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Progress made in Abu Dhabi, but greater opportunities lie on the horizon

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HE Saif Saeed Ghobash at the Seatrade Middle East Forum 2016 taking place in Abu Dhabi
Abu Dhabi’s cruise tourism sector is on course for exponential expansion according to Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi), the body responsible for the development of the emirate’s cruise tourism sector, delegates heard today at the 2016 Seatrade Middle East Cruise Forum being held in the UAE capital.

Welcoming delegates to the Forum, which runs at the Four Seasons Hotel Abu Dhabi at Al Maryah Island until December 14, HE Saif Saeed Ghobash, director general, TCA Abu Dhabi outlined how the cruise sector is now a primary niche product in the emirate’s tourism development strategy.

An economic impact and forecasting report by Oxford Economics, commissioned by TCA Abu Dhabi, Abu Dhabi Ports and Etihad Airways, signals that the Abu Dhabi cruise tourism segment achieved a compound annual growth rate of 10.7% in the last five years, and forecasts further sustained growth at a 10.5% CAGR to reach a total of 450,000 cruise passengers by 2020, rising to 808,428 in 2025.

This season, Abu Dhabi is set to welcome over 250,000 passengers from 137 calls by 26 ships – an increase of 21% over last year – in a season which runs until early June 2017.

The report findings predict that total direct spending from the cruise sector will increase by 71% to AED 417m(US$113m) by 2020, from a benchmark of AED 244m ($66m) in 2015. This is forecast to almost further double to AED 745m ($202m) by 2025.

Projections are that in this baseline scenario, the number of cruise ships calling at Abu Dhabi will increase to 258 by 2025, and this growth will sustain 2,117 direct and ancillary cruise sector jobs in the emirate.

Addressing the Forum, organised by Seatrade and hosted by TCA Abu Dhabi, HE Ghobash added: ‘TCA Abu Dhabi and its cruise stakeholders have worked hand-in-hand with leading cruise lines to develop infrastructure, streamline marketing effort and create a desirable cruise destination.

The TCA Abu Dhabi Director General reflected on a number of significant achievements which have laid the foundation for the projected growth since the UAE capital last hosted the Seatrade Forum in 2013.

Two major projects announced at the time - a permanent cruise terminal and a dedicated cruise beach stopover in the Western Region - have been successfully completed with the Abu Dhabi Cruise Terminal celebrating its first anniversary today and the official inauguration of Sir Bani Yas beach resort taking place on Thursday, remarked HE Ghobash.

Between them, Abu Dhabi Ports, TCA-Abu Dhabi, and Etihad Airways have been actively pursuing opportunities to achieve greater levels of growth year on year through developing long-term partnerships and cooperation between the relevant entities which adds more value to the services and facilities we offer explained Abdulkareem Al Masabi, evp Abu Dhabi Ports in his keynote.

‘Our approach has been marked by three principles; investment in infrastructure, creating a niche in the growing passenger market and ensuring maximum integration across the industry supply chain,’ he explained.

Darren Peisley, ceo of Hala Group, a dedicated travel and distribution arm of the Etihad Aviation Group, cited the fly-cruise package developed with MSC Cruises for travellers coming to the Arabian Gulf on Etihad Airways and joining their ship at Zayed Port as an example of the emirates collabotive approach to growing cruise tourism.

‘That strong partnership is continuing with MSC Cruises which has returned with the larger MSC Fantasia for the 2016/2017 season. The company also acts as a DMC for shore excursions and activities for the Sir Bani Yas Island and Beach Oasis as well as operating a range of excursions from the city’s cruise terminal,’ he said.

Established this year, Hala Group has links with airberlin, Air Serbia, Air Seychelles, Alitalia, Jet Airways, Virgin Australia and Etihad Regional. It is working with large cruise operators on air lift so that we can bring passengers here from core markets in Europe and the US, he concluded.