Western Tarangire National Park and
Premier in Uganda all over the Mount Kilimanjaro.
next two years. Another international group
In turn, IHG would seemingly making its presence felt in
agree with Ahdabs view on Tanzania is Abu Dhabi-based
Ethiopia, as it has a Crowne Plaza Rotana. It is set to make its first
planned for that country, along foray into East Africa with a
with an InterContinental for 254-key hotel in Dar es Salaam.
Kampala in Uganda. According to W Hospitalitys 2015
Carlson Rezidor also has plans report, it is projected to open in
for Radisson Blu properties in 2017.
Uganda and Ethiopia, along with The hotel will include 191
a Park Inn by Radisson in Kenya luxury rooms and suites, as
and a second Radisson Blu in well as 63 serviced apartments,
the country, following on the spread across 24 floors. It will be
2015 opening of the groups first part of MNF Square Salaam, a
Radisson Blu in Nairobi. Carlson 65,000m 2 mixed-use project which
Rezidor also recently opened a also features retail and parking
new residence complex as part facilities.
of an expansion project at the Also on the horizon in East
groups Radisson Blu Hotel in Africa is a planned opening by
Maputo. The 54 studios and 53 South Africas Tsogo Sun Hotels.
one-bedroom apartments span 19 In August it plans to open a
floors and are equipped with free 150-room hotel in Tete, on a
high-speed wi-fi, a refrigerator, management contract.
microwave and washing machine.
Mozambique has the market ARE LOCAL GROUPS HAVING
potential to offer two of our THEIR LUNCH EATEN?
brands which are Radisson Blu And what about the African hotel
and Park Inn by Radisson, says groups?
McLachlan. Radisson Blu in Whilst the worlds big players
the capital and financial hub jostle for position and flex

JOINMARRIOTTREWARDS.COM
FEATURE HOTEL GROUPS IN AFRICA

Westin Cape Town

their muscles on the African


continent, are these home-grown
groups holding their own, or do
they run the risk of being over-
shadowed by their international
counterparts?
Theres no doubt that the local
groups just cant compete, in
terms of overall financial muscle,
but there does seem to be a lot
more caution, in terms of approach
and extending their African
footprint.
I would not say that African
groups are not as aggressive,
says Lukas van der Westhuizen,
Managing Director of Faircity
Hotels & Apartments. As long as
they have the financial backing
to take action when a lucrative
opportunity presents itself, they
actually have the advantage of
understanding the landscape
and the idiosyncrasies of doing
business in Africa.
Faircity is in the process
of creating a hotel fund with
strategic partners. The fund will
focus on South Africa over the
next 12 months, before looking at
the rest of Africa.
We are taking a measured
approach in our growth strateg y
to ensure that the properties we
bring on board will add value to
the Faircity brand, says Van der Tete property opening in August,
Westhuizen. already alluded to, whilst at
Also measured in their growth home, Tsogo Suns big project is
strateg y is Sun International, the development of a 200-room
which has shifted its focus to SunSquare hotel and a 300-room
gaming in the last two years, even StayEasy in the same complex in
though it retains iconic South Cape Town, which is scheduled to
African hotel properties such as open in September/October 2017.
the Table Bay in Cape Town and Also focusing on operations
the Palace of the Lost City at Sun closer to home is Peermont. The
City in the North West province. A group is currently in the process
R1bn ($67m) upgrade of Sun City of expanding its Metcourt hotel at
is currently underway, whilst a lot Khoroni Resort in Thohoyandou,
of the groups focus is also on the Limpopo by adding an additional Cresta Maun groundbreaking
Menlyn Maine project in Pretoria. 20 rooms. Further to that, its
When complete, it will feature an flagship property Emperors
urban entertainment arena with Palace, located next to O.R.
casino, convention facilities, and a Tambo International Airport, is properties that are located in
five-star luxury hotel. adding a new 100-key wing to the mining areas, so Peermont
Fellow South African Peermont Metcourt hotel aimed has focused on other market
heav y weight, Tsogo Sun, is primarily at the family and sports segments to realise growth in
currently developing a Southern markets with generous room our hotel and gaming divisions,
Sun Hotel in Accra, Ghana with configurations, comprising of new says Jakins. Some of our hotels
150 rooms and large conferencing king and twin bed configurations and casinos do rely on Chinese
facilities. The hotel is located in for a variety of new markets, as custom, which has been under
the Diplomatic Quarter and is well as a sky bar addition. some pressure, but for other
within seven kilometres of the Commodity prices have reasons such as availability of
airport. The group also has the definitely affected some of our visas and work permits.

52 | JULY2016 Visit businesstravellerafrica.co.za


few years due to the weak Rand.
Looking at South Africas other
big players, City Lodge appears
focused on its East African
expansion, but has also opened
new properties in South Africa, in
Pietermaritzburg and Newtown,
adjacent to the Johannesburg CBD.
Legacy Hotels & Resorts has
interests in Zimbabwe, following
the announcement in late-2015
that the group had signed with
African Sun to refurbish and
manage five properties Elephant
Hills Resort, The Kingdom at
Victoria Falls, Hwange Safari
Lodge, Troutbeck Resort and
Monomotapa Hotel.
Across the border in Zambia,
Cresta Hotels is looking forward
to the opening of Cresta Maun
Resort in Q1 of 2017, whilst the
group says it also has something
new up its sleeve in Botswana.
The market for home-grown
products is still there and with the
international groups being very
aggressive on 'asset light only our
model is a useful solution for local
owners, says Glenn Stutchbury,
CEO of Cresta Hotels.
Guy Stehlik of BON Hotels has
a similar view.
Theres definitely room for
both, he says. It is clear that the
Fiesta Residences (Accra)
large international groups have a
strateg y of having a presence in
the major cities. In other words,
they have one large hotel in the
major city of a country, whereas
we are happy to enjoy the mid-
market, smaller opportunities.
We believe that local companies
have an edge on their mid-market
international counterparts.

CONCLUSION
Either way you look at it, the
scramble for market share
and a presence on the African
continent will continue, as long
as the worlds hotel groups
Besides some activity in Cape I believe there are still good both international and local
Town, the South African hotel opportunities in South Africa, say continue to see long-term growth
development landscape can hardly Van der Westhuizen. Although and opportunity on the continent,
be described as buoyant, but the the economic climate is under taking a more long-term view,
country is still working toward pressure, business hotels will preparing to ride out the storm
overcoming the over-supply it continue to grow if they are and staying in for the long-haul.
experienced in the wake of the well-located and offer something
2010 Fifa World Cup. A struggling unique to the standard options Dylan Rogers
economy and poor projected growth in the market. I do believe that
is also not making the country an domestic and international leisure
attractive development location. travel will increase over the next

Visit businesstravellerafrica.co.za JULY2016 | 53


ADVERTORIAL

MICE in style
Enjoy everything that
Mauritius has to offer
The perfect MICE destination, combining quality, elegance and style!

J
ust a short flight from Mauritius as either a long-haul For MICE buyers, the national
South Africa, the exotic or short-haul destination, we carrier offers:
island of Mauritius is one of can deliver world-class, luxury B est group rates guaranteed
Africas tourism jewels, offering MICE venues and an incredibly D edicated account management
an abundance of scenic beauty, business-friendly environment in D edicated in-cabin seating at
hidden treasures and adventure. which to hold them. NO additional cost
This beautiful Indian Ocean island B randed headrest covers at
is truly yours to explore and ACCESSIBILITY minimal cost
experience. South Africans dont need to F ree luggage allowance of two
MICE buyers will see big arrange a visa for Mauritius
23 kilogram bags in economy
potential in Mauritius as it has the beforehand. Upon arrival at the
class and two 32 kilogram bags
infrastructure and superstructure airport, you will be issued with
in business class
to cater for MICE groups, not only a tourist visa that lasts for three
D edicated check in desk(s) for
during low season but all year months. Travellers must have a
groups
round. valid passport, return ticket and
As a MICE-friendly destination, confirmation of address where G roup business class lounge
Mauritius possesses all the key you will be staying on the island accesses at a discounted fee
ingredients that are required to make this process quick and H elicopter sightseeing visits,
for successful meetings, simple. heli-lunches or heli-golf
incentives, conferences and There are a number of flights excursions at preferential group
events. The quality and variety of per week out of Johannesburg, rates
accommodation, the attention to Durban and Cape Town to F ree carriage of golf clubs, up to
detail in service delivery, state- Sir Seewoosagur Ramgoolam 23 kilograms per bag
of-the-art conferencing venues, International Airport on Air
and the vast number of additional Mauritius, South African Airways ACCOMMODATION
activities on offer all guarantee and British Airways Comair. The island offers a large choice
genuine value for money. The national carrier, Air of accommodation, with a strong
Whether you are interested Mauritius, operates daily emphasis on luxury properties
in buying for large, medium or flights from Europe and other and a wide range of luxury hotel
small groups and are looking at destinations. brands and boutique offerings.

54 | JULY2016 Visit businesstravellerafrica.co.za


CONFERENCE FACILITIES
Mauritius has an advantage over
other MICE destinations in the
Indian Ocean in that it houses the
regions largest and most modern
convention centre: the Swami
Vivekananda Conference Centre in
Pailles.
This centre provides all the ACTIVITIES
facilities needed for large, The island boasts a wide variety of from May to December, when the
international conferences activities that can be specifically weather is cool, dry and sunny.
accommodating up to 5,000 people geared around MICE groups January to March is cyclone
at any one time. ranging from golf to adventure season and although this is not
To date, it has hosted many sports such as quad-biking, optimal beach weather, there are
international conferences, trekking, mountain biking, zip- a host of other activities to engage
including the UN Small Island lining, hunting, kite-surfing, in, such as Marlin fishing, as well
Developing States Conference. parasailing, canoeing and sky- as the many cultural festivities
Other venues include the diving. that take place during this time.
International Conference Centre The island also offers countless Kite surfers can enjoy the best
in Grand Bay (up to 600 people) stunning outdoor locations for conditions during July and August
and the Freeport Exhibition in Mer team-building exercises. when the wind is at its strongest
Rouge (up to 1,000 delegates). on the east coast.
Many Mauritian hotels also WHEN TO VISIT
offer conferencing facilities and Mauritius has a tropical climate, CONTACT
can cater for up to 800 people at with warm weather all year round. mauritius@meropa.co.za
a time. The best time to visit the island is tourism-mauritius.mu C

Visit businesstravellerafrica.co.za JULY2016 | 55


4 HOURS IN

Kimberley

Old Town
To get a look at the Big Hole you have to make your way through the Old Town, a collection of historic
buildings that have been brought back to life and serve as a visual reminder of the New Rush era.
Here youll find a selection of shops and food outlets housed in restored and preserved Rush Era
buildings, including a church built in Europe and shipped to Kimberley, Barney Barnatos boxing
academy, the diggers sleeping quarters and the De Beers railway coach, which Cecil John Rhodes
used for the commute between Cape Town and Kimberley. In Old Town, you can watch a 20-minute
video of the towns history, take an underground tour of the mine, and visit the diamond vault.
Entry into Old Town costs R90. Tours cost extra.

The Big Hole


When diamonds were discovered in Kimberley in 1871,
prospectors flooded into the area to make their fortune.
The result of the fevered excavation is 365-metre deep pit
and it is a sight to behold. During its 43 years in operation,
the mine produced 2,722 kilograms of precious gems,
including 'the 616 Diamond', the largest uncut diamond
in the world and named for its carat size. The mine was
closed in August 1914, but the Big Hole remains.

The Occidental Bar


Often called Kimberleys hideaway by patrons, The Ox, on
Tucker Street, is an owner run and managed pub with rave
reviews from guests. Wet your whistle with a craft beer and
satisfy your hunger with a limited, but fabulously tasty, pub menu.
The restaurant is open from 10h00 to 22h00 during the week,
10h00 to 02h00 on Fridays and Saturdays, and 10h00 to15h00
on Sundays.
kimberley.co.za

56 | JULY2016 Visit businesstravellerafrica.co.za


Vintage tram
In its heyday, Kimberley was considered to be a town
of bright lights, with prospectors from across the globe
determined to strike it rich in the diamond fields. Its bars,
dance halls and gambling facilities drew in an interesting mix
of people. By 1887, when the tram first started transporting
people to the ever-expanding diamond mine, the town
was flourishing. Today, you can take a 20-minute ride on
the vintage tram around the Big Hole and get an idea of
what it was like for the original diamond miners who were
transported to work each morning. The tram is painted
orange, as it has always been, and has been well maintained
with its original wooden seats and steering on both sides.
Tickets are sold on the tram, which starts its journey at the
Kimberley Mine Museum. The tram heads from the museum,
past historical features such as the original mining shaft and
the West End bar. It stops at the Big Hole viewing platform,
where you can disembark for a look into the man-made
wonder, before making its way back to the museum.
The tram runs from 08h00 to 17h00, seven days a week and
costs R10 per person.

William Humphreys Art Gallery


Situated in the Civic Centre, the WHAG is considered one of the finest art museums
in South Africa. Its art collections include old master drawings and prints and 17th
century paintings, ceramics, sculptures, works of art on paper and many paintings.
At present the art gallery concentrates on collecting South African works of art. Apart
from its primary function as a museum of art, this gallery serves the community as an
educational and cultural centre, with activities which include temporary exhibitions, art
workshops for children, development stimulation classes for pre-school children, craft
workshops for unemployed women, lectures, video shows and concerts.
The museum is open from 08h00 to 16h45 during the week, 10h00 to 16h45 on
Saturdays and 09h00 to 11h45 on Sundays and public holidays. Entry costs R5.
www.whag.co.za

McGregor Museum
For an overview of the evolution of the people in the
Northern Cape, stop in at the McGregor Museum.
Among the exhibits is an AV display of the Apartheid
struggles leading up to the introduction of democracy
in South Africa and military displays on the upper level.
The museum was founded in 1907, after the widow of
a previous mayor of Kimberley, Alexander McGregor,
donated the necessary funds.
The museum is open from 09h00 to 17h00 from Monday
to Saturday, from 14h00 to 17h00 on Sundays and 10h00
to 17h00 on public holidays. Entry costs R25.
museumsnc.co.za

southafrica.net asata.co.za
Visit businesstravellerafrica.co.za JULY2016 | 57
TRIED & TESTED/Hotel
BLOEMFONTEIN, SOUTH AFRICA

City Lodge Hotel Bloemfontein


BACKGROUND: City Lodge is South accommodate my large laptop), sitting BUSINESS & MEETING FACILITIES:
Africas largest hotel group, with 54 area with two-seater couch and coffee The hotel has a boardroom and a
hotels in the country across its Road table, small flat-screen T V with selected conference room called the 'Team Room',
Lodge (one-star), Town Lodge (two- satellite channels, tea/coffee station, air- which seats 35 people cinema-style.
star), City Lodge (three-star) and conditioning, and a full-length mirror. This room has a LCD screen with laptop
Courtyard (4-star) brands. It also has I particularly liked the large built-in connectivity, wireless internet access and
Town Lodges in Gaborone and Nairobi work station which stretched along a speaker phone for conference calls. The
and owns the Fairview Hotel adjacent the wall to a point under the T V. The hotel offers various food and beverage
to the Nairobi property. The group workstation offered plenty of work space options on request. There are also fax
plans to open City Lodges in Dar es and was accompanied by a reading light, and photocopy services available, whilst
Salaam, Nairobi and Maputo in 2017, telephone and plug points. I tested the the hotel also has same-day laundry, dry
with the Maputo property still subject wi-fi and it was easy to connect to with cleaning and complimentary parking.
to regulatory approval. A Town Lodge is good speed. There was also an extra
LEISURE FACILITIES: Whilst the
expected to open in Windhoek, also next blanket in the cupboard, which was
focus is clearly on efficient business
year. City Lodge Hotel Bloemfontein useful on a chilly Bloemfontein night.
travel, City Lodge Hotel Bloemfontein
opened in 1989. The bathroom was made up of a single
does have a fitness room and a
vanity, separate bath and a large walk-in
swimming pool on the property.
WHERE IS IT? The hotel is in the shower. The water pressure could have
heart of Bloemfontein, opposite the been a little stronger.
VERDICT: It may be a three-star
Mimosa Mall, on the corner of Nelson property, but City Lodge Hotel
Mandela Drive and Parfitt Avenue. It RESTAURANTS & BARS: The hotels Bloemfontein covers all the basics and
is also within walking distance of the restaurant sits in the lobby area. I then some. More importantly, it looks
local Medi Clinic hospital, the zoo, Free skipped dinner, as I arrived late in like it has gone out of its way to be the
State Stadium, the University of the Free the evening (the hotel has 24-hour best three-star it can be. No bells and
State, the Appeal Courts of South Africa, check-in), but did take in breakfast the whistles, but the basics I talked about
and a variety of restaurants. following morning. On offer was a fairly are all of the highest quality. Dont
extensive spread, covering many hot look any further if in Bloemfontein on
ROOM FACILITIES: City Lodge Hotel and cold options. I opted for scrambled business.
Bloemfontein has 151 rooms, kitted eggs, pork sausages and bacon, which
out with either double or twin beds. were all good. The service was snappy Dylan Rogers
My ground floor room looked out onto and attentive, and what I liked is that
the swimming pool and garden area the coffee was served piping hot and a
and featured a comfortable double refill was quickly forthcoming. I also
bed. What struck me was just how noticed at checkout that complimentary CONTACT
clean the room and bathroom were, coffee, rusks and muffins were available A: Cnr Nelson Mandela Drive & Parfitt
with a distinctive glint to just about adjacent to reception convenient Avenue
everything in the room. Otherwise, for business travellers on the go. City T: +27 51 444 2974
the basics were all covered, with a Lodge Hotel Bloemfontein also has the E: clbloem.resv@clhg.com
luggage stand, sufficient hanging space, Sundowner bar in close proximity to the W: clhg.com
a small safe (unfortunately, it couldnt restaurant.

58 | JULY2016 Visit businesstravellerafrica.co.za


TRIED & TESTED/Flight
JOHANNESBURG - PARIS

Air France B777-300 Business Class


BACKGROUND: Air France flies from passengers in the La Premire (first with pasta, asparagus and a tarragon
10 African cities to Paris-Charles de class) cabin. Flights arent called before tomato sauce. Other options included
Gaulle; dubbed the most powerful hub boarding though, so it pays to keep an beef, fish and a vegetarian course.
in Europe thanks to its thousands of eye on the clock. Premium passengers When it was time to sleep, the bespoke
daily connections. Since 2003, the carrier and top-tier members of the Flying Blue duvets and feather down pillow added
has partnered with Amsterdam-based programme should enjoy a Sky Priority an extra touch of luxury to the two-
KLM, and together the two airlines lane for faster boarding, but this was metre fully-flat bed (the A380 seats are
cover 232 destinations worldwide. Air unfortunately nowhere to be seen. Once angled-flat), which has good space at
France-KLM jointly offers the Flying on board, after a short delay, the slick both shoulders and feet.
Blue loyalty programme. and professional Air France service As usual, I skipped breakfast in favour
Air France recently upgraded its daily returned. of the express coffee and pastry service
service into Johannesburgs O.R. Tambo that is available until 30 minutes before
International Airport, offering two THE FLIGHT: The new Air France landing.
flights per week using a Boeing 777-300 cabins are, simply, outstanding. Unlike
fitted with the latest generation of La the A380, the 1-2-1 herring-bone layout ARRIVAL: We landed minutes ahead of
Premire, business, premium economy allows for direct-aisle access from every schedule at a rainy Paris-CDG, where
and economy cabins. The remaining five seat. I favour a window seat for privacy, the helpful ground staff directed me
services per week are operated using an but even on the aisle the high seatbacks towards my transferring flight to Lyon.
Airbus A380. offer an elegantly padded cocoon that
blends both personal space and a sense VERDICT: While the A380 offers an
CHECK-IN: A large sign informs of seclusion from the bustle of the cabin. excellent premium class experience, the
passengers that they will be flying the Theres plenty of storage space around new-generation Air France cabins on
latest generation Air France cabins, each seat, which also boasts a dedicated the 777 are a dramatic leap forward.
giving the check-in process a cheery overhead compartment. With any luck theyll be flying to more
start. Id checked-in online, so the bag- The smiling hostess whisked away African cities, on more flights, in the
drop formalities were quickly dealt with. my coat and offered a selection of near future. C
Kudos to the staff for informing me the international newspapers. There was a
bags had been checked through to my USB point to power up my phone, and I Richard Holmes
final destination, Lyon. set my laptop to charge using the in-seat
power. No work tonight though: the 16-
LOUNGE & BOARDING: The inch HD screen beckoned, as well as an
expected evening queues saw a slight impressive food-and-beverage offering.
delay in clearing passport control, but 15 That began with champagne served
minutes later I was happily settled in the before take-off, with menus offered as
SLOW Lounge. Air France-KLM flights we reached cruising altitude. The five-
now use the excellent SLOW lounge course menu includes an amuse bouche
situated midway in the ORTIA terminal and starter, as well as cheese and
building. No complaints here, as the dessert, with a choice of four dishes for CONTACT
food, drinks and facilities are faultless. the main course. I opted for the daily W: airfrance.co.za
Theres even a separate VIP Room for special of honey-roasted chicken breast

Visit businesstravellerafrica.co.za JULY2016 | 59


Q&A

A viable alternative
Cruising is currently a top option for incentive travel, but it has so much more to offer the corporate world,
according to George Argyropoulos, CEO of Cruises International, who explains the advantages of a f loating
conference venue.

Q: How would you describe the from. Outside of the conference, Q: Which other African countries
George current corporate travel attitude couples can enjoy the cruise and have vibrant cruising markets?
Argyropoulos towards cruising in South Africa? all it has to offer. A: : Presently we see good growth
CEO: Cruises A: I believe that we have a in Nigeria and Kenya.
International reasonably healthy attitude Q: Are you able to provide a
towards cruising. The corporate percentage split of what business Q: Have you added any new
cruise is mainly focused on you receive from the leisure and ships to your portfolio?
corporate incentive travel. Cruises corporate markets? A: Theres the Ovation of the Seas
International has the highest A: It is in the region of 60/40 in and Harmony of the Seas from
production of corporate incentives favour of leisure. Royal Caribbean. The Seabourn
compared to our peers in the Encore will come on-line in
EMEA region. Incentive packages Q: What are currently the most December. The Crystal Esprit,
also represent a high percentage popular requests from the our 62-guest luxury yacht in the
of our total production in South corporate market, in terms of Seychelles and the Crystal Mozart,
Africa. Having said that, there their expectations on board? the largest and most luxurious
is always more room for growth. A: Passengers like large ships ship in the Danube have recently
Incentive houses embraced which offer a variety of leisure been added.
cruising very enthusiastically options, balcony staterooms,
very early on and have grown conference facilities, private dining Q: What are the biggest
significantly with us. venues for gala or award-giving challenges facing the cruising
dinners and open bars. Weve also industry?
Q: Do you think you face a seen an increase in requests for A: From a sales perspective, it is to
challenge in educating the full-ship charters which offer many help consumers, corporate decision
corporate travel industry as to the benefits, including freedom of use, makers and travel professionals
benefits of cruising? personalisation, the opportunity overcome their misconceptions
A: Generally speaking travel for branding and being financially about cruising and unlock the
agencies specialising in corporate sound. We can charter a luxury multiple benefits cruises offer
travel do not promote cruising. yacht for groups from five couples the holiday maker and corporate
Not as an incentive, conference to a Windstar yacht with 125 traveller, as well as the massive
or a bleisure option. I have suites. One cruise executive loves earning potential and ease of
always wondered and never got a saying: Charter is smarter. planning and peace of mind it
satisfactory explanation as to why offers to travel professionals.
corporate agencies do not go after Q: How important is wi-fi to these
the conference/incentive/bleisure/ corporate travel passengers? Q: What international trends
leisure/holiday needs of the same A: Very. On our latest ships, the have you noticed in the cruising
corporate clients. internet is faster than what is space?
available in most cases in South A: On the corporate side,
Q: Why do you believe theres Africa. we see an increasing number
a good fit between cruising and of companies taking their
conferencing? Q: What effect has the Rand- conferences and incentives to
A: It has been proven that Dollar exchange rate had on sea and rivers. We also see that
a cruise offers the highest business? they enjoy all the activities and
motivation to any audience A: As budgets are Rand-based, the multiple entertainment options the
compared to any other travel or sharp deterioration of the exchange ships offer. At the same time we
merchandise reward, provided rate pushed overseas travel beyond see an increase in the demand of
at a predictable and affordable the reach of certain corporations. more intimate and sophisticated
cost to the corporation. The all- However, cruising is now a more experiences offered by our luxury
inclusive nature of a cruise (meals, sensible and affordable option than brands, such as the Crystal Esprit
accommodation, activities and any other land based incentive or in the Seychelles, the yachts of
entertainment) makes for a very conference overseas. Seadream, and others. Their
tempting cost/value proposition. size, all-inclusive offering and
In addition, there is no need to Q: What are the most popular luxurious lifestyle are becoming
organise special events, dinners, destinations for the South African very popular with corporate
entertainment, hall and AV hire corporate travel market? groups and large friends and
as all these elements are included A: Primarily the Mediterranean, family groups. C
in the price of the cruise. At the followed by the Caribbean, Dubai
same time, spouses have plenty of (Arabian Gulf ), Alaska and the
amenities and activities to choose Far East.

60 | JULY2016 Visit businesstravellerafrica.co.za


Q&A

Holding firm
West Africa has endured a difficult few years, largely off the back of the Ebola crisis and the plunging global
oil price. But the region remains an African business travel hotspot, with Ghana one of the leading players in
West Africa. The Moevenpick Ambassador Hotel has been one of the standard bearers in Accra, and relatively
recently received some competition in the form of the Kempinski Hotel Gold Coast City, which opened down
Axel Hauser the road at the end of 2015. General Manager Axel Hauser responds to Business Traveller Africas questions.
General Manager
Moevenpick
Ambassador Hotel Q: How does the 2016 Accra hotel opening in the region? gardens, with views to the sea and
Accra business travel market, in terms A: Mvenpick Hotels & Resorts is the friendly efficient service.
of bookings and overall operating actively seeking hotel management
climate, compare with that of opportunities across the continent. Q: How important are conference
2015? We are pleased to announce bookings to your bottom line?
A: The Accra business travel three exceptional projects and A: Very important, especially
market is not immune to the expect to announce several as conference delegates use
overall global business climate more in the coming months. the bedrooms, meeting rooms,
and we do see shifts in the market Our third property in Morocco, restaurants and bars. We have
segmentation. Significantly, we Mvenpick Hotel Mansour extensive conference facilities and
have experienced on the back of Eddahbi Marrakech will open 501 have worked very hard to build
new branded hotels opening in the five-star rooms in September, our reputation as a world-class
city, strong growth in the MICE after an extensive renovation and venue hosting the majority of the
market, as Accra is seen as a safe, expansion programme. Mvenpick high profile conferences in Accra
stable destination and now with Hotel & Residences Nairobi is which attract visitors, investors
a range of hotels to suit different a 15-storey property situated in and heads of state from around
budgets. the Kenyan capitals sought-after the globe.
Westlands district with standout
Q: How has the drop in the features including a revolving Q: What sort of conferences are
international oil price affected tower with panoramic downtown being booked with you?
your business? views plus extensive dining, A: The major sectors are
A: A healthy oil price is certainly leisure and meetings facilities. energ y, oil and gas, banking
beneficial for a country like Mvenpick Hotel and Conference and investment and agriculture,
Ghana, but despite current oil Centre Abuja will take advantage although IT and telecoms,
price challenges we see growth in of Nigerias status as Africas mining and construction are also
other sectors including banking, largest economy. significant.
finance, energ y, IT and telecoms.
Q: Are there any plans to Q: Are there any international
Q: Has the economic slow-down renovate the hotel or upgrade its hotel trends you have picked up
in Nigeria had any impact on offering in the near future? on that you might apply to your
business in Ghana? A: Yes, we are working on hotel in the future?
A: Yes. As the largest country in plans to ensure we maintain the A: Green meetings is a growing
West Africa, economic changes high standards the Moevenpick trend and we are pleased to say
in Nigeria certainly impact on Ambassador offers. Not all are that we are leading the way in
business in Ghana. Conversely, seen by the guests as behind Ghana as a Green Globe certified
not all of them are bad for the the scenes we are upgrading hotel. We have implemented
local hotel industry. Investors like technolog y, improving hundreds of eco-friendly measures
stability and this makes Ghana infrastructure, security and our which are monitored and tracked
an interesting prospect, bringing impact on the environment. All by the certifying body to ensure
business to Ghana and to the the plans aim to give our guests our delegates know that we are
hotels. a more seamless and enjoyable not just looking after them, but
experience. also the environment. C
Q: Is West Africa still fighting
the international perception that Q: What response do you receive
Ebola is a threat to travellers? from guests to your Executive
A: Not that I am aware of. Ghana Club floor?
was not affected by the virus and A: An excellent one! We monitor
business returned to normal from and track feedback from all our
the start of 2016. guests and from the comments
we know they especially enjoy the
Q: What is the likelihood of view from the Executive Lounge
another Moevenpick-branded balcony which overlooks the lush

Visit businesstravellerafrica.co.za JULY2016 | 61


PEOPLE ON THE MOVE

Chief Operating Mobius Consulting and an associate General Manager


Officer director at accounting and business Tsogo Sun has
Premier Hotels & advisory firm KPMG in Johannesburg, appointed Linda
Resorts, has recently specialising in IT security and business Reddy as General
appointed Sigal Geva continuity. He was with KPMG for Manager of Southern
as its Chief Operating more than 11 years. Sun Montecasino.
Officer. In her new She started her
role, Geva will be Social Media journey with Garden
drawing on her 12 Manager Court, and Tsogo
years of experience in the hospitality Sun, in 1998 at the then Holiday Inn
Seishane Leshaba
industry, during which she has been Garden Court in South Beach as a
has been appointed
involved in overseeing the daily Guest Services Attendant. In 2005,
as the PR and Social
operations of the Premier Hotels & Reddy moved to the Garden Court
Media Manager for
Resorts groups marketing and human Morningside as Assistant General
Tsogo Sun KZN Manager and was promoted to General
resource departments, and played a
region. Leshaba has Manager at Garden Court Sandton
key role in strateg y development. As
a National Diploma in Public Relations in 2007. Reddy is a certified Hotel
COO she will be co-ordinating all of
Management from the University of Administrator with a Masters diploma
the executive functions across the hotel
Johannesburg. Before joining Tsogo in Hotel Management from eCornell
chain. Highlights of her career have
Sun, she was the PR and Social Media University.
included growing and developing the
Manager for Yum Restaurants, KFC
companys permanent staff compliment,
Africa and PR Manager for Playmakers Deputy General
structuring the employment equity
Sponsorship and Marketing Agency. Manager
and skills development plans of all
Leshaba has also worked for Jenni Tsogo Sun has
properties within the groups portfolio
Newman Public Relations Agency, appointed Bilal Essop
and implementing Broad-Based Black
Magna Carta Public Relations and Plato as the Deputy General
Economic Empowerment verification.
Communications in PR and account Manager of The
executive roles. Palazzo Montecasino.
Country Manager
Essop joined the
RwandAir has
Community group in 2009,
appointed Thembela
Specialist starting in the front office and working
Dladla as the new
his way through all departments. In
Country Manager for Ofentse Maloba
2010 he joined Southern Sun Grayston
South Africa. Dladla has been appointed
as Assistant Front Office Manager. A
is well versed with at Tsogo Sun's
year later he joined Intercontinental
the aviation industry head office as the
Johannesburg Sandton Towers and then
having spent 11 years Community Specialist, moved to Southern Sun Montecasino
at SA Express, where his last position handling community as Front Office Manager and later
was Country Manager for Namibia and management for Tsogo Suns social transferred to Housekeeping. He then
the DRC. In all Dladla has been in the media channels and content production. moved on to Garden Court Sandton as
travel industry for 13 years including Maloba has been with Tsogo Sun since Deputy General Manager. Essop moved
two years at Thompsons Tours. He also May 2014, where, as the multimedia across to the Rooms Division at the
holds a B.Com Honours in Transport intern, he was charged with content Palazzo and then to the Deputy General
Economics, a Bachelors in Transport production for the group. Maloba has Manager position.
Management as well as a Tourism a certificate in video production and
Management Diploma. Dladla will have a diploma in animation from Boston Executive Chef
overall responsibility for all aspects of Media House. Southern Sun Pretoria
the local RwandAir online operation has appointed Patrick
working in close collaboration with General Manager Ndukuya as its
Holiday Aviation, the airlines GSA in The Timbavati Private new Executive Chef.
South Africa. Nature Reserve Ndukuya started
recently appointed his career in the
Divisional Director Bryan Havemann kitchen of the then
City Lodge Hotel as the reserves new Transvaalse Suiker
Group has appointed warden and General Kooperasie Beperk in Malelane. After
Ryan Ruthven to Manager. Havemann six years, he joined the Malelane
the newly created Sun InterContinental hotel as the
began his career
position of Divisional Executive Sous Chef, and then moved
in the Kruger National Park as a
Director: Information to Tsogo Sun as Executive Chef at
researcher/field assistant, before being
Technolog y. In his the Southern Sun Emnotweni hotel.
promoted to Senior Wilderness Trails
new position, Ruthven The next two decades saw Patrick in
Ranger and then Senior Section Game
will be a member of the groups various Executive Chef positions in
Ranger. Thereafter he was appointed
Executive Committee, signifying the Mpumalanga and Pretoria. After a two-
as National Director of Conservation
importance that is placed by the group year stint at Tsogo Suns Emnotweni
for WESSA. After four years he joined Casino and Entertainment Centre, he
on ITs role in corporate governance
African Parks and became the CEO rejoined Southern Sun Pretoria.
and operational efficiency. A B.Com
of Akagera Management Company in
Honours (Informatics) graduate from
Rwanda where he was responsible for
the University of Johannesburg, he
the total management of the Akagera
was previously principal consultant at
National Park.

62 | JULY2016 Visit businesstravellerafrica.co.za


Recognising
excellence at South
Africas premier
business travel event

Conference & Awards 2016

5th annual Business Traveller Africa Awards


Recognising excellence in African business travel
Categories cover airlines, hotels, car rental, TMCs, conferencing, forex and more
Content looking at pertinent African business travel issues

Date: 1 September 2016 | Venue: The Maslow, Sandton | Time: 07h30 until 12h30

Contact: Dylan Rogers: +27 71 670 6667 / dylan@thefuture.co.za


Pierre Grobler: +27 82 900 4026 / pierre@thefuture.co.za
BTE139

Visit businesstravellerafrica.co.za JULY2016 | 63


BITE WITH THE EDITOR

Spreading its Wings

Themba By its own admission, South African travel management company Duma Travel has for some time been
Mthombeni heavily reliant on government business. But the time has come to diversify, and as CEO and founder T hemba
CEO: DUMA TRAVEL Mthombeni explained to editor Dylan Rogers over coffee in Johannesburg, this TMC has big plans that
extend well beyond South Africas borders.

T
hemba Mthombeni is a model Duma Travel will adopt, as For now, though, the emphasis
straight talker. there are different approaches to is on developing a robust African
Hes got no problem rolling out strateg y such as what strateg y that will see Duma
admitting that as a black-owned the TMC is attempting, with some attempt to compete with the
South African TMC, Duma Travel big international brands going other big international TMC
is an attractive proposition as a for the franchise approach, as brands that enjoy a presence on
supplier to the countrys public opposed to the wholly-owned or the continent.
sector. But hes also smart enough partner model. Our slogan is taking the
to know that Dumas sustainability What route is Duma going? tough out of Africa travel, says
needs to be built on a more Our model is putting in robust Mthombeni. We do that by
diversified offering. solutions to sort out a problem, ensuring we assess the risk
Weve started to realise that whether youve got a problem before the guys go there. But if
BEE on its own is not going to win or not, says Mthombeni. The they get into any trouble while
business, he says. Weve got to longest part of our strateg y is they are there, we are able to
offer our clients something extra. going out to identify suitable evacuate them. So, its also
That something extra, according partners. These are the guys about risk assessment and risk
to Mthombeni, is an African that culturally, structurally, management.
strateg y. Or, in the Duma CEOs technologically, we can actually do Duma is in the process of
words, a serious African travel business with. assessing where the companies
strateg y. Its not rocket science or they want to deal with are going
We want to be known as breaking news that heaps of and putting an array of suppliers
experts in Africa travel and opportunity exists beyond South together in those countries.
experts in specific industries, Africas borders, particularly with Were tracing their footprints
says Mthombeni. Weve targeted the countrys current economic and negotiating good deals with
mining and construction, financial woes and the more favourable them, and ensuring weve got
services, professional services, growth rates in other parts of the payment relationships, says
and pharmaceuticals. We are continent. Further to that, South Mthombeni. We are looking
developing products that target the Africans are notoriously gun shy at payment solutions and
specific needs of these industries. regarding travel into the rest of communication solutions in
In terms of the African strateg y, Africa, particularly those with little terms of telephony and data.
Mthombeni says that Duma has or no experience of it. What is clear is that this
identified 16 African countries Mthombeni still believes there is is not something Mthombeni
and its no surprise that business opportunity in South Africa, citing and Duma are going into with
travel hotspots such as Ethiopia, the corporate sector as an area of a half-hearted approach. One
Nigeria, Angola, Rwanda, the DRC, untapped potential for Duma Travel. gets the sense that Duma has
Mozambique, Kenya, Tanzania, Were currently taking a very done its homework, not rushed
Uganda and Ghana are on that list. small piece of the cake, he says. into this new approach, and
Weve gone deeply into Weve got a massive untapped has steadily been putting all
analysing the footprint of the guys market there and its a matter of the pieces together to ensure it
that we want to deal with, says what narratives and conversations goes to market with something
Mthombeni. Were already rolling were going to have with our compelling.
out large pieces of our strateg y and clients. That is the key for us. Ive Or, in Mthombenis words: Its
almost everything will be in place got so much confidence in South an array of services weve put in
by the end of July. Africa and potentially were well place to ensure that we take the
Im curious as to what sort of positioned. tough out of Africa travel. C

64 | JULY2016 Visit businesstravellerafrica.co.za


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