Eliana Willis

The United Nations World Tourism Organisation (UNWTO) and Neom have partnered for a new initiative focused on the future of tourism in Saudi Arabia.
The Tourism Experiences of the Future challenge will source innovative ideas and disruptive business models related to the tourism needs of the future, in line with growing demand for new experiences.
All proposals must be aligned with the Sustainable Development Goals, the UNWTO said, and should include the introduction or adaptation of digital and technological elements.
They will be focused on at least one of the following areas:

Optimising and maximising the potential of experiential tourism.
Harnessing the positive impact of new technology.
Alternative business models.
Innovative experiences.

The competition is the first national initiative dedicated to identifying new companies that will lead the tourism sector’s transformation in Saudi Arabia.
As well as established businesses, the competition also welcomes applications from Saudi Arabian start-ups and innovators with ideas capable of revolutionising and inspiring tourists by presenting new ways and reasons to travel.
Applications are open until October 24th, with great interest expected, and participants must be Saudi citizens with legal capacity to enter into a contract.
Successful projects will be selected based on various criteria, such as the degree of innovation, their viability and sustainability.
An affiliate member of UNWTO since 2019, Neom is located in north-west Saudi Arabia along the Red Sea.

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The UK government must scrap its existing travel policy in order to boost the economic recovery, argues the World Travel & Tourism Council (WTTC).
The body argues the recovery of the sector has been hampered by the lack of international coordination, severe travel restrictions and slower vaccination rates in some parts of the world, which are still in place in many regions of the world.
In 2019, the tourism sector generated nearly US$9.2 trillion to the global economy, however, in 2020, the pandemic brought the sector to an almost complete standstill.
This resulted in a 49 per cent drop, representing a punishing loss of nearly USD$4.5 trillion.
While the global economy is set to receive a modest 30 per cent year on year increase from tourism in 2021, this will only represent US$1.4 trillion and is mainly driven by domestic spending.  ADVERTISEMENTThe economic modelling was conducted by Oxford Economics on behalf of WTTC and calculated a baseline scenario based on the current global vaccination rollout, consumer confidence and relaxed travel restrictions in some in regions around the world.
The research reveals that at the current rate of recovery, the contribution of tourism to the global economy could see a similar moderate year on year rise of 32 per cent in 2022.
Last year, WTTC revealed the loss of a staggering 62 million tourism jobs around the world and with the current pace of recovery, jobs are set to rise by only 0.7 per cent this year.
Similarly, research shows a more hopeful potential year-on-year jobs rise across the sector next year, by a positive 18 per cent.
Julia Simpson, WTTC chief executive, said: “Our research clearly shows that while the global tourism sector is beginning to recover from the ravages of Covid-19, there are still too many restrictions in place, an uneven vaccine rollout, resulting in a slower than expected recovery of just under a third this year.
“The UK prime minister has an opportunity to help revive the sector faster by removing the UK red list policy and enabling stress free international travel for all of those fully-vaccinated.”

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The International Air Transport Association (IATA) has confirmed that Robin Hayes, chief executive of JetBlue, will continue his duties as chair of the IATA board of governors until next year.
He will stay in the role until the conclusion of the 78th IATA annual general meeting in Shanghai next June.ADVERTISEMENTHayes began his duties as chair of the IATA board in November last year.
Due to interruptions in the cycle of governance meetings as a result of the pandemic, Hayes’ mandate was extended beyond the normal one-year cycle.
IATA also confirmed that Pegasus Airlines chief executive, Mehmet Tevfik Nane, has been appointed chair-elect of the IATA board of governors.
He will begin a one-year term as chair at the conclusion of the Shanghai meeting.

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Tui Group has confirmed plans to issue new share capital valued at €1.1 billion as the battle to recover from the Covid-19 pandemic continues.
Some 523 million new shares will be used, a total of ten new shares for every 21 existing shares.
“Following transformation and restructuring of business areas and the relaunch of tourism in recent months, our focus is now on refinancing and reducing the utilisation of government loans.
“We want to, we can and we will find our way back to economic strength.
“We are working on this relentlessly. ADVERTISEMENT“The new TUI will be leaner, more digital and more efficient.
“But it will continue to set standards in tourism, in quality, innovation and sustainability,” said Tui chief executive, Fritz Joussen.
Unifirm of the Mordashov family supports the strategy and, as the largest shareholder of Tui, has undertaken to exercise all subscription rights attributable to its shareholding of 32 per cent and to subscribe to the new shares accordingly.
The remainder of the capital increase is fully underwritten with Barclays Bank Ireland, BofA Securities, Citigroup, Deutsche Bank and HSBC acting as joint global coordinators and joint bookrunners.
Commerzbank, Landesbank Baden-Württemberg and Natixis will act as joint bookrunners.
TUI intends to use the net proceeds of the capital increase to reduce interest costs and net debt by reducing current drawings under the KFW facilities.

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The International Air Transport Association (IATA) has reported that air travellers are increasingly frustrated with the Covid-19 travel restrictions.
A survey commissioned by the trade body of 4,700 respondents in 11 markets in September demonstrated confidence that the risks of Covid-19 can be effectively managed and that the freedom to travel should be restored.
Some 67 per cent of respondents felt that most country borders should be opened now, up 12 percentage-points from the June survey.
In total, 64 per cent of respondents felt that border closures are unnecessary and have not been effective in containing the virus (up 11 percentage points from June).
Finally, 73 per cent responded that their quality of life is suffering as a result of Covid-19 travel restrictions (up six percentage points from June).ADVERTISEMENT“People are increasingly frustrated with the Covid-19 travel restrictions and even more have seen their quality of life suffer as a result.
“They don’t see the necessity of travel restrictions to control the virus.
“And they have missed too many family moments, personal development opportunities and business priorities.
“In short, they miss the freedom of flying and want it restored.
“The message they are sending to governments is: Covid-19 is not going to disappear, so we must establish a way to manage its risks while living and traveling normally,” said Willie Walsh, IATA director general.
The biggest deterrent to air travel continues to be quarantine measures.
Some 84 per cent of respondents indicated that they will not travel if there is a chance of quarantine at their destination.
With the vaccination rates globally increasing, 80 per cent of respondents agree that vaccinated people should be able to travel freely by air.
However, there were strong views against making vaccination a condition for air travel.
About two-thirds felt it is morally wrong to restrict travel only to those who have been vaccinated.
Over 80 per cent of respondents believe that testing before air travel should be an alternative for people without access to vaccination.
“There is a message here for governments.
“People are willing to be tested to travel. But they don’t like the cost or the inconvenience.
“Both can be addressed by governments.
“The reliability of rapid antigen tests is recognized by the World Health Organisation (WHO).
“It is also clear that while people accept testing and other measures such as mask-wearing as necessary, they want to return to more normal ways of travel when it is safe to do so,” added Walsh.

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The Red Sea Development Company (TRSDC) has signed two memorandum of understandings with Blue Planet Ecosystems (BPE).
Signed by John Pagano, chief executive of TRSDC and Paul Schmitzberger, chief executive of BPE, the deal sees the entities pledging to investigate the implementation of a viable solution for sustainable high tech, CO2 negative fish production.
The Blue Planet Ecosystems’ solution proposed will provide sustainable production of seafood and algae in a desert environment.ADVERTISEMENT“In response to growing consumer demand for sustainable protein and to further contribute to the long-term protection and enhancement of ocean biodiversity, TRSDC strives to explore innovative technology solutions.
“Our partnership with Blue Planet Ecosystems, means working together to set a new global standard in sustainable, multitrophic desert aquaculture where we can literally turn sunlight into seafood,” said Pagano.
The Land-based Automated Recirculating Aquaculture (LARA) system works by replicating natural aquatic ecosystems in a modular and automated system.
LARA coverts CO2 directly into chemical-free seafood using phyto and zooplankton as transitional stages.
It is constructed of a tower of three horizontal units.
The top unit uses the sun’s energy to grow microalgae which powers the entire system.
The microalgae is then moved to the next unit down, where it nourishes zooplankton.
Finally, the zooplankton is then transported to the bottom unit, where it is eaten by fish.

“The LARA system has a minimal environmental footprint and will not only help feed our guests and residents sustainably but will aid in carbon sequestration for our flagship destination as well as future projects on the Red Sea coast, in alignment with the company’s aspiration to achieve 100 percent carbon neutrality,” added Pagano.
Algae can consume more carbon dioxide than trees because it can cover more surface area and grow faster.
Certain species of microalgae have been shown to efficiently remove CO₂ at a rate of more than ten times higher than terrestrial plants.
The first phase of the project will be implemented as a 3,500 m2 pilot, to assess whether conditions at the Red Sea Project are suitable for the solution to work effectively and efficiently.
This will be the first LARA pilot outside Europe to undergo a commercial trial.
Schmitzberger said: “It is fascinating to see what can be achieved when innovation meets a clear vision for a sustainable future.
“The Red Sea Project is demonstrating how the destination of the future will look and operate.”

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Leading trade associations representing the hospitality and tourism sectors in the UK have joined forces to call on the chancellor, Rishi Sunak, to introduce a permanent lower rate of VAT for these fragile markets.
The bodies argue such a move would help to safeguard their future, protect jobs and to accelerate the economic recovery.
Under treasury plans, hospitality and tourism VAT rises to 12.5 per cent from today and will return to its pre-pandemic level of 20 per cent come April next year.
Now the trade bodies – UKHospitality, the British Beer & Pub Association, the British Institute of Innkeeping, Tourism Alliance and the Association of Leading Visitor Attractions – are warning that unless VAT remains permanently low at 12.5 per cent, the government risks derailing the recovery at a time when businesses are still in survival mode.
Across the course of the pandemic, hospitality and tourism were the hardest hit sectors, with spend down £100 billion, 12,000 businesses permanently closed, and 660,000 jobs lost. ADVERTISEMENTHowever, the reduction in VAT helped protect hundreds of thousands of jobs and allowed many businesses to stay open and serving customers when permitted to trade.
In a joint statement, the trade bodies said: “Businesses are at a perilous stage of their recovery after what’s been a devastating 18 months.
“Costs are increasing and there are numerous operational challenges for them to deal with, specifically around labour and product supply.
“A reduction in VAT has helped many of our businesses survive to this point and was most welcome.
“However, the return of VAT to its pre-pandemic level next year would curtail investment, restrict growth, set back our tourism recovery and risk yet more painful job losses.
“We’re now calling on the chancellor to commit to introducing a permanent 12.5 per cent rate of VAT in his upcoming Budget, later this month.
“This will help protect jobs and continue the support for our hospitality and tourism businesses which contribute hugely to the nation’s economic and social wellbeing.”
Image: Louis Hansel

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