The second day of the Arabian Travel Market brought a deluge of news from airlines, transport authorities and companies, and government-to-government cooperation. The government also unveiled targets and forecasts for the tourism sector for the year.

TOURISM TARGETS + OUTLOOK IN 2024-

Tourism is set to contribute 12% to the UAE’s GDP in 2024, up from 11.7% in 2023 and amounting to AED 236 bn, Economy Minister Abdulla bin Touq AlMarri said at the 2024 Arabian Travel Market, according to state news agency Wam. “Our tourism sector has been a dynamic force within our economy, contributing an impressive 11.7% to GDP [in 2023], amounting to AED 220 bn,” the minister noted.

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Dubai International Airport could see more than 90 mn passengers pass through this year, exceeding the 87 mn mark achieved last year, Dubai Airports Chairman Ahmed bin Saeed al Maktoum said, according to Wam.

DWC RELOCATION-

Flydubai will begin a phased transition to the Al Maktoum International Airport — also known as Dubai World Central — two years from now, CEO Ghaith Al Ghaith told Khaleej Times. Operations will be split between the two airports until Dubai International Airport is closed down completely, he explained.

Meanwhile, national carrier Emirates will shift its operations to the airport “in one go” by 2034, Emirates CEO and Chairman Ahmed bin Saeed Al Maktoum told Khaleej Times, emphasizing that the carrier will not split its operations throughout the transition period.

ICYMI- The design plan for the USD 35 bn new passenger terminal at the airport earned the green light last month, with plans to transfer all operations from Dubai International Airport to DWC within ten years’ time.

AIRLINE EXPANSIONS-

#1- Emirates expands refurbishment program to 191 aircraft: Emirates is expanding its multi-bn aircraft retrofit program, with plans to refurbish 43 A380s and 28 Boeing 777s, bringing the total to 191 aircraft, Emirates President Tim Clark said, according to a Dubai Media Office statement. The project initially included refurbishing 120 aircraft, including 67 A380s and 53 777s. To date, Emirates has refurbished 22 A380 aircraft, with the initial Boeing 777 set for an interior update starting in July.

The carrier also expanded its interline partnership with Saudi carrier flynas, connecting Emirates’ gateways in the Kingdom to destinations in the Far East, West Asia and Indian Ocean, and Europe through Dubai, Wam reports. It also inked agreements to boost tourism with Seychelles, Sri Lanka, and Hong Kong, Wam reported separately.


#2- Etihad eyes fleet expansion: Etihad Airways is considering purchasing a small number of aircraft from Airbus and Boeing over the next five years if delivery slots become available, in a bid to up its fleet to 150 aircraft from around 80 today, Etihad CEO Antonoaldo Neves told Reuters. The airline aims to add 10-15 new aircraft annually to meet its target, Neves added. Etihad is currently talking with lessors and plane makers to snag additional jets to supplement existing orders.

Background:Etihad parent company ADQ is eyeing potentially going after both a traditional IPO and direct listing on the ADX at the end of the year, with the offering expected to raise as much as USD 1 bn. The airline tapped Abu Dhabi Commercial Bank, Bank of America, BNP Paribas, and Morgan Stanley as joint bookrunners as advisors earlier this week.

Etihad Airways will expand its flight network to eight new destinations, including Jaipur, Bali, Al Qassim, Antalya, Nice, and the Greek islands of Mykonos and Santorini over the next two months, according to a statement.

eVTOLS-

#1- Flying taxis to take off in Ras Al Khaimah in two years: Ras Al Khaimah Transport Authority and Ras Al Khaimah Tourism Development Authority inked an MoU with vertiport developer Skyports to design, develop and operate a network of vertiports and electric vertical take-off and landing air taxis across the emirate, according to a press release. The air taxi network is slated to be operational by 2027.

REMEMBER– Plans are underway to launch flying taxis in Dubai and Abu Dhabi as soon as next year. Dubai’s Road and Transport Authority inked an agreement in February with electric aircraft developer Joby Aviation to launch air taxi services in the UAE by early 2026, with initial operations as early as 2025. Meanwhile, Abu Dhabi-headquartered aviation services provider Falcon Aviation inked an agreement with California-based electric flying car manufacturer Archer Aviation to launch Falcon’s air taxi services between the two emirates by 2025.

#2- Chinese electric air mobility company EHang has concluded the first demo flight for its pilotless eVTOL aircraft series EH216 in Abu Dhabi, according to a statement. EHang’s demonstration flight of the EH216-S — a one passenger aircraft — marked the first passenger-carrying demo flight in the UAE and Middle East. The EH216 series also includes two non-passenger aircrafts — the EH216-F for high-rise firefighting and the EH216-L for aerial logistics and cargo-carrying.

This has been in the works: EHang partnered with Wings Logistics Hub — the eVTOL-focused subsidiary of UAE investor Ethmar International Holding — moving into Abu Dhabi’s Smart and Autonomous Vehicle Industries (SAVI) Cluster to roll out its autonomous eVTOL aircraft in the UAE last December. Wing Logistics planned to purchase up to 100 units from Ehang with variants for aerial logistics, transport, and firefighting with deliveries set for 1Q 2024.

G2G COOPERATION-

#1- Dubai’s Roads and Transport Authority (RTA) inked an agreement with the Seoul Metropolitan Government to boost cooperation on public transport, Wam reported. This includes cooperation on autonomous driving, sustainable transport, bus rapid transit services, and mobility as a service, mainly through technology transfer.

The two sides will also cooperate on taxi operation, electronic booking, big data analytics, network planning and design, engaging the private sector in transportation projects, and the development of collection and payment methods.

#2- Al Marri met with Italian Tourism Minister Daniela Santanchè to boost investments in hospitality, aviation, and ease of travel for Emirati and Italian businesses, Wam reported. Al Marri also sat down with World Travel and Tourism Council President Julia Simpson to discuss exchanging expertise and on tourism trends.

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