Thomas Cook to offset Arab Spring pinch with UAE boost

Thomas Cook, Europe’s second-largest tour operator, plans to ramp up its holiday packages to the UAE in 2012 in an attempt to offset losses caused by political unrest in the Arab world. The world’s oldest travel firm said it would broaden its tour offerings to a number of UAE emirates, to capitalise on the Gulf state’s safe haven status. “[The company] has expanded its portfolio of hotels in the fastest-growing destination in the Middle East, Abu Dhabi, to take advantage of this destination,” a spokesperson said in a statement to Arabian Business, adding its holiday offers had “expanded significantly”. “New product is available in Ras Al Khaimah, Ajman and in Dubai on The Palm. Abu Dhabi has been extended to include desert, beaches and island experiences, including Yas Island.” The company also offers package deals to Oman. Netflights, the internet-based travel agency bought by Thomas Cook in 2008, has featured the UAE for nearly 20 years but also plans to expand its packages available for the 2012 season. Thomas Cook said Nov 25 that it had secured a rescue package from its lenders after a string of profit warnings over the last year caused, in part, by assisting holidaymakers affected by the Arab Spring turmoil. The tour agency warned earlier this year it might be forced to cut at least 1,000 jobs and close nearly a fifth of its 1,100 stores. The cost of cancelled trips to Egypt and Tunisia and of repatriating customers took a £20m toll, the company said in February. Egypt previously accounted for around seven percent of Thomas Cook’s profits. The Arab Spring has taken a toll on tourism in cash-strapped nations from Jordan and Egypt to Morocco and Tunisia, costing the region more than $7bn, according to the Arab Tourism Organization in Jeddah, Saudi Arabia. The number of visitors to North Africa and the Middle East dropped 13 and 11 percent in the first half of 2011, said Taleb Rifai, of the United Nations World Tourism Organization. Tourism is the world’s third-largest industry, contributing $1.2 trillion - or 5.2 percent of the global economy - every year. The industry is responsible for one in every 12 jobs. The UAE is likely to see increased interest from foreign tour operators as they struggle to find new Middle East locations to replace protest-hit hotspots such as Egypt and Tunisia, said Basel Abu Alrub, managing partner of Dubai-based travel agency Utravel. “Not only Thomas Cook is expanding their package in the UAE, but all other major players as well,” he said. “This is indicative of the booming tourism sector in the UAE which, comparatively speaking, was not entirely impacted by the economic crises.” Dubai and Abu Dhabi hotels saw a spike in visitors during the winter season, as travellers sought to avoid the Arab Spring turmoil, he said. Tourist arrivals to the Middle East are predicted to fall six percent across 2011 due to the impact of regional political unrest, the World Travel Market Global Trends Report 2011 said last month. The paper said the region would see a 1.8 percent decline in incoming tourist receipts, and that airlines would see a 10.3 percent drop in US dollar receipts.