The market for sustainable tourism is set to boom, with two-thirds of travellers saying sustainability is an important factor when choosing leisure holidays, a new survey showed.
The focus on green travel comes as tourism is bouncing back strongly from the coronavirus pandemic, with the sector expected to reach $17 trillion by 2027, compared with $11 trillion before the pandemic that damaged the industry, a July report by Bain & Company said.
About 64 per cent of the survey respondents said that sustainability considerations influence their choices.
The report said 66 per cent are willing to pay extra for more sustainable offerings and 57 per cent would recommend a holiday destination based on sustainability considerations.
Looking ahead, 73 per cent of consumers surveyed expect sustainability to become more important over the next five years.
“The uptake in sustainable tourism is driven by an appetite to travel sustainably and make more responsible choices,” Karim Henain, partner at Bain & Company Middle East, said.
Bain has developed a framework defining the components of sustainable tourism: environmental impact (eco-friendly transport and accommodation), social responsibility (diversity, equity, and inclusion standards), and community engagement (contract with locals), he said.
The global travel and tourism industry is facing increasing pressure from environmental campaigners to reduce its carbon emissions given concerns about the impact of billions of passengers who are expected to take to the skies in the coming years.
The Bain study aimed to better understand the behaviour and preferences of travellers interested in the Middle East and North Africa (Mena) as a destination. The research covered consumers from Germany, Italy, France, the UK, Saudi Arabia and China.
The research found that there is a “significant opportunity” among the “sustainability enthusiasts” segment of travellers interested in visiting the Mena region.
Bain defined sustainability enthusiasts as those who consider sustainability “extremely important,” both in their daily life and when travelling for leisure.
Sustainability enthusiasts were found in all markets surveyed, but their demographics varied by country, the report said.
For example, those from China and Saudi Arabia were mainly highly educated millennials, whereas their European peers were almost equally spread across age groups, income and education levels.
Sustainability enthusiasts represent an important market of untapped growth for the green travel and tourism industry, according to Bain.
For example, compared to other survey respondents, they are four times more likely to consider sustainability aspects as “extremely important” when choosing a holiday destination and seven times more likely to recommend a holiday destination driven by sustainability.
They are also 1.6 times more willing to pay for more sustainable choices, at a premium of 15 to 20 percentage points compared to non-enthusiasts, the Bain study showed.
“While we recognise that there is a 'say versus do' gap in terms of what consumers actually choose and how much more they are willing to pay for more sustainable choices, sustainability enthusiasts remain a significant segment that countries can tackle through different sustainability offerings,” the report said.
Egypt has launched several initiatives to improve the sustainability performance of its travel and tourism sector.
The North African tourism-dependent country aims to provide continuous support to eco-certified tourism establishments and businesses, increase sectoral awareness of sustainable operations and reduce the negative impact of harmful tourism development and practices.
Overall, Greece ranked first as the holiday destination perceived to be most sustainable, while Egypt ranked fourth.
However, the perception of Egypt significantly improved among sustainability enthusiasts, who ranked it second after Greece.
“Egypt has a significant opportunity to develop its sustainable tourism industry. If developed and positioned well, this will allow Egypt to tap into new tourist segments, expand the network of promoters for tourism in Egypt, and get a higher share of wallet,” the report said.
“A concerted effort and mobilisation from all players in the tourism ecosystem in Egypt is required to capitalise on this opportunity.”
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
Honeymoonish
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Arabian Gulf League fixtures:
Friday:
- Emirates v Hatta, 5.15pm
- Al Wahda v Al Dhafra, 5.25pm
- Al Ain v Shabab Al Ahli Dubai, 8.15pm
Saturday:
- Dibba v Ajman, 5.15pm
- Sharjah v Al Wasl, 5.20pm
- Al Jazira v Al Nasr, 8.15pm
SPEC%20SHEET%3A%20APPLE%20IPHONE%2015%20PRO%20MAX
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THREE
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Pathaan
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UAE%20medallists%20at%20Asian%20Games%202023
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Fifa%20World%20Cup%20Qatar%202022%20
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The specs
Engine: 3.9-litre twin-turbo V8
Transmission: seven-speed
Power: 720hp
Torque: 770Nm
Price: Dh1,100,000
On sale: now
MATCH INFO
Everton 0
Manchester City 2 (Laporte 45 2', Jesus 90 7')
Sholto Byrnes on Myanmar politics
'Top Gun: Maverick'
Rating: 4/5
Directed by: Joseph Kosinski
Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Unresolved crisis
Russia and Ukraine have been locked in a bitter conflict since 2014, when Ukraine’s Kremlin-friendly president was ousted, Moscow annexed Crimea and then backed a separatist insurgency in the east.
Fighting between the Russia-backed rebels and Ukrainian forces has killed more than 14,000 people. In 2015, France and Germany helped broker a peace deal, known as the Minsk agreements, that ended large-scale hostilities but failed to bring a political settlement of the conflict.
The Kremlin has repeatedly accused Kiev of sabotaging the deal, and Ukrainian officials in recent weeks said that implementing it in full would hurt Ukraine.
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
MATCH INFO
Manchester United v Manchester City, Wednesday, 11pm (UAE)
Match is on BeIN Sports
UAE currency: the story behind the money in your pockets
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