Monday, 17 July 2017

Qatar Crisis and its effects on Hospitality & Tourism Industry

Who can imagine that a whole country's hospitality & tourism sectors could face a sudden borders-closure by its neighboring countries?

In early June 2017, 3 Gulf countries (Saudi Arabia, United Arab Emirates and Bahrain) + an Arab country (Egypt) decided to cut all ties with Qatar amidst a political crisis. They have decided to close all border, prevent their citizens to go to Qatar and asking Qatari citizens to leave their countries within 12 days. This decision came after prior political unsolved issues among the countries. However, it is believed that it is the biggest political crisis in the region since the Gulf War in 1990s.

Without referring to the political challenges, reasons and differences behind this, let's focus on the Hospitality and Tourism sector which was the largest 'looser' in this crisis. Beginning with the transportation; Qatar Airways, Skytrax first voted airliner, was banned to land or use these countries; airspace plus Yemen and Libya. Etihad Air, Egypt Air, Gulf Air, Emirates, flydubai, AirArabia, Saudi Airlines ... etc. all stopped their inbound and outbound flights to/from Hamad International Airport in Doha. Passengers travelling to and from Qatar, in addition to those travelling using Qatar airlines to Manama, Abu Dhabi, Dubai, Riyadh and Cairo ... etc were in a mess. They faced troubling days trying to sort out their flight arrangements. Luckily all airliners have re-routed their passengers although it took sometime to get out of the sudden shock they faced especially with Qatar Airways offices being closed in these countries. It has been reported that 30% of Qatar Airways flights were affected, and since it cannot use the airspace of its neighboring countries, it had to find longer alternative routed through Iran and Turkey, or Oman and the Arabian Sea to reach Europe, Africa and Asia, costing more fuel consumption and consequently, more surcharges to the airliner. Although the focus was on Qatar Airways, it is believed that all airliners of the Gulf were affected as well, albeit on a lower scale.

In terms of logistics, cargo, shipments and normal transportation across the land and sea borders, the same story was repeated except for the international water that Qatari ships use. A huge disruption and long traffic congestion was seen in AbuSamra Border, the only land crossing point Qatar has to the rest of the world through Saudi Arabia. Food and raw materials supplies were hit as Qatar relied heavily on importing its needs from Saudi Arabia and United Arab Emirates, which affected the supplies in the country.

Several reports have been published on the Qatar World Cup 2022. Construction which relied on materials arriving by land was said to have been affected. Around 5 countries were reportedly writing to FIFA to reconsider its decision of the 2020 host.

In terms of tourism, Qataris which relied on visiting Bahrain and Dubai by land for their short holidays such as Eid, now faced a challenge of either staying home or deciding to go on longer journeys by air.

On the bright side, and since this is an educational exchange online spot, let's discuss what opportunities were extracted from this crisis.

Qataris increased their sea ports' potentials and doubled or perhaps troubled their daily sea shipments to/from Omani ports in a way to ease the economic sanctions. Now it is believed that materials come to Hamad port in Qatar through Sohar's port in Oman. Iranian officials also announced that 3 southern ports will be available to Qataris whenever they asked for them.

Qatar Airways started leveraging its strengths by launching new destinations. Now this airliner got approvals and necessary licences to accelerate its flights from/to Sohar Airport, a new Omani airport established in the city of Sohar, very close to the east of United Arabi Emirates (esp RAK emirate). This means that the airliner is expanding regardless of the embargo.

Moreover, as British Airways underwent a strike from its employees, Qatar Airways took this opportunity to rent its jets supposedly with the crew to BA, in a win-win situation with possibly the losers of this business deal being the strikers, are they?

Many Qatari Hotels and Restaurants promoted their services to Kuwaitis and Omanis free of charge, in an attempt to increase inbound Gulf tourism and strengthen socio-cultural ties with the only 2 remaining countries in the Gulf which did not cut ties with Qatar.

On another side, Turkey and Iran started supplying Qatar with perishable goods, such as fruits and vegetables in addition to diary products and poultry. Qataris started campaigning their citizens to buy national products while the national companies started operating on their maximum scale, and even expanding further. Qatari authorities started the largest livestock airlift, perhaps in the history of mankind, by importing thousands of cows and sheep by 'air'! This shall address the shortages of diary products and certainly meat in the coming months and years, perhaps for Qatar to be self dependent by 2022 and further!

So dear readers, who said politics has nothing to do with hospitality and tourism?


Links:

http://www.businessinsider.com/qatar-airways-saudi-arabia-uae-ban-2017-6

https://www.usatoday.com/story/travel/flights/todayinthesky/2017/07/03/british-airways-rents-qatar-air-jets-help-through-cabin-crew-strike/447522001/

http://www.telegraph.co.uk/news/2017/06/11/iran-sends-five-planes-vegetables-qatar/

http://money.cnn.com/2017/07/12/news/qatar-flying-cows-milk-shortage/index.html

http://www.independent.co.uk/travel/news-and-advice/qatar-airways-doha-airport-diplomatic-incident-flights-affected-empty-planes-is-it-safe-a7843311.html

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