News From the Middle East

MEA Sets the Pace for Airline Travel in the Middle East

By Elinor Garely

Travel to the Middle East is increasing as more business travelers acknowledge the economic importance of the region to the global economy, and leisure travelers, looking beyond Europe for a unique and value-priced holiday, find dollar and euro bargains in the area. Reuters recently reported that The Middle East registered the sharpest gains over the nine months, with passenger traffic rising 29.1 percent, followed by the Asia Pacific region with 25.3 percent and North America with 16.6 percent.

A significant reason for the increase of passenger traffic can be found by looking at Middle East Airlines, a major carrier based in Lebanon. In an exclusive interview with Nizar F. Khoury, the Head of the Commercial Department of Middle East Airlines, it was learned that this carrier, established almost 60 years ago, is a major player in the region, connecting Lebanon with important European, Middle Eastern, Gulf and African destinations. MEA, headquartered in Lebanon, began by servicing routes between Beirut, Syria, Cyprus and Egypt, slowly expanding service to include Saudi Arabia, Kuwait, and Gulf destinations. Through its merger with Air Liban, it promoted additional Middle East and European routes, extending its reach to Western Africa.

Since 1990 and the end of the Lebanon civil war, the MEA network has grown to include flights to/from such major gateway cities as Paris and Nice, London and Rome, Geneva and Copenhagen, Düsseldorf and Frankfort, Copenhagen, Athens and Istanbul, Kuwait, Doha, Abu Dhabi, Dubai, Dhahran, Jeddah, Riyadh, Jeddah, Cairo, Sharm el Sheikh, Amman, Lagos, and Accra. While MEA does not have landing rights in the USA, it serves US travelers through international gateway cities, having strategic alliances with Air France, Virgin, United and other major carriers.

From a net loss that exceeded $80 million in 1997 to a net profit of $22 million in 2003, MEA has actively streamlined its operations, developing a strategic marketing plan that encourages and supports loyalty from passengers to the airline. In addition, it has streamlined it purchasing program, developed a yield management system, and modernized its entire operation. When the Lebanese government committed to building a new international airport able to handle 6M passengers a year, it was clear that with MEA’s access to a world class airport, Lebanon would be positioned as an important transit point for flights to/from the Middle East and Gulf States, as well as Europe and Africa.

When asked about the addition of new routes to its marketing campaign, Khoury remarked that, “Growth plans focus on solidifying the current daily network of flights to existing destinations, and increasing the frequency of these flights. Looking to new markets and adding long haul routes is not currently planned.”

Addressing the specific needs of its passengers, MEA has thoughtfully provided large, comfortable seating in both business and economy class, found a way to deliver savory cuisine to both all class of service, and developed a customer relations ethic that well exceeds expectations. Although a regional player in a global marketplace, it appears that the internationally branded airlines could do themselves a favor, by flying MEA and perhaps “borrowing” some of the ideas that MEA has put in place, making it a strong player in a very competitive market.

Middle East Airlines
www.mea.com.lb

Positioning Lebanon for Continued Growth

By Elinor Garely

Pierre Aschcar the President of the Lebanon Hotel Association recently shared his observations on the expanding hotel and tourism environment with this reporter.

Starting in 1992, Lebanon claimed 2500 rooms, today there are 16,000 rooms available to travelers, and 3000 additional rooms are under construction with openings scheduled for 2006 and 2007. Major branded international players include Hilton, Marriott, Four Seasons, and the Grand Hyatt. These hotels are focused on serving selected European as well as Inter-Arab leisure and commercial markets.

Changing Views

There has been a change in the public’s perception of Lebanon. Finally this destination is being acknowledged as a country that is not only free, it is safe! Furthermore, the population is multi-cultural and multi-lingual, and visitors find European and Middle Eastern travelers and residents living and working together.

Aschar proudly points out that Beirut is known for its shopping streets and malls, international cuisine, and excellent service. Adventure travelers quickly learn that they can ski the mountains and swim the sea on the same day. Cultural visitors are delighted with Lebanese wine tastings, concerts, and international fairs. A viable growth market is health tourism as many first class hospitals and well trained doctors are available to provide excellent medical services for regional patients.

Target Markets

The Lebanese Tourism office and Hotel Association frequently participates in travel trade shows in London, Paris, and Berlin; however, government spending for tourism is limited, and over the years marketing campaigns have been directed toward European markets. Aschar noted that major political incidents create setbacks in tourism, directly affecting the European marketplace, so the current target markets are travelers from Russia, the Ukraine, and other Eastern European countries.

Lebanon Positioned to be an Up-Market Destination

In discussing plans for the future, Aschar said that Lebanon is being positioned to be the Little Vegas of the Middle East, with casino licenses available to developers who open casinos and hotels in the mountainous ski areas. To encourage cruise ships to arrive/depart from the seaside community of Byblos, a new port is being developed that will handle larger ships, as well as marinas for yachts to be anchored and rented. There are also plans to provide additional airports for landing private jets.

When questioned about current or potential competition, Aschar commented, “We are designing our own market niche; therefore a discussion of competition is not practical.”

 

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