Etihad Airways plans to triple its passenger numbers to 30 million by 2030. Photo: Etihad Airways
Etihad Airways plans to triple its passenger numbers to 30 million by 2030. Photo: Etihad Airways
Etihad Airways plans to triple its passenger numbers to 30 million by 2030. Photo: Etihad Airways
Etihad Airways plans to triple its passenger numbers to 30 million by 2030. Photo: Etihad Airways

Post-pandemic 'revenge travel' has finished but demand is high, says Etihad executive


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Post-pandemic “revenge travel” is at an end, but that has not led to a dip in demand for flights, a senior Etihad Airways executive has told The National.

It is about a year since governments began to lift the Covid-19 entry restrictions that hit the travel and tourism industries hard as the disease spread around the world.

The removal of those curbs allowed travellers to release their pent-up desire to visit new countries, also known as revenge travel.

That has aided the recovery of the sector, with the World Travel and Tourism Council estimating that global tourism revenue would reach $9.5 trillion this year.

But Edward Fotheringham, vice president of global sales at Etihad, said frustrations built up during the pandemic were now far less important to the public’s travel plans.

The Abu Dhabi airline has this month moved to cater to the high demand for travel by opening new routes to Dusseldorf, Copenhagen and Osaka.

Etihad Airways is launching flights to Osaka this month. Photo: Nomadic Julien / Unsplash
Etihad Airways is launching flights to Osaka this month. Photo: Nomadic Julien / Unsplash

“People have talked about that ‘revenge travel’ after the pandemic, the huge amount of demand – and actually we are seeing that continue,” Fotheringham said from Copenhagen Airport, moments before the inaugural flight between the Danish capital and Abu Dhabi took off.

“I personally think revenge travel has finished and this is about that great demand, because through the pandemic people realised that connections with each other were the important part of travel.”

The National was onboard Etihad’s maiden flight to Copenhagen last week, which marked the airline’s first venture into Scandinavia.

Etihad’s chief financial officer, Raffael Quintas, told passengers and officials at the city’s airport that the flights were “a huge milestone” for the airline.

Fotheringham described the market as “just massive” and said Etihad aimed to “cover the whole of the south of Sweden and Denmark”.

“Etihad is looking at its 2030 journey and we plan to triple our passenger numbers to 30 million, we’re hoping to double our fleet and we’re hoping to double the number of destinations,” he said.

“We are always on the lookout for exciting new destinations. I’ve been in Dusseldorf, where we’ve reintroduced a flight after four years. Then there is Osaka in Japan.

“The network growth is absolutely fantastic and gives customers that great connectivity, either from Abu Dhabi, going around the world, or from Copenhagen.”

Nyhaven Harbour in Copenhagen is one of the Danish capital's most famous tourist spots. Photo: Ava Coploff / Unsplash
Nyhaven Harbour in Copenhagen is one of the Danish capital's most famous tourist spots. Photo: Ava Coploff / Unsplash

The Gulf has welcomed an increasing number of visitors in the past two years owing to global events including Expo 2020 Dubai and the Fifa World Cup in Qatar.

The UAE is also to host the Cop28 climate change summit between November 30 and December 12.

Hotel industry experts have said about a third of all rooms in Dubai have been booked for the first days of Cop28.

Fotheringham said Abu Dhabi tourism sector was also benefiting from an increase in visitors.

“Abu Dhabi is becoming a world city today, with all of its cultural attractions, like Louvre and all the ones about to open up, as well as the Sheikh Zayed Grand Mosque and also that entertainment side, be it the F1, be it Ferrari World,” he said.

“How Abu Dhabi Inc is investing around the world, that is driving more people into Abu Dhabi.”

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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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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Who's who in Yemen conflict

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Engine: 3.0-litre six-cylinder turbo
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Transmission: Eight-speed auto
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Infobox

Western Region Asia Cup Qualifier, Al Amerat, Oman

The two finalists advance to the next stage of qualifying, in Malaysia in August

Results

UAE beat Iran by 10 wickets

Kuwait beat Saudi Arabia by eight wickets

Oman beat Bahrain by nine wickets

Qatar beat Maldives by 106 runs

Monday fixtures

UAE v Kuwait, Iran v Saudi Arabia, Oman v Qatar, Maldives v Bahrain

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The flights

Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes. 

The hotels

Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes. 

When to visit

March-May and September-November

Visas

Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.

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Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

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The biog

Favourite food: Tabbouleh, greek salad and sushi

Favourite TV show: That 70s Show

Favourite animal: Ferrets, they are smart, sensitive, playful and loving

Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can

Name of first pet: Eddy, a Persian cat that showed up at our home

Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big

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'The worst thing you can eat'

Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.

Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines: 

Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.

Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.

Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.

Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.

Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.

Updated: October 05, 2023, 8:30 AM