Preferente especial WTM 2014

In summer 2012, the crisis at Thomas Cook, the second largest European tour operator, was so serious that the chairman of the board of the world’s oldest tourist business Frank Meysman was so desperate seeing the end of the company close at hand that he did a crazy thing: he appointed as chief executive Harriet Green, a woman who had boldly

cold-called him and told him she wanted to be the boss. A company of its importance would never have done such a thing in a normal situation, and instead would have asked a “head-hunters” organisation to find a proven administrator. As it was, the future of the tour operator was placed in the hands of this Medieval History graduate. ■ Page 6

F or the President of the Tourist Council of the Confederation of Andalusian Businesses (CEA), Miguel Sánchez, the figures don’t add up. “The number of visitors has increased, but the number of tourists staying at unlicensed

establishments and apartments has also increased, and this is seriously damaging the hotel industry, particularly during the summer season”, he stated. Although “the number of visitors does not match the hotel occupancy rate”, the complaint is still not widespread, and has gone unnoticed especially after the good figures in May and June. But the discontent is starting to increase. ■ Page 4

The threat of illegal holiday homesRegional governments adopt arbitrary

legislation trying not to lose votes

Our business is one that can change suddenly and modify completely not only our model, but also the way we do things, with a direct effect on our profitability and our position within the market.” This statement wasn’t said by the owner of a small regional travel agency, or by the CEO of one of our big chains, or by a new company trying to succeed. ■ Page 8

Online oligopoly fears for its future

Tui and Thomas Cook are back on track

World Travel Market 2014, a unique opportunity Considered the world’s leading event for tourism, the World Travel Market is a unique opportunity for professionals working in this industry. The attendance to this fair grows

every year, and in 2013, with over 50,000 participants from all over the world, it generated sales for over 2,200 million Pounds.

Airlines, keepto your planes

Air France, All Nipon Airways, Japan Airlines, Air Jamaica, Air Europa and Avianca have a lot in common, other than their planes. All these airlines have tried –with more or less success– to dabble in the hotel industry. ■ Page 10-11

preferenteWTM (WORLD TRAVEL MARKET) SPECIAL I November 2014

2014 I WORLD TRAVEL MARKET SPECIAL I PREFERENTE I 3

Published by: KBA S.L.C/ Francesc de Borja Moll, 18, entlo.07003 Palma de MallorcaIslas Baleares (España)[email protected]

Publisher and Editor: RAFAEL CABALLERO

Assistant Editor: Eduardo Suárez del Real

Co-ordinator: María Luz García

Writers: Natalia Blanes, Rafa Fernández, Manuel Suárez, Charo Hierro

Translation: Carolina Smith de la Fuente

Distribution: Analía Malagrino, Karina González, Pablo Fernández

Administration: Teresa Llabrés

Advertising: Ana Gómez

Printing, layout and design: Gráficas Planisi S.A.

INDE

X

preferente

6 Tui and Thomas Cook are back on track

8 Online oligopoly fears for its future

12-13 Madrid, World Leisure Centre

14-15 The twilight of Mallorca’s small hoteliers

16 Turkey wins the golf tourism over Spanish suffocated courses

22 IAG is getting serious

22-23 Big chains agree on prioritising Dubai

27 Record numbers of European tourists visiting the Dominican Republic

36 Mintur is expecting over 3 million tourists in 2014

The threat of illegal holiday homes

Airlines, keep to your planes

The Dominican Republic, captivating

4

10-11

26

By Jaime Amador

F or the President of the Tourist Council of the Confederation of Andalusian Businesses (CEA), Miguel Sánchez, the figures don’t

add up. “The number of visitors has increased, but the number of tourists staying at unlicensed establishments and apartments has also increased, and this is seriously damaging the hotel industry, particularly during the summer season”, he stated. Although “the number of visitors does not match the hotel occupancy rate”, the complaint is still not widespread, and has gone unnoticed especially after the good figures in May and June. But the discontent is starting to increase. Only in the Canary Islands, it is estimated that over 53,000 families are renting their apartments, of which 5,000 are advertised in the same platform. In the whole of Spain, the Government has identified

200,000 apartments, although experts believe the real figure is higher.

In any case, what we cannot deny is that we are facing an emerging phenomenon for which we still don’t have a unique and clear answer. We can’t forget that the owners of said apartments and houses are eligible voters, and there are many of them, what confuses the political parties.

Nevertheless, the evidence that shows we are facing a very serious problem, for which we only have a few incoherent answers, is overwhelming.

Two years ago, the Spanish government changed the Urban Tenancy Act and added, among others, a clause stating that all holiday rentals were not covered under said Act. It was up to the regional governments to decide how to regulate a sector that, by then, was already out of control. Today, we seem to be on the verge of a crisis we should start to worry about, as three delicate issues seem to merge.

One the one hand, the large number of owners of these apartments and houses, who have electoral influence and for years have not been able to earn any profits from their investments; on the other, the emergence of online platforms that connect tenants with owners, so this mediation is much simpler and is guaranteed; and, last, the regional chaos, as every regional government has it’s own laws, making Spain seem like a big joke.

But the problem is more serious, as some hotel owners have announced. We are not talking about one of those typical isolated phenomena: in some regions, up to 25% of the visitors could be renting their holiday home through these platforms. Some even talk about more than 4 million visitors per year using this model. And, in addition, from the tax point of view, these holiday home rentals seem to be similar to private doctors, an unknown territory that everyone evades. ■

4 I PREFERENTE I WORLD TRAVEL MARKET SPECIAL I 2014

The threat of illegalholiday homes

Regional governments adopt arbitrary legislation trying not to lose votes

The situation is more serious than it seems because while no one seems to regulate these holiday rentals, a very strict and precise legislation delimits every detail of what hoteliers do, who must undergo complicated mechanisms of authorisation and inspection. While hotels know how many square meters of common areas, gardens or swimming pools have to be offered for each client, while permits regulate every detail and trade unions control the workers’ conditions, we don’t find any of that in these holiday home rentals. From everything to nothing. And the client seems to be happy, because in exchange it receives more space, more comfort and less special attention.

The problem has not been evident these last two or three years because Spain has enjoyed

several good tourist seasons, but it could have dramatic consequences if we have to face a bad tourist year.

And, in addition, those affected are keeping silent about this threat. Hotel owners have been busy trying to recover from the crisis, and haven’t paid much attention to setting the situation in order. Yes, a few statements have been made, but no more. The secretary general of the Spanish Confederation of Hotels and Tourist Establishments, Ramón Estalella, has manifested his surprise at the indifference with which the sector has seen the emergence of this competition, ignoring not only the regulations of the hotel industry but also the regulations of travel agencies.

Nobody legislates and everyone keeps silentThe biggest problem of Internet is that it is out of reach. How can a civil servant inquire into a web site that offers local holiday lets if the site can be hosted anywhere in the world and it can seek protection in the tax legis-lation of any country? The authorities, all of them, are completely overwhelmed by this new reality. ■

Out of reach

By Jaime Amador

I n summer 2012, the crisis at Thomas Cook, the second largest European tour operator, was so serious that the chairman of the board

of the world’s oldest tourist business Frank Meysman was so desperate seeing the end of the company close at hand that he did a crazy thing:

he appointed as chief executive Harriet Green, a woman who had boldly cold-called him and told him she wanted to be the boss. A company of its importance would never have done such a thing in a normal situation, and instead would have asked a “head-hunters” organisation to find a proven administrator. As it was, the future of the tour operator was placed in the hands of this Medieval History graduate.

Two years after the catastrophe, which also affected Thomas Cook’s competitors, Green and her colleague Peter Long, executive manager of Tui Travel, the market leader, each presented the financial results of Europe’s two largest tour operators. To their evident satisfaction, and of the tourist sector, in both cases the impression is that they have overcome two tremendous blows: on one hand Internet and, on the other, one of the severest financial recessions in recent decades which even put the continuity of the euro at risk.

In some way, both Long and Green succeeded in transmitting the feeling that “the worst is over”. The two giants of European tourism displayed the best profile in their recent history, which is especially commendable when the economic downturn has still not been overcome in some markets.

Green deserves most credit because her company was on the brink of bankruptcy and disappearing only two years ago. Perhaps because Thomas Cook was too big to fall,

it obtained refinancing from the banks which allowed it to continue, with an excellent 2013. In turn, Long has not seen the imminence of his company folding, but has had to witness how the group that used to dominate tourism in Europe is today just another agent, important but not unreachable. Internet has taken away from Tui (and all the traditional tour operators) a substantial part of its business, but it is still surviving and its expectations are positive. ■


Tui and Thomas Cook are back on track

The two leading tourism groups reach their highest market value after ten difficult years

Harriet Green tidied up her company with a formula that can be described as: a third of the directors and managers are still in their posts because they were good, they knew what they were doing and they deserved to be listened to; another third are workers who were already in the company but had not been correctly situated by the former management and have therefore been promoted; and finally, the other third of the directors were hired in the market and came from other sectors, with an understanding of other realities. With this new formula, the company launched a project that basically consisted of positioning itself on all platforms. It has therefore needed to make a serious investment in Internet, to acquire a weight it did not have before. Today Thomas Cook once again enjoys the market valuation it possessed before the recession.

The new Thomas Cook

The new TuiThe largest German tour operator has reached its highest value on the stock market in its recent history. First of all, Tui has carried out internal restructuring. The company is now the main shareholder of Tui Travel. The German firm was originally a shipping and aviation company with the name of Hapag Lloyd. Today the planes belong to Tui and shares in the shipping company have been sold off, so that it now only holds 22% of the business. Indeed, it has recently announced that it will sell off more capital and only retain 12%. Tui Travel, the purely tourist operator is hardly recognisable either. 38% of its business is now online. In the case of the main holidays, up to 78% of the sales are online.

By Jaime Amador

O ur business is one that can change sud-denly and modify completely not only our model, but also the way we do things,

with a direct effect on our profitability and our po-sition within the market.”

This statement wasn’t said by the owner of a small regional travel agency, or by the CEO of one of our big chains, or by a new company trying to succeed. This statement was said, more or less in these terms, by the leading online company for international tourism, Expedia. And has been re-peated, with identical concept but different words, by its most important competitor, Priceline. Both, the world’s largest and most powerful suppliers of tourist services online, declare that their busi-

ness is very unstable and variable, and that they could loose their position, and their leadership, without warning. What can second-tier online agencies do? And those that are not online?

We all seem to think that it makes common sense for Internet to offer many possibilities to buy from different suppliers. If before we could only rely on those that had an office or shop in the city centre, now all we need is a computer with Inter-net access: the cost is almost non-existent and any-one with a good idea can seduce us with what we are looking for. But, if you study the 278,000 mil-lion euros of the online tourist business described by Euromonitor (a quarter of the world’s tourist industry), you will see that the cake is divided up between two large groups, both American, some-thing that had not happened before. Even the Eu-

ropean cake. And the Asian. And the Spanish. The first group, Expedia, had a 39,400 million euros turnover (4% of all the money spent in tourism worldwide). While Priceline, the second, made 39,200 million euros.

And, in addition to taking the whole cake be-tween them, in 2013 their turnover grew faster than the market, with up to 40% increases; incre- dible results for a year like 2013. But it’s not only about turnover, which is important, but also about profitability. Priceline, for example, increased its profits by 40%, from 4,000 million dollars to 5,700. Unthinkable for any of its competitors. ■

Online oligopoly fears for its futureThe two largest companies admit they depend

on Google, Facebook and Apple

What is Expedia? What is Priceline? As far as I know I’ve never bought anything from any of these companies. I can’t remember brows-ing a website under these names. But, I do book my hotels on Booking (with 425,000 hotels, 190 countries and 42 languages), the company with headquarters in Amsterdam that is part of Priceline, the American com-pany with headquarters in Connecticut. From time to time I also book them on Hotels.com (260,000 hotels, 85 countries) or I rent a car on Carrentals, both owned by Expedia. That is, both groups work with different brands to be able to participate in several sectors. We must also remind hotel owners that Expedia owns Trivago, the hotel price comparison site. Among the companies owned by Priceline we find Kayak, which they aim to change into a product quality consultancy service, similar to TripAdvisor or Trivago.

Expedia and Priceline

When you read what the Priceline (Booking, Kayak, etc.) and Expedia (Hotels.com, Trivago, etc.) executives have been warning their shareholders, you become aware of the path that the future economy will walk on: based on the Internet, on taking advantage of the client’s taste and on the mediation taken to its utmost expression. If these big corporations are aware that their whole business is in the air, that it could collapse at any moment, lets think what the rest of the sector, well behind the leaders, can do. Nevertheless, this is probably an indicator of the future of our economies: great margins, highly unstable, based on having the right idea at the right time, focusing on mediating with the client, offering a good service but without taking into account the loyalty of the end client. Important: everything is technology-centred, network-centred, where, far from the promised diversity, all figures seem to show that we are aiming towards having only a few, all American, controlling the industry. ■

Tourism equals vertigo


the president of the Spanish Confederation of Ho-tels and Tourist Accommodation (CEHAT), there are very few similarities between these two mar-kets. “The airline industry doesn’t have anything in common with the hospitality business. Abso-lutely nothing. The only thing they share is that an empty seat on a plane is a lost seat; in the same way an empty room is a lost room. That’s the only thing they share, when they don’t sell.”

A BIT OF EVERYTHING. When we review these relationships, many of them unsuccessful, be-tween airlines and hotel chains we find that there has been a bit of everything. Let’s start remem-bering, for example, when Air France created in 1972 the Le Meridien chain and opened its first hotel –the Parisian Étoile with 1,000 rooms– to “provide a home away from home for its clients”. Six years later it already had 21 hotels spread across the globe, opening it’s 58th in 1991. A few years later, in 1994, the French company changed its strategy and decided to sell it to the British group Forte. After that, the hotel changed hands a few times (Compass Group, Nomura Interna-tional and Lehman Brothers Holdings) until it be-came part of Starwood in 2005.

We have to travel to the Land of the Rising Sun to get to know two more cases. The first is Japan Airlines, the first owner of the Nikko Hotels chain, which in the 90s was renamed JAL Hotels. A dec-ade later, in 2010, it was purchased by Okura. The second example is All Nippon Airways (ANA), who undertook on the 1st of December 2006 a joint venture or strategic alliance with Intercontinental, under the name IHG ANA Hotels Group Japan.

Mineo Yamamoto, ANA’s CEO, declared after signing the agreement that it had been a big day because from then onwards the clients of the ho-tel chain were going to be able to benefit from the new opportunities offered by both companies. “We, both ANA and IHG, are hoping to build a successful venture in the long term and explore opportunities for other strategic alliances.” ■


By Fabián Cabello

A ir France, All Nipon Airways, Japan Air-lines, Air Jamaica, Air Europa and Avian-ca have a lot in common, other than their

planes. All these airlines have tried –with more or less success– to dabble in the hotel industry. Ei-ther establishing their own chain, embarking on a joint venture with an established brand or managing facilities on a rental basis, the truth is that all of them have tried to be in two places at the same time so they could offer their passengers not only a seat to fly on, also a bed at their destination. Both services under the same brand.

“It’s interesting to see that airlines have the ho-tel industry in their sight. It’s positive, but at the same time it creates some uncertainty regarding its vertical nature. We must take into account the fact that, when these alliances are made, there are less marketing possibilities, in general terms, as competition is reduced”, explains Juan Molas. For


Airlines, keep to your planesAir France and Japan Airlines, among others, have abandoned

their plans after trying to set up a hotel chain

In AmericaNow that we’ve crossed the Pacific, we land in Colombia to get to know another airline that made an incursion in the hotel industry. This time we are talking about the business-man Germán Efromovich, owner of Avianca, who has given the last syllables of his sur-name to the seven hotels of his Colombian chain. Movich Hotels & Resorts currently has establishments in Cartagena, Medellín, Cali, Bogotá and Pereira. It was in October 2009 when he bought La Heroica, a boutique hotel of only 32 rooms in the old quarter of Carta-gena. But, before we leave South America, we also have to mention the alliance between Air Jamaica and Sandals Resorts.

Back in the old continent we also find oth-er important cases, such as Air Europa’s initia-tive with Be Live.

Steps to be takenWhat do they have to take into account or what requirements should an airline satisfy before entering the hotel industry? “Whether it’s an airline or any other company from a non-tourism industry, the first thing it must do is study it’s own business, draft a detailed plan of its situation and its market, and let real professionals take care of it.”

J. G. / C. B.

I t is generally agreed that Madrid is lacking a brand name to distinguish it at an international level. Yet Spain’s largest city possesses qualities

that no other metropolis enjoys and they are all benchmarks in the enjoyment of leisure time.

First, Madrid is the home of the world’s most successful football team, the recent winner of its tenth European Champions Cup, and the best-known team in the world. Second, its series of art galleries –Prado, Reina Sofía and Thyssen– can be matched by few places on the planet. Third, no other city can boast of night-life like the Spanish capital; the ambience of its street cafés or the warmth of its inhabitants. And fourth, the options for shopping are equal to those in the world’s largest cities (in Ortega y Gasset and the project based around Puerta del Sol). For these reason, Preferente magazine aims to involve itself in the search for an identifying brand. “World Leisure Capital” (Capital mundial del ocio) or “World Fun Capital” (Capital mundial de la diversión) could be the slogans that best promote the string of international-standard attractions that

all together distinguish Madrid from other tourist destinations. It would be even more effective if it were combined by an integrated development, including urban planning.

Antonio Gil, chairman of Madrid Hoteliers Association, explained that “it’s a matter of us all working together”. “We have the strands to make the cloth, we just need to weave them together. It’s a job that we all have to do, administrations and businesses. We would have to create the channels through an international public relations organisation, like other major tourist cities, such as Barcelona, New York, Paris... We also have to decide beforehand what we aim to sell in each market and sit down to work on a communication plan”, added Gil.

Experts agree that there is plenty of room for improvement in the tourist exploitation of the

city as regards Real Madrid, with hotels and thematic attractions, for example in the surroundings of Santiago Bernabéu Stadium, whose museum is already the most visited museum in the city.

Enormous potential is also seen in the Paseo del Prado, which could be improved to make it more attractive to tourists, in contrast with the impression given by the

asphalt and traffic that at the present separate the three main museums in the city.

The most lucid and original proposal made to date came some months ago from the CBRE real estate experts, who claimed that the present Convention Centre, opposite the Bernabéu Stadium, should be turned into a hotel and it would make more sense to use the building and position of the Ministry of Health for tourist accommodation. ■


Madrid, World Leisure CentreThe challenge for the Spanish capital is to create its own brand


The challenge for Madrid is to create a brand in the absence of the architectural icons of other cities. However, the example of Barcelona shows that, although they are important, they are not essential, and to develop a city touristically it is only necessary to develop an integrated plan which inevitably embraces town planning and the management of real estate.

Gildo Seisdedos, lecturer at IE Business School and author of the book Managing 21st Century Cities (Financial Times Prentice Hall), states that “Madrid lacks an overall brand, an icon, a point of reference”. For this expert in city-marketing, “public institutions should lead the process, and they are, but in a fragmented and inefficient way”.

The importance of an integrated plan

The final comment

Happy and brightMadrid has the potential to be marketed as a happy and bright destination, where leisure time can be enjoyed better than in any other place by all kinds of visitors: young people, single people and families, both elite and less exquisite individuals, from Europe, America or Asia.

to join the big chains in their purchase battles, as they have been prepared for some time now, wait-ing for the right time to accelerate their expansion. Conversations with independent hoteliers have been difficult, due to the well-known business mindset of the Majorcan, but the situation chang-

es when a bank is pressuring or even imposing.Independent hotels have, in many cases, very

obsolete business ideas, limited to traditional ne-gotiations with tour operators while they contin-ue unchanged, as it has worked so far. But if we take into account how the tourist product is be-

ing marketed nowadays and how the clients’ taste has drastically changed in this last decade, the economic Darwinism will be relentless if we don’t give a professional status to the sector.

The main threat of the forecasted concentration in hands of bigger and stronger companies is the recent voracity to own buildings exclusively. Foreign funds and emerging investors have normally shown a preference for the highest-level segment and they are not expected to take a relevant position towards hotels that focus on everyday tourism. ■

By M. Llibre

M allorca’s hotel industry will undergo important changes in the near future, and the entire Spanish holiday industry

will follow, as the Balearic island has been histori-cally a pioneer in the sector.

This forecast is based on the fact that most of the establishments we find in Mallorca are obso-lete, and most of them are also owned by small en-trepreneurs, in many cases burdened with debts. This means that these hotels are only profitable when they are at full capacity, as it has been hap-pening so far.

The clear threat will come when the European tourists restore their trust in the Maghreb, some-thing that is inevitable and will happen soon. The destinations that compete with Spain sell their rooms a lot cheaper, and their infrastructure is less

deteriorated. But here, during these years of pros-perity, all the renovations have been limited to specific areas, such as Magaluf. For the rest, tour operators have financed all work.

INDEPENDENT HOTELIERS. It is estimated that 70% of the hotels in Mallorca are owned by small independent companies, who in these seasons of full occupancy have rejected generous offers for their establishments, to the surprise of the buyers, knowing that they will not be offered those prices once the unstable situation of the Arab countries ends. A possible drop in the number of reserva-tions would leave most of these hotels on the brink of bankruptcy.

With this outlook, chances are that big and me-dium chains will increase their share of hotels they already own in the island. That explains why Iber-ostar, for example, is working on launching a low

cost brand for the three and four-star sector, Olé Hotels, while Meliá has just given a facelift to Sol, its brand for that same market niche.

WAIT FOR THE RIGHT TIME. All seems to point out that medium chains with small debt are going


The twilight of Mallorca’s

small hoteliers Predictions of a higher concentration

after the recovery of the Maghreb


Watch the expensesThe challenge now for big chains will be to watch their expenses for quality standards that are below what they are used to, because if they don’t control their expenses they will find it very difficult to make their assets profitable. On the other hand, the experi-ence in Mallorca of this concentration phenomenon can be useful towards exporting the model to other Spanish destinations that are suffering a similar case, with obsolete establishments, strangled owners and lack of professional management.

The biggest problem has been that every year they have used up their resources without saving any for renovations so, as soon as it becomes evident how much their product has degraded, it will be difficult for them to obtain any funds.

C alvià within its 54 km of coastline is provided with 34 beaches ready to be enjoyed at anytime of the year and, in this

sense, the municipal responsibles are working hard to keep them in perfect conditions. Nevertheless, this municipality is much more than just sun and beach as it also presents, a wide sports offer spread throughout its geography. Golf courses, marinas where to practice any type of nautical activity, a natural turf football pitch in which European

teams train during the Winter months thanks to its magnificent temperatures -with an average range of between 15 and 18 degrees between November and March- six municipal indoor swimming-pools, an athletics track where important national and international races take place, cycling routes or a rugby pitch are some of the clearest examples of the possibilities that Calvià offers to the tourist, possibilities that go even further as this Majorcan village counts with a rich natural and cultural

heritage especially relevant in archaeological elements, estates and defence towers, without forgetting the impressive ecological values of the municipality and especially those related to the peninsula of Cala Figuera, Na Burguesa and the Serra de Tramuntana, recently declared World Heritage by the UNESCO. In fact, over an 80% of its land, its catalogued as rural which favours an important protection of the territory. It is to be highlighted, in this sense, the recent purchase by the consistory of the Galatzó Public Estate, an old Majorcan property of 1401 hectares located at the feet of the highest peak of this location, the Puig de Galatzó (1026m). It is one of the greatest estates of the Balearic Islands and corresponds to the 10% of the total area of the municipality. ■

By I. M.

A ll that glitters is not gold, golfing tourists are not as wealthy as was thought, and not all the tourist segments are booming

in Spain. The financial crisis, competition from countries like Turkey and Morocco, the excessive offer and the increase in VAT on golf-courses from 8 to 21% have shattered a business that promised to be the panacea for tourist destinations in the 1990s. The peculiarities of each destination and even of each golf-course have influenced the loss of customers. However, the fact is that no course

has been free of a drop in profits to a greater or lesser extent.

The problem is so serious that the chairman of the Association of Spanish Golf-Course Managers, Salvador Álvarez Escobar, has stated, “I don’t know of any course in Spain that is making a profit at the present time, neither commercial ones nor mixed ones (with members)”. As an example, he said that the golf club he manages has lost over half its members in recent years and numerous courses in Spain have closed or are about to. In Andalusia alone, during May three closed and so far this year six have thrown in the towel. “In the

Canary Islands too, I know of several that are suffering and might close”, Álvarez claimed.

In the Balearic Islands, no courses have closed, but for a couple of years golf-courses have been struggling. The Chairman of the Association of Balearic Golf-Courses, Federico Knuchel, has pointed out that the increase in prices, partly because of the rise in VAT, and the competition is making it very hard for businesses to keep going. Traditional tour operators and on-line agencies also have their share in the blame, as their profit margins often come to 20%. It is in Andalusia, where the cost of green fees are considerably lower, that the crisis has most been noticed, as they have been sold to the final customer for under 30 euros. The reduction in profits has been so large that “we can’t keep going”, says Salvador Álvarez. Knuchel, who has played golf for decades, speaks sadly of the situation and both he and Álvarez could not help accusing politics and the real estate sector as responsible for the collapse in the golfing segment. On one hand, the former claimed that in the Balearic Islands, golf has often been used as a political tool. On the other hand, for both of them, golf-courses have been built as an attraction for tourist residential developments and this has harmed golf tourism because golfers do not enjoy playing the sport when they are surrounded by bricks and mortar. ■


Turkey wins the golf tourism over Spanish suffocated courses

Recession and VAT have impacted on a segment that promised the earth


For these two golf lovers, politics is also responsible for more golf-courses being built than is necessary. For property developers to be given permission to build, Town Halls asked them for a golf-course because “it was thought to add glamour to the town” and “in many cases they didn’t stop to think about such important needs for a course as the way of watering it”, the Chairman of the managers remarked.

The future involves “riding out the storm”, says Salvador Álvarez, because destinations like Turkey are becoming very competitive. ■

The role of politics

A myth“It’s a myth that golf-players are rich, because the sport has gained in popularity, and even the ones with money are more careful how they spend it today.” (Federico Knuchel)

Calviá, much more than sun and beach

The muncipality offers a wide range of possibilities to sportspeople and nature lovers such as cycling routes, an athletics track, a natural turf football pitch, amongst others

By Á. Alcocer

I beria is getting ready to regain old routes and grow, while Vueling is still on the rise; it has kept its independence and has not become

a British Airways feeder. The situation of both Spanish companies shows that their parent com-pany IAG was telling the truth in spite of the –deep– mistrust of the Spanish government.

The Minister for Tourism Soria has, once more, embarrassed Spain in front of the whole wide world with his wrong prophecies and his lack of accuracy when he made up a route to Havana that British Airways wasn’t even offering. His comments against AIG were very unfortunate, at a very compromising time for the country’s brand and its legal security as encouragement for investments.

His standpoint served to fuel the most illogi-cal theories regarding the aim of the merger be-tween Iberia and Vueling and Willie Walsh’s hold-ing, theories that were soon refuted. IAG replied

with objective figures and with the required con-ditions to turn around Iberia’s situation and boost Vueling’s development.

The agreements signed with Iberia’s worker unions have served to prove that, at least for now, there is faith in the Spanish company, something that seemed impossible a few months ago. The

company’s makeover, the new business policies, the improvement of the product and the reduction of its top management have also had something to do with it. The result of those measures is that, in only a few months, Iberia has been capable of working as a European airline of the highest level.

Vueling, on the other hand, has also proven that in the last few months, the first ones as part of IAG, there has been no interference from London. The most recent and important measure it has taken is to continue on the same path that helped it reach the privileged position it enjoys now. And, as the opening of a hub in Rome shows, it will keep its freedom of movement. ■

P alma City Council has achieved the goal it set itself three years ago, when the government team led by Mayor Mateo Isern

strove for an extension of the tourist season and the positioning of the Mallorcan capital as a first-rate urban destination by means of the Fundación Turismo Palma de Mallorca 365.

The foundation has followed an open yet deter-mined strategy in its tourism promotion policies, a fact proven by the organisation’s most recent pro-ject, the commission of two communications and public relations agencies in the United Kingdom and Germany through public tender.

The winning agencies –Lotus UK for the Bri- tish market and KPRN Network for German-based tourism– will have to develop and im-plement external communication plans and initiatives over a period of one year in order to publicise the image, the activities and the most note-worthy events in Palma with respect to these mar-kets. The communication plans developed must be founded on two main objectives: the enhance-ment of the projection and image abroad of Palma as an urban destination with a differential factor, one which is based on the offer of a diversified and competitive range of quality activities, while pro-moting Palma on the basis of the city’s eight strate-gic products, i.e. culture, sport, nautical activities, golf, shopping, health, cruises and business.

This initiative enhances the foundation’s inter-national tourism promotion strategy in Palma’s main source markets. Although this programme is still at an initial phase, plans have already been made to expand the project’s horizons to the Scandinavian market. ■


Palma de Mallorca pushes ahead with its international image

The Balearic capital establishes itself as a 365 destination

From left to right: the General Manager for Tourism of Palma, Javier Bonet, the Manager of the Fundación Turismo Palma de Mallorca, Pedro Homar, the Deputy Mayor for Tourism and Council Coordination, Álvaro GIjón, and the directors of the public relations agency Lotus UK.


The Fundación Turismo Palma de Mallorca 365 has focused all of its efforts on providing the city with a highly qualitative, imaginative and distinctive offer. Hence, all the initiatives carried out by the organisation have a common aim: transforming Palma de Mallorca into a 365 destination.

Last October, the foundation brought out the city’s official tourism card, the Palma Pass. The card is based on the use of contactless technology, which allows access to all the city’s tourism-based offers, in addition to Palma’s most important cultural resources. It also provides discounts of up to 50% in museums and visits, not to mention the area’s finest shops and restaurants.

The card is an essential resource for the city of Palma, as it provides advantages for both the consumer and the destination. This initiative indisputably contributes to extending the average stay of visitors to the city, its enhancement and the promotion of our wide range of tourist-based resources available.

This first edition of the card is available in two versions, with validity periods for either 48 or 72 hours. ■

Palma Pass, the Tourism Card for 365 Visitors

The foundation has followed an open yet determined strategy in its tourism promotion policies

IAG is getting seriousPlans for Iberia and Vueling place trust in the Spanish brands

IAG replied with objective figures and with the required

conditions to turn around Iberia's situation and boost

Vueling's development


PROJECTS. Less mature are the plans of the other two Balearic chains mentioned above. Iberostar has announced that Dubai will be the place in the United Arab Emirates in which it will open a business, while it is also studying the entry in other emirates with beach destinations, like Ras el Jaima, Sarja and Fujaira, as well as Abu Dhabi.

At the same time, Palladium has entered negotiations to open new hotels of the Ushuaïa brand, the youngest and most cutting-edge in the portfolio of the Matutes family, both in the USA and in the UAE.

Linda Scaperotto, marketing director of this hotel group from Ibiza has said that the Ushuaïa product ‘suits’ the city of Dubai (UAE) and Miami and Los Angeles (USA).

THE HUB. The large growth of tourists in this destination can be explained mainly by the strength of its airport, due to Emirates’ bid to become the link between Europe and Asia. Tim Clark, Emirates’ chairman, thinks that his airline will be the world’s largest in number of passengers in 2020, when the company will own over 250 planes and will carry over 70 million passengers on six continents. “We’ll be the airline with the largest number of international passengers”, explained Clark.

Dubai opened the new Al Maktoum International Airport in mid-June 2012, while a mega-airport with five runways, three terminals, hotels, shopping malls and over 100,000 parking spaces is under construction. It will be connected to the present Dubai airport by a high-speed link and will be able to handle over 160 million passengers a year, far more than the current capacity of Atlanta airport. ■


M. Llibre

Dubai has become a priority for several big Spanish hotel chains. Expansion in the Emirates is seen as a safe bet, as the

destination is achieving a balance between holiday and business travellers. For that reason, the Spanish chains with mixed urban and beach portfolios will be the first to disembark in this most iconic part of the Gulf. Meliá, Iberostar, BlueBay and Palladium will be the first to arrive, with more or less clearly defined projects in each case. Their plans all have in common that they are hotels in their more minimalist lines,

aimed at urbanites with middle or high incomes. Meliá Hotels International, which already had a five star hotel in the destination, announced that it had found the ideal location in Dubai for its next hotel, under the exclusive ME brand. The future ME by Meliá Dubai is planned to open in 2016 and will be in the Opus Building, developed by the Omniyat real estate company and designed by the architect Zaha Hadid.

ME Dubai will provide 100 rooms and will be located in the 80,000 square metres of the Opus Building together with Michelin-star restaurants and luxury shops. “We were looking for the best city

for the next ME hotel by Meliá and we found what we were searching for in this spectacular project”, explained Gabriel Escarrer junior at the time.

Equally, the BlueBay Group also opened the first block of its Armada BlueBay complex, in a joint venture with the Armada Group, under the BlueBay brand. This year it has opened a second building, with the Bellevue flagship brand, aimed at families. And in 2015 the company’s urban brand BlueCity will touch down in the city of Dubai, with an establishment that will combine rooms with apartments aimed at the ‘ex-pats’ on medium or long-term stays there.

Big chains agree on prioritising DubaiMeliá, Iberostar, BlueBay and Palladium, all seduced by

the holiday and business offer of the destination

Destinia has opened an office in Dubai in order to increase its sales in the Middle East and position itself in the Arab Emirates and Saudi Arabian market, in contrast with “the general trend of Spanish companies in recent years, which has been to open new markets in Latin America”.

In 2013, visits to its website increased over 166%, and to publicise the online agency in Dubai, it launched a massive marketing campaign to make the Destinia site known to the population. In this way, the main avenues and shopping centres in the city were flooded with advertisements for the Spanish travel agency. Sheik Zayed Road, Media City Bridge, Al Khail Road, Mirdif City Center and Zaabel Road Dubai were the places chosen.

Destinia, the pioneering Spanish OTA

C osta Adeje is in the south of Tenerife, one of the seven “Fortunate Islands” of the Canarian archipelago. The name, with

mythological and historical references, today can just as easily refer to the good fortune residents and visitors to the island have, given the consistently good weather and average temperature of 24ºC throughout the year. But the ‘fortune’, in the case of Costa Adeje, is also a reference to the work that has gone into ensuring that this is a top quality destination, and that quality is integrated into all aspects of the tourist offer, from attention to the individual, the hotels, the leisure offers, communal spaces, etc. Costa Adeje radiates luxury wherever you look.

Costa Adeje is a leading European destination because of the climate, its proximity to the Spanish peninsula – just 2.5 hours flying time – and because of the diversity of experiences on offer to the visitor, from shopping in top brand stores to exclusive trips on private yachts, on horseback on by helicopter, a wealth of different and exclusive activities. Costa Adeje is located within an area of natural beauty with 45% of the surrounding terrain listed as protected territory, and a coast that teems with marine life including resident colonies of dolphins and whales who live in the warm Canarian waters all year round.

The Costa Adeje coastline also boasts the luxury of various blue flag beaches as well as other areas

where people can swim, sun bathe and relax or enjoy a variety of water-based sports. Water is an integral part of Costa Adeje, and not just the salt variety. There are a selection of excellent spas which are of top quality and add to the tourism and health offer which is a chosen option thousands for visitors who are in search of the perfect spot for this kind of vacation. Water is also a major player in the many leisure parks and attractions in Costa Adeje, water parks that are recognised as some of the best in the world, such as Siam Park and Aqualand, offering visitors a terrific diversity. Siam Park has recently been recognised as the best water park of its kind in Europe and has received many awards and prizes at national and international level.

Costa Adeje golf is another excellent string to this fine bow. This is a 27 hole course which will satisfy the most demanding of golfers and is part of the PGA circuit. However top class and professional golfers are not the only sports fans who will be delighted at the offer in Costa Adeje – the zone is also home to some high risk sports such as parapenting. But if there is one place that has stood head and shoulders above other sporting installations in recent years it is Tenerife Top Training, T3, where elite sports professionals and international teams (football, rugby, swimming, etc) as well as sporting enthusiasts come to train, to improve techniques and perfect their skills. This is recognised as one of the most modern installations of its kind.

If adventure or health are some of this destination’s strong selling points, shopping and night time leisure are also on the list. Here tourists can avail of tax-free shopping, an offer that should be of particular interest to those looking to buy top brand items with excellent discounts, in fashion, jewellery or electronic goods.

When night falls visitors can get to know first-hand the open air top class terrace restaurants, bars and clubs that light up Costa Adeje after dark. Gastronomy is top class, creative, tantalising, and integrates Canarian products into the best offers, with wine cellars to match. With the perfect after hours’ temperatures, once dinner is over there are so many options you are spoilt for choice, and with the more than agreeable climate the party can go on all year round. There are different ambiances for different moods, clubs to suit all groups and ages.

Truly the visitor to Costa Adeje has fortune on their side: luxurious natural surroundings, climate, hotels, shops, spas and clubs, but above all luxurious top class service. Fortune awaits you in Costa Adeje. ■


Costa Adeje, a luxury destination

In the heart of Santo Domingo, far from the bustle of the metropolis, we find the new Occidental El Embajador. Perfectly located close to the financial, cultural and historical districts of the oldest city of the New World. Rest and relax with a breathtaking view of the sea or garden from your room, enjoy a gourmet lunch, explore the villages nearby or go to a local baseball match. At the Occidental El Embajador Hotel,

tradition and innovation come hand in hand.

R. P.

T he arrival of tourists from the European continent to the Dominican Republic has taken up again, growing steadily as in

previous years and increasing by 6.9% from January to July 2014.

As stated in the report published by the Central Bank on tourist flows, in the first seven months of 2014, the different destinations of the Dominican Republic were visited by a total of 676,335 European tourists, which represents a growth in 43,905 travellers.

During the 2013-2104 reference period, the number of tourists increased by 9.3%, from 396,938 to 433,977, i.e. 37,039 additional visitors.

THE COUNTRIES. Regarding their country of origin, Germany is at the top of the list, with 13,282 tourists, followed by Great Britain (9,767), Russia (8,016), Belgium (4,364), Ukraine (3,214), Austria (2,274), Sweden (2,175), Spain (2,134), Poland (1,714) and Italy (1,330).

The information included in the report published by the Central Bank traces these figures back to the “successful marketing campaigns

carried out in Europe, together with the recovery and the economic growth of the Eurozone, which is expected to grow at a 1.1% rate in 2014”.

The Central Bank also specifies that the growth rate of the Dominican tourist industry is a result of the correct strategies carried out by the Ministry of Tourism with the collaboration of the private hospitality sector, which “have achieved the consolidation of the country’s leadership position in the Caribbean region”. The report also details that the recent performance of the sector shows an “excellent forecast in terms of tourism revenue for what is left of the year”. ■

Record numbers of European tourists visiting the Dominican Republic

By J. N.

A few weeks ago, a group of British agencies specialised in conferences, groups and incentives visited the Dominican Republic invited by the Tourism Promotion Office (OPT), in collaboration with British Airways.

As part of the itinerary, they visited important hotels in the areas of Punta Cana, La Romana and Santo Domingo, and their facilities to host conferences, such as Hard Rock Hotel Punta Cana, Paradisus Palma Real, Barceló Palace Deluxe, Iberostar Grand, Secrets Royal Beach, Zoetry Agua, Sivory, Dreams La Romana, Casa de Campo, Hostal Nicolás de Ovando and Hilton Santo Domingo. The visit also included

excursions to Saona Island, the Colonial City of Santo Domingo and the Happy Hour Sunset Cruise.

FROM TWO TO THREE. In November British Airways will increase to three its flights from London Gatwick to Punta Cana, due to the popularity of this route. This destination has attracted a large number of independent British tour operators and, to satisfy this important market, the Dominican Republic has expanded its tourist offerings.

The Tourist Promotion Office in London has scheduled several promotional trips for this year, all aimed at British tour operators, travel agents and media. Representatives of these important agents will visit the main areas of interest of the Dominican destination to encourage the promotion of the country in Great Britain. ■

British agencies study the country’s potential

2014 I WORLD TRAVEL MARKET SPECIAL I PREFERENTE I 2726 I PREFERENTE I WORLD TRAVEL MARKET SPECIAL I 2014

By R. P.

T he Dominican Republic, together with Mexico and Peru, was in 2013 the most popular tourist destination of South

America. This region shows a 2.6% growth rate, with a total of 83.9 million visitors. On the other hand, the country’s tourist revenue peaked to 71,954 million dollars, 3.8% more than the previous

year (2012). All this information was presented in the 2014 edition of Tourism Highlights, published by the World Tourism Organization (UNWTO).

According to this statistics-based report, regarding tourist reception and income per tourist gross figures, Mexico is the most important destination in the region. Peru, registered in 2013 the most substantial growth rate and the Dominican Republic came third in revenue and fourth as regional destination, after Mexico, Brazil and Argentina.

2013 showed positive figures for the Caribbean in general, taking into account that it registered revenues for 24,828 million dollars after the 24,201 millions of 2012. Mexico has increased its revenues from 12,739 to 13,949 million dollars, while Central America went from 8,723 to 9,380. South America also registered an increase in revenue volume, from 23,626 to 23,927 million dollars.

ARRIVALS. The Caribbean registered a 2% increase in the number of visitors. The most popular in absolute terms was the Dominican Republic, with 4.6 million tourists, ahead of Puerto Rico, with 3.2 million tourists, and Jamaica, 2 million visitors. Puerto Rico (4%) and the Dominican Republic itself (3%) grew more that the sub regional average. Other less important destinations such as Aruba (8%), Caiman Islands and Anguilla (7%), and Curaçao (5%) show a significant growth, together with Haiti, a country that after the 2012 decline in visitors has reported a 20% increase.

This shows the importance and the influence that the tourism industry has in the Gross Domestic Product, as the revenues from tourism peaked to 8.4%, ahead of Panama (8.2%) and Costa Rica (5.2%). ■

The Dominican Republic, captivatingAccording to the WTO’s report, it is one of the South

American countries with the fastest growth rate

During the two years that president Danilo Medina has been in power, the tourism in-dustry has generated for the Dominican Re-public more than 10,000 million dollars; this is a 17.5% increase for the 2012-2014 period, compared to 2010-2012. This figure is a reflec-tion of one of the most solid and sustained economic growth rates during the current term of office.

These figures were given by the Minister for Tourism, Francisco Javier García, who eval-uated how much this sector has achieved un-der the current government. In this sense, he emphasized that the tourism industry is the priority of this mandate.

García has declared that 9.5 million tour-ists have visited the country in the last two years. This represents an increase of 9.25%: 800,000 additional tourists as a result of the international promotion carried out by the country.

“The growth of the tourism industry has been extraordinary in the two years of man-date of president Medina, exceeding signifi-cantly the forecast made for the region by the World Tourism Organization”, he stated.

In this sense, as García pointed out, thanks to the increase in tourism and a wide selec-tion of accommodation available, this sector has created at least 216,543 jobs, direct and indirect: 5% of the country’s employed pop-ulation.

“If we take into consideration the induced jobs, according to the Tourism Satellite Ac-count model, the percentage raises to 17.8%, or 680,000 jobs”, he clarified. ■

Tourism generates 10,000 million dollars

during Medina’s first two years

Great opportunities for golf loversIn the last two years the recreational offerings have diversified, and the country has become the most important golf destination in South America and the Caribbean, which has contributed to the development of marinas and theme parks.

The Central Bank announces a substantial increase in the number of visitors from the old continent

Por R. P.

B ecome a part of our magnificent paradise community with the purchase of a vacation home with the elite of The

Estates at PUNTACANA Resort & Club. Grupo PUNTACANA has worked meticulously to

develop communities in harmony with their lush surroundings, preserving the rare natural treasures of the Dominican Republic.

Come join the ranks of Oscar de la Renta and Julio Iglesias, stepping into an exclusive lifestyle of

relaxation, excitement, and understated elegance. With homes along our scrupulously manicured golf course and the sparkling Caribbean Sea, there’s an abundance of locations and exquisite views to choose from.

Featuring one, two, and three bedroom residences with expansive terraces located in

beautifully designed buildings, Hacienda del Mar features Punta Cana condos which overlook P.B. Dye’s spectacular La Cana Golf Course. All buildings consist of 2, 3 and 4 levels with elevators, their own private pool and leisure areas.

Buildings are comfortably spaced distribution with; lobby, living room, dining room, equipment full kitchen, linings closet, master bed with walk-in closet, each bedroom has their bathroom, service bedroom, guest bathrooms, terraces with beautiful views and Jacuzzi.

Hacienda del Mar is conveniently located within five minutes of The Punta Cana International Airport, as well as The Puntacana Village with its shopping and entertainment.

Hacienda del Mar owners will also have access to PUNTACANA Resort & Club facilities, including La Cana Golf Course and La Cana Golf & Beach Club, Tennis Center, Playa Blanca Beach Club, Six Senses Spa, Kite Club, Aquatic Center, world class restaurants, 1500 acre

ecological park, horseback riding center, and miles of private beaches. PUNTACANA Resort & Club was selected by the IAGTO as best resort golf courses in the world. ■

28 I PREFERENTE I WORLD TRAVEL MARKET SPECIAL I 2014 2014 I WORLD TRAVEL MARKET SPECIAL I PREFERENTE I 29

The Estates at PUNTACANAResponsible Luxury in a Sustainable Paradise

PUNTACANA Resort & Club is the Caribbean’s leading resort community at the eastern shore of the Dominican Republic. Tortuga Bay is member of Leading Hotels of the World and the only AAA Five Diamond awarded hotel in the Dominican Republic, offering understated elegance, privacy and unparalleled personal service. Located at Playa Blanca beach, The Westin Puntacana Resort & Club guests will enjoy all of Westin’s signature amenities and Don Queco Cigar Bar. Our Four Points by Sheraton Puntacana Village situated in Galerías Puntacana and a few minutes from Punta Cana International Airport.

DINING. PUNTACANA Resort & Club is home to 7 restaurants that offers a diverse array of cui-sine. Tucked inside Tortuga Bay, the AAA Four Diamond awarded Bamboo, blends Mediterranean and Modern cuisine. The AAA Three Diamond Award La Yola is located at the Marina. Located at La Cana Golf & Beach Club is The Grill, an American style grill offering views of the sea. The Wes-tin Puntacana Resort & Club provides a variety of restaurants from Ananí to the Brassa Grill. Next door is Playa Blanca, a beachfront tropical restaurant. The Grill at Corales Golf Club is also open for lunch.

TO DO. With 45 championship holes PUNTACANA Resort & Club is the Caribbean’s premier golf featuring La Cana Golf Course and Corales Golf Course. PUNTACANA Resort & Club offers a wide range of activities for guests of all ages including golf, kiteboarding, scuba diving, snorkeling, tennis, horseback riding, fishing, and numerous excursions and tours by sea, land and air. The lead-ing spa in the Caribbean, Six Senses Spa at PUNTACANA Resort & Club presents a range of inno-vative and comprehensive packages, Six Senses Signature treatments and Asian therapies. Visit the Puntacana Galerías to enjoy an assortment of exceptional; shops, restaurants, playground, art gal-lery and our spirited nightlife.

PUNTA CANA INTERNATIONAL AIRPORT. Punta Cana International Airport, owned and operated by Grupo PUNTACANA, the resort’s developers, is located just minutes away from the PUNTA-CANA Resort & Club. Punta Cana International Airport has direct service from 96 different cities around the world, making Punta Cana the most accessible destination in the Caribbean.

PUNTACANA Resort & Club, beyond a destination

The beauty of nature is at once inspiring and relaxing, it is the

perfect inspiration. – Julio Iglesias (Partner and Singer Songwriter)

Every morning I go out on the balcony, look over the shimmering sea and say, God, thank you. – Oscar De La

Renta (Partner and Fashion Designer)

I f the Dominican Republic enjoys the advantage of being regarded as one of the most popular destinations in the Caribbean, it is

without a doubt due to the excellent service quality provided by their hotels to the international tourist, which reinforces the diversified and modern hotel establishments within the country.

The courtesy and warmth of treatment received during a person’s stay are paramount for improving customer experience. This should not be forgotten upon check-out. That is why it is so important for the hotel industry to incorporate the latest technological developments, which will allow customers to pay and leave the hotel facilities with a huge smile.

In that sense, the Dominican Republic is expe-riencing a period of great innovation regarding payment methods. Recently, the AZUL brand was launched on the market, a new affiliation option in order for merchants to receive payments with credit and debit cards, as well as other digital pay-ment methods.

AZUL is part of Servicios Digitales Popular, a subsidiary of Grupo Popular, which is already a market leader in financing the Dominican tourism industry. Its purpose is to provide tailor-made world class technological solutions for each in-dustry.

It relies on a pioneering feature in the Dominican Republic’s hotel market: a specialized payment platform for the sector.

Grupo Popular’s new brand allows hotels to offer customers clear information regarding invoicing of their consumptions as well as safe and flexible payment methods.

HOTEL SOLUTIONS. In addition to a global stand-ard of safety and acceptance of mayor international credit card brands, the AZUL solution for hotels in-tegrates a “Check in - check out” application, which provides control over purchases made throughout the customer’s stay, regardless of where such pur-chases where completed throughout the hotel by assigning a room number and hence grouping all invoices under the same document.

Such unified invoice allows you to make changes until the customer’s departure. Therefore, the hotel can perform different daily closings without affecting the customer’s final unified invoice.

“We know that hotels, rental companies or restaurants need a flexible platform to handle their customers’ invoices, this is why we offer custom-made solutions. We are focused on creating value for both the merchant and consumer, based on three pillars: innovation in the payments market, world-class customer service and security for businesses and card members”, Eugene Rault Grullon, general manager of Servicios Digitales Popular, explained.

CAR RENTALS AND RESTAURANTS. AZUL al-so provides specialized solutions for other indus-tries that stimulate the development of Domini-can tourism, such as applications for car rental businesses, which have the option to assign a uni-fied invoice for each vehicle leased. It opens up-

on vehicle pick-up, combining all purchases made throughout the rental period in the same invoice, which is closed upon its return.

Restaurants also rely on a specific AZUL appli-cation which enables them to assign a table num-ber for each transaction, thus better controlling all expenditures and allowing the diner to add their tip directly from their card, separately from the bill and without the need to handle cash.

AZUL promises to continue this path of inno-vation, which will certainly benefit the Dominican hotel industry image abroad.

Without a doubt, these contributions to the country’s payment method evolution become an unbeatable ally in the Dominican Republic’s tourism industry service and entertainment advancement.

For more information: www.azul.com.do ■


AZUL, the evolution of the Dominican tourism credit card payment methods

Grupo Popular’s new brand brings solutions which are tailor-made for the tourist industry

By L. M. F. / Havana

T he Gaviota Group is planning to build 30 new hotels in Ha-vana, Varadero, Ciego de Avi-

la, Holguín and Camagüey, with a total of 15,000 rooms by 2018.

The chain will open the first two establishments for the next winter season in Villa Clara and Jardines del Rey Keys. The group currently owns some 55 hotels with 24,000 rooms, which represents over a third of Cu-ba’s total capacity.

The company’s marketing vice-chairman, Frank Oltuski, has point-ed out that a million Canadians visit the island every year and “about half a million enjoy our services”.

INTERNATIONAL CHAINS. Almost 87% of Gaviota’s hotel products are run by international hotel chains, in-cluding Meliá International, Iberos-tar, Occidental, Blau, Riu, Valentin, H10, Hotusa, Pestana and Blue Dia-mond. The group also manages its own hotel business with 3,484 rooms on the island. For 2015, the compa-ny plans to open another hotel in Va-radero, with 470 rooms, which will be managed by Ocean hotel chain, while by 2016 another project will be ready, with 827 rooms. “It means that Gaviota will open a further 1,297 rooms in Varadero in only two sea-sons”, added Oltuski. ■


Gaviota to build 30new hotels in Cuba

The group owns some 55 hotels with 24,000 rooms, over a third of Cuba’s total capacity

Por M. S.

M ax Corredores de Seguros is a key insurance agency in

the Dominican tourist sector, with 15% of its clients belonging to the hotel industry.

What has been the experience of Max Corredores de Seguros when working with hotel chains? What percentage of your client list belongs to the hotel industry?The experience has been very challenging, as the requirements of the tourist industry are very strict: most hotels are franchises with HQ anywhere in the world and they come to our country with guidelines they have to follow and fulfil. For that reason

we are constantly looking to improve our services as a specialised consultancy service in this sector, with the aim to satisfy their needs but also to analyse the risks they are exposed to, so they can comply with the required standards. Roughly 15% of our client list belongs to the hotel sector.

The fact that you also have offices in Bávaro shows your commitment to the tourist sector, what are your goals in the short term regarding companies and businesses in this area?That’s right; thanks to our branch office in Bávaro we are capable of offering a more efficient and personalised service, as it is one of the most developed areas for tourism. Our main target is to become

the leading insurance company for this sector.

Which are the main services you offer to hotel chains and the tourist industry in general?Analyse the specific risks that companies in the tourist sector are exposed to, as a good diagnosis can help shape the insurance policy; obtain the best payment conditions, guaranteeing permanence in their coverage; advice appropriately in the case of an accident, monitoring the process and enforcing the correct implementation of contracts and guaranteeing a better recovery of the loss; act as support staff, avoiding unnecessary operational costs within their company; guidance towards a more effective use of their insurance and obtain the best conditions in the market,

guaranteeing a good coverage-price

relationship. To provide these services we have branch offices in strategic areas, and a 24-hour service for claims.

What strategies have you implemented to secure your growth and gain new clients?We personally meet up with potential clients, with the support of a stakeholder bilateral communication plan that helps us develop market niches for related products. One of our main strategies is Market Development, in order to offer existing products but with an additional value through the extra benefits that the company offers its clients.

What sets the Dominican Republic apart from its neighbouring countries and what attracts new investors?The Dominican Republic, in spite of the international economic crisis has maintained an important growth rate. Our country has the greatest economic and political stability of the Caribbean. For most of the year the average temperature is above 20 ºC.“In addition to the good geographical location of the island, it’s proximity to the United States and Central America, areas that show a remarkable economic growth. Qualified and highly competitive workforce, together with modern infrastructures and services (international airports in the country’s most important areas, ports, roads, banks, schools, major development of the telecommunications sector) and low taxes on real

estate purchases, 3% of the property’s value.”

Which is the Dominican region with the highest demand for insurance policies?The Santo Domingo region, due to the high number of businesses, followed by the eastern region, as this is the most popular tourist destination. We credit the high demand for insurance policies in the City of Santo Domingo to the fact that it is the region with the highest concentration of vehicles, which is growing significantly, to the extent that this is one of the

sectors that have experienced the highest increase in the number of insurance policies sold. This month, compared with 2013, the sectors that are growing the most are: Agriculture and Livestock, 153.25%; Ships and Aeroplanes, 62.24%; Fire Protection, 22.53%. The sectors with a higher participation rate are: Fire Protection, 33.67%; Vehicles, 25.72%; Life and Group Liability, 16.22%.

Do you think that the Dominican tourist industry has a large growth margin?We think so, yes, as the Executive Branch of the Dominican Republic has laid down strategies and support schemes for foreign investment to continue developing in the sector. According to the reports of the previous months, published by the relevant organizations, the forecast for this next year is positive. It is expected that 30 thousand rooms will be built in the next 10 years, which will result in the arrival of more than 10 million tourists.

What have you done to face the crisis and encourage your

business in the country?Make the processes more efficient; develop differentiation strategies for the service; increase the channels used for the sale of insurance policies; cut down on expenses; optimize our technological

platform which is one of the most complete and advanced in the local insurance market; and provide constant supervision to the achievement of the goals proposed in any of the company’s areas.“In spite of the economic situation, in 2013 we were able to position ourselves among the first in this sector and we will continue to grow our client list with the aim of becoming the leader in the insurance market”. ■

Max Corredores de Seguros,a key insurance agencyin the Dominican tourist industry

María RojasVice-president

Jeannidalia GrullónPresident

Eric Lembcke Moreaux, Business Development

José María GónzalezBusiness Development East

Juan Manuel UreñaTechnical Vice-president

Among the most outstanding culinary experiences of Havana we find the three hotels managed by Meliá Hotels

International. The excellence that characterizes this prestigious company can be enjoyed at Meliá Cohiba, Meliá Habana and Tryp Habana Libre, highly renowned in the Cuban capital not only for their accommodation services, but also for hosting superb establishments where you can sit at a table and indulge in its delicacies on any occasion.

A rich mosaic of flavours will appear in front of the dinner guest: traditional and nouvelle Cuban cuisine, the best Italian and Mediterranean dishes, classic and avant-garde recipes from

the international cuisine, Asian and Mexican gastronomy, exceptional food and other pleasant surprises for the palate. And there is more. These hotels also boast wine cellars with a superb selection of wines, Havana cigar humidors, bars with small bands playing live and spectacular panoramic views, and nightclubs with professional performances and high-class mixologists.

The finest ingredients, celebrated chefs and a highly specialized service guarantee memorable initiatives with a quality that does not fade, in keeping with the seal that characterizes Meliá Hotels International throughout the world. ■


A taste of Meliá in HavanaThe three establishments of the hotel chain

in the Cuban capital are showing off their cuisine

Meliá CohibaAve. Paseo e/ 1ra y 3ra, Vedado, La HabanaTelf. (53 7) 833 [email protected]://www.facebook.com/MeliaCohibaCuba

Meliá HabanaAve. 3ra e/ 76 y 80, Miramar, La HabanaTelf. (53 7) 204 [email protected] https://www.facebook.com/MeliaHabanaCuba

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By R. C.

C uba, were tourism has a strong economic impact, is looking into encouraging the sector in every region of the country.

“We have implemented a development plan until 2030, with all the country’s regions and villages, for this product, well-thought for the long term”, has declared the president of the travel agency Havanatur, José Manuel Bisbé.

He has specified that amongst the main commercial strategies of the sector is the interest to

carry on including non-state offers in the country’s tourist product, in addition to local initiatives.

In this sense, he has highlighted the increase in the demand for said offers, which, he said, gain importance within the tourist product offered to national and foreign visitors. This is very positive because “two years ago this didn’t have a direct relevance”, he stressed.

Bisbé pointed out how both are part of travel agencies’ proposals, like accommodation at rented private houses, private restaurants, cooperatives and other programmes such as country fiestas

and parades, which are slowly becoming more popular.

These projects are also acknowledged within the development plan for their contribution to diversify the tourist offer, positioning Cuba in the international tourist market with alternative proposals to the sun and beach product.

This has led to the rise of the so-called historical and heritage tours, besides scuba diving and other sea activities, such as yacht and boat sailing, which are also included in the main strategy.

Bisbé has underlined the interest to continue promoting the island for event, conference and incentive holidays, in addition to the tourism that focuses on health, education and youth, weddings and honeymoons, and golf, all encouraged by the foreign investment through real estate projects. ■


Luz Marina Fornieles / Havana

T he Cuban tourism market has continued throughout 2014 with the upward trend it

enjoyed in 2013, when it registered a record of international visitors, estimated at 2,851,000 tourists. For this new season, the goal is to welcome 3 million.

The country is deter-mined to diversify its recreational offerings and, by doing so, to dif-ferentiate itself from its geographical competitors. In addition to its natu-ral, historical, architectural, heritage and cultural attractions, and its fame as a welcoming and hospitable coun-try, Cuba wants to prosper in many other directions. One of them is the

conference and convention sector, a market where it is already excelling, inside and outside Cuba, thanks to its human resources and infrastruc-ture.

NEW INITATIVES. In fact, for the last few months Cuba and its tourism industry have shown greater efficiency and dynamism, a fact that justifies the positive outcome for 2014. “We are optimistic about the current season”, has

declared the Minister for Tourism, Manuel Marrero.

“The importance of the sun and the beach in the island’s proposals has been reasserted, but hand in hand with its cultural and historical legacy. We feel optimistic about the

current season, although it will be affected by the economic crisis, as we have been preparing to take the leap in the quality of the services offered. But also thanks to the participation of the hotel groups, who have included refurbished rooms and new facilities”, added the Minister.

According to the Cuban Statistics and Information Office (ONEI), Canada maintained its position as most important source market, with 155,622 tourists from this country. It’s followed by France, Germany and Italy, also showing a significant growth. Although England, Argentina and Russia continue to be an important source market, there has been a decline in the number of tourists from these countries in comparison with the previous year.

BENEFITS. Tourism is the second most important source of income for the largest of the Greater Antilles, and last year it generated for the country profits for 1,804 million dollars.

According to this year’s forecast, tourism should grow by 10.4%; this implies that before December more than 3,150,000 tourists will visit the Antillean archipelago.

Regarding said goal, Minister Manuel Marrero himself has declared that countries such as Portugal –with the presence in Cuba of the Pestana Group–, Spain and Italy are awakening. “This will

not be an easy task, but we have to work harder in marketing the Cuban product, above all, to make the most of the contributions of the winter season”. ■


Mintur is expecting over 3 million tourists in 2014Cuba is determined to diversify its recreational offerings

Good outlookThe good forecasts have taken shape month by month, meaning we now have a sector that enjoyed a good takeoff with an increase of 9.3% in foreign visitors in January, compared with the same month in 2013, with a stronger presence of Canadians and Italians. Canada maintains its position as most important source market, which is helping to dissipate last year’s “modest” decline in visitors and achieve this year the 3 million tourist goal.

We are optimistic about

the current season

Cuba encourages community tourism

New development plan until 2030

A superior destinationUp to 40.1% of the tourists who have visited the Caribbean countries on the first semester of 2014 have described Cuba as a “superior” destination, while 14.3% consider it to be below the competition countries.

By Luz Marina Fornieles/Havana

C uba’s high season –from November to April– closed this year with record figures, welcoming 1.5 million tourists. This

suggests a very positive forecast for the low season.The origin of these figures is the increase

in the number of international visitors, which has boosted other relevant signs that indicate a recovery, such as the hotel occupancy rate and the revenue.

In fact, the country has registered 7.5% more tourists arriving every month. More specifically, the number of visitors grew by 8.8% in January alone, as explains Regino Cruz, business specialist of the most important local tourism organisation.

At the same time, senior officials from the Ministry of Tourism have pointed out that the season was well planned from the beginning to boost the influx of tourists, which had registered a slight decline according to the official data of the Cuban Statistics and Information Office (ONEI). This downward trend, although minor, was not felt only by the island, as the Caribbean region in general also went though a similar decline. The takeoff of these months of tourism prosperity was the landing in Santiago de Cuba of a flight operated by the Canadian tour operator Sunwing. Other routes followed this connection, from new source markets but also from regular European countries that had been affected by the economic crisis, causing a drop in the number of visitors from this geographic area.

MORE THAN EVER. During the 2013-2014 winter season campaign, Cuba not only has witnessed opening flights, but also an increase in the number of flights from regular airlines. In addition, 3,000 more rooms have been made available, the number

of cruises has increased and non-state tourism proposals have been included in the packages and programmes offered by travel agencies that work in the internal and external market.

Hotel facilities and new establishments have also opened. Among them, we can highlight the awaited reopening of the emblematic Hotel Capri, as its delayed refurbishment left much to be desired. Visitors can also enjoy three new Italian clubs in Varadero, Santa María and Cayo Largo.

We also can’t forget the work carried out in airport terminals, with an investment of over 10 million dollars. ■

The European market seems to be gradually recovering, as the number of tourists from France, Italy and Germany has shown an increase in the last months.

The Spanish market, on the other hand, is also showing signs of recovery, in addition to the Polish, Swiss and Swedish; although the number of visitors from these countries is slightly lower in comparison with other markets.

All these indicators seem to confirm that the positive figures of the Cuban high season are promising signs of the recovery in this sector. The forecast is to welcome, before the end of this year, a total of 3,000,000 international visitors, proving that the island has enjoyed the best campaign in its history. ■

The European market recovers


Cuba is optimistic about the current seasonThe previous season closed with 7.5% more tourists per month

Cruises arriving to the island

increased by 20%An important chapter in this story has been the increase in the number of cruises. In addition to the traditional operators, the island has welcomed the Canadian Cuba Cruise, the Greek Variety Panorama, the German Star Clipper, the English Thompson Dreams and the North American Semester at Sea, representing a 20% increase in the number of cruises.

In fact, Cuba is continuing with its development projects for the cruise industry such as the work carried out in Havana’s seafront to improve its harbour and receive cruises throughout the year, such as the Louis Cristal, from the Canadian company Cuba Cruise.

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