Located in the northwestern corner of Turkey, Bursa is the country’s fourth-largest city, with a population of nearly three million. While often celebrated as one of Turkey’s most industrialised and culturally charged metropolitan centres, Bursa is also referred to as ‘Yeşil Bursa’ – meaning ‘green Bursa’ – as a nod towards the beautiful parks and gardens that are scattered throughout its urban network. Vast forests and the towering Mount Uludağ provide an idyllic backdrop for this most diverse of cities.
Hilton Bursa’s stunning interior design reflects the rich historical heritage of the fascinating city in which it is situated
Mausoleums of early Ottoman sultans are situated throughout the city, with numerous edifices that were built throughout the Ottoman period comprising the city’s main historical landmarks. The city’s thermal baths, surrounding fertile plain and its selection of museums – most notably its renowned museum of archaeology – are all attractions that continue to draw in visitors, both from across Turkey and the rest of the globe.
Award-winning luxury
Located within the very heart of this diverse and vibrant city is the Hilton Bursa Convention Centre and Spa. The hotel is dedicated to providing its guests with luxury, comfort and quality service, all within easy reach of the bustling city centre. The hotel set a new standard for the entire Hilton collection only one year after it opened, winning a Hilton Award of Excellence in 2013. In recent years it has also won a string of industry awards, including being named the best-managed city hotel by the Turkish Association of Professional Hotel Managers (POYD). The Hilton Bursa was the first hotel in the city to receive such an award.
Hilton Bursa’s stunning interior design reflects the rich historical heritage of the fascinating city in which it is situated, with its recurring turquoise and cream designs reminiscent of ancient Anatolian marble, tiles and ornaments. This classical style resonates throughout the hotel’s 187 luxurious rooms, including 12 suites, allowing guests to experience the utmost comfort and indulgence for the entirety of their stay.
Diverse activities
The Skylight Restaurant and Bar is located on the 18th floor of the hotel, offering guests breathtaking views of Bursa and Mount Uludağ while they dine. Additionally the hotel’s Brasserie Restaurant can be found on the ground floor, serving breakfast, brunch and colourful Italian dishes every lunchtime, as well as offering a private dining room for business functions. Guests can also enjoy tea, aromatic Turkish coffee and a selection of cakes and homemade chocolates at Hilton Bursa’s Patisserie Vivienne.
Guests who find themselves in need of relaxation during their stay can visit the Aneta Spa and Wellness Centre. Offering a fitness suite, indoor pool, sauna, steam room and a Turkish bath, the spa also provides massages and a variety of special treatments. For those seeking a little more excitement, the hotel is a short distance away from Bursa Zoo and the Botanical Gardens, and is located only 45km away from theUludağ National Park. Or, for guests wishing to stay a little bit closer to home, the hotel’s own Speedcity Entertainment Centre boasts Formula 1 simulation cars, as well as regular Latin dance nights.
Hilton Bursa offers a variety of meeting facilities, including a ballroom that can serve up to 800 guests banquet-style, 12 interconnecting meeting rooms and three VIP lounges. Providing the perfect setting for business and social functions alike, Hilton Bursa Convention Centre and Spa is the ideal location for memorable dinners, dynamic meetings and luxurious accommodation.
Much has been made of East Asia’s ballooning middle class, as consumers there turn away from familiar street-side stalls and choose instead to fork out that bit extra for world-recognised brands. It’s a phenomenon that has seen many a corporation head eastwards, and hundreds of thousands of holidaymakers pick up the extra travel catalogue or two. However, the development is in no way exclusive to the Asian continent. The same demographic changes can be seen across sub-Saharan Africa, where Western names are looking to cash in on a lesser-known, and more uncertain, transformation.
When talking about Africa as an up-and-coming retail destination, it’s usually the northernmost portion of the continent that receives the most attention. However, sub-Saharan Africa’s burgeoning middle class and rock-solid fundamentals mean that the world is finally beginning to sit up and take note.
Out of the 300 million people in Africa, half are what you call the ‘floating middle class’. They could revert into poverty very easily
“The growth of the sub-Saharan African middle class is the result of a range of interrelated factors including strong economic growth that has resulted in higher GDP per capita and increased purchasing power, high commodity prices, relative political stability, high commodity prices, business environment improvements, and mobile phone proliferation, which has increased the reach of a wide range of businesses”, says Matthew Searle, Head of Sub-Saharan Africa Country Risk and Financial Markets at Business Monitor International. And while the level of development falls short of the more promising Southeast Asian market, the opportunities for retailers are widespread, if complicated.
Growing opportunities
According to UN statistics, Africa’s one billion-plus population is on course to reach 1.5 billion by 2030 and two billion in the 15 years that follow. By 2071, Africa’s population will be greater than those of India and China combined, meaning that, for retailers, the continent is impossible to ignore. True, a large population does not necessarily guarantee more opportunities – but the facts state that Africa’s middle class is 30 percent greater than it was in 2000 (according to the African Development Bank) and stands ready to spark the beginnings of a new era for retail.
Rising household incomes together with a string of positive indicators mean that those in sub-Saharan Africa are making their way up the ladder, and a budding middle class is bringing explosive and positive change for a place that has long been handicapped by lack of opportunity. Research conducted by Johannesburg-based Standard Bank shows that the number of middle class households is set to rise from 15 million currently to 40 million by 2030, with Nigeria – currently boasting the continent’s largest economy and population – leading the charge.
“The growth has led to increased demand for modern retail formats and shopping centres, as well as for products that were not widely available in the past”, according to Thomas Verryn, Research Manager at Euromonitor International. “Sub-Saharan consumers, with increased spending power, are increasingly looking for high quality products.”
Uneven distribution
The region’s headline economic performance and rising middle class makes for attractive reading. However, the task for retailers is a difficult one: the growth is unevenly distributed, and the purchasing power of Africa’s so-called ‘middle class’ is not as significant as the label might suggest.
“There is a middle class in Africa, and it has been growing at a rate of 3.2 percent per annum since 1983. You have over 300 million people who are sitting in the middle of the pyramid, as I like to call it”, said Chief Economist and Vice-President of the African Development Bank, Mthuli Ncube, in an interview with IMF Survey. “But there is a distinction. Out of those 300 million people in Africa, half are what you call the ‘floating middle class’. They could revert into poverty very easily because of a death in the family, or some other shock. At any given time, there is always a floating middle class. Then there is the more stable part of the middle class – about 150 million people – and they are [the] ones who provide robust growth.”
Although studies show that sub-Saharan Africa’s middle class is growing, 86 percent of households in Standard Bank’s sample still sit in the low-income band. Unlike in advanced economies, Africa’s middle class tag does not necessarily mean that individuals can enjoy a decent standard of living. According to the African Development Bank, any individual earning between $2 and $20 a day falls into the African middle class category, which means that even basic services can fall outside of their financial means. “When one considers that the definition of absolute poverty is those living on less than $1 per day, it will not take much for an African to move from middle class to poverty”, says Searle.
Looking ahead
Western retailers looking to enter sub-Saharan Africa, therefore, must make a distinction between the Western and African middle class – while those in America, for example, may stretch to an iPhone and a designer jacket or two, many in sub-Saharan Africa struggle to meet health insurance payments.
The situation means that the types of retailers targeting the region currently fall into two distinct categories: those selling low-cost, high-volume goods and those targeting Africa’s newly affluent population. “Demand in sub-Saharan Africa is split between a lot of people who are buying beer (just out of poverty) and a small elite buying Porsches (elite) without much in between”, says Searle. “This is the big difference from a lot of Asian countries, where you see the emergence of an actual middle class, as many in the West would think of it. Related to this, Asian consumers are more likely to purchase from formal outlets whereas people in sub-Saharan Africa will purchase from informal outlets.”
The unavailability of land, inadequacy of suppliers and regulatory restrictions in key sub-Saharan African economies pose a considerable challenge to those unfamiliar with the territory. However, for those willing to weather the storm and wait out the immediate problems, a presence in Rwanda, Nigeria or Namibia, for example, could prove invaluable in the years ahead, as disposable incomes increase and consumers, increasingly, favour Western brands.
Of all the big name brands to have set up shop in sub-Saharan Africa so far, nowhere else has there been more success than in the luxury goods sector, where consumers are offloading their newly acquired wealth by the billion. One Bain & Company study shows that the continent’s luxury market is currently worth approximately $2bn, with sales having risen 35 percent over the four-year period.
However, if the performance is to filter down into less than luxury retail segments, what’s important is that Western retailers tap into African consumers and understand how it is they differ from those in mature markets. Searle says, “Rather than being a single consumer market, sub-Saharan Africa is comprised of a patchwork of relatively small economies, which are poorly connected due to poor infrastructure and burdensome bureaucracy. This means that rather than being able to access the large pool of regional sub-Saharan Africa consumers, retailers are forced to focus on individual countries or small groups of countries.”
“Retailers often make the incorrect assumption that all markets in Sub-Saharan Africa are the same, which can cost them dearly. They need to consider that Sub-Saharan Africa is vast, and that each country has its own unique challenges”, says Verryn. “As with any major investment anywhere in the world, [it is] important for retailers to do their homework before entering a new territory. Cultural, regulatory and governance nuances all pose potential challenges to new entrants.”
Clearly the complexities number in the many, but what’s certain is that consumers in sub-Saharan Africa are gravitating towards Western products and services, and retailers must put aside both time and money to meet an entirely unique set of circumstances.
Lush green meadows and cascading waterfalls have long been favoured for postcards and hotel lobby landscapes, yet the profit-making potential of these subjects is seldom talked about in investment circles. In years past, natural ecosystems have been damaged beyond repair as host countries have looked to the land and the resources contained within it as a stepping-stone on the way to economic prosperity. A new report from NatureVest, however, shows that investors are beginning to recognise the importance – and financial viability – of preserving these landscapes.
Defined as travel that conserves the environment and also benefits the welfare of local people, ecotourism is among the travel and tourism industry’s fastest-growing sub sectors
“Up until very recently, most of what we call natural capital, or the soil, water, and clean air which all life depends [on], was not factored into the cost of doing business”, says Marc Diaz, Managing Director of NatureVest. “Over the past few years, this has begun to change with companies (and governments) now recognising the importance, or the value, of these [natural] assets that were once taken for granted.”
Irresponsible business practices have pushed any number of natural ecosystems to the brink of survival, and the industries that rely on them – tourism being chief among them – are looking to a saviour before the issue gives rise to yet more grey buildings in once green spaces. With concern for environmental preservation, ecotourism and conservation investment on the up, spoiling said ecosystems could be a thing of the past.
Investment in conservation
If history is anything to go by, the protection and preservation of these places is a mandate that concerns only governments and multilateral agencies. However, a recent NatureVest report shows that attitudes towards conservation are shifting – and that, more importantly, investors are beginning to make a difference.
Impact investment was scarcely a recognisable term until the dawn of the 21st century, at which time investors finally began to realise the importance (as well as the profit-making potential) of socially and environmentally responsible causes. “We define conservation impact investments as investments intended to return principal or generate profit while also driving a positive impact on natural resources and ecosystems – specifically, decreased pressure on a critical ecological resource and/or the preservation or enhancement of critical habitat”, according to the NatureVest report.
According to NatureVest figures, conservation impact investment amounted to a cumulative total of $23.4bn from 2009 through 2013. This was largely owed to development finance institutions (DFIs), whose response to a widening funding deficit has been to up their commitment to environmental protection. Still, the most important figure to take away from the report is that the market for conservation impact investment is on course to expand threefold in the coming five years, bolstered by an influx of private names into the mix.
Environmental concerns
Discussions concerning the effects of environmental degradation on both the land and on nearby communities have been gaining momentum recently. And without committing more funds to environmental protection and conservation, coastal populations and rural communities could find themselves put in serious harm’s way. For too long, climate change has been little more than a peripheral concern for countries whose nosedive into industrialisation has resulted in economic prosperity. However, it seems that now the time has come for investors to stand up and take note of the consequences.
“Investing in conservation has historically been philanthropic and public sector-led”, says Nick Oakes, Finance Programme Manager at the Global Canopy Programme. “Impact investment, which can generate a financial return and can be a route for private sector money, has typically targeted investments with social impacts, but increasingly there is a small but growing focus on investments that generate an environmental impact (e.g. conservation).”
The world’s population is tipped to peak at approximately nine billion before 2050, and the disparity between the consequences of environmental degradation and the resources dedicated to it gives serious cause for concern. The Global Canopy Programme estimates that close to $300bn is needed every year to adequately address the world’s conservation challenges, yet studies show that investors mustered only $50bn last year.
“The small growth of private investors interested in conservation – and indeed investors in environmental protection more generally – is far lower than the scale of funding that is needed to avoid dangerous climate change”, according to Oakes. However, given the present amount dedicated to conservation, the part played by private investors is of increasing importance.
The rise of ecotourism
One key area where this concern for environmental protection is abundantly clear is in the ecotourism sector, which has recently enjoyed a period of sustained growth and still shows promise for the years ahead. Defined as travel – particularly to natural areas – that conserves the environment and also benefits the welfare of local people, ecotourism is among the travel and tourism industry’s fastest growing sub sectors. Countries such as Costa Rica and South Africa are buoyed in large part by it.
“Right now, the direct link between ecotourism and impact investing is the on-the-ground projects that The Conservancy’s NatureVest is working to fund”, says Diaz. “Successful conservation projects do more than protect lands and water, they also support, in some cases, local economies like ecotourism. For example, NatureVest is funding a Livestock to Markets [programme] in Kenya that is focused on preserving grasslands that sustain wildlife such as elephants and zebras. These animals, in turn, draw tourists and diversify the range of economic opportunities for local communities.”
Beginning most significantly in the 1990s, eco tourists then started to consider what consequences their actions might bring for the community and the environment. And whereas the eco traveller profile was originally construed as any person who chose to visit exotic locales, the term has since taken on greater meaning and applies to all manner of socially and environmentally responsible persons. Once a niche market for only a limited number of individuals, the ecotourism market has come to represent an estimated quarter of the world’s travel and tourism market as a whole.
This focus on responsibility has also added another layer of value to the hospitality business, as hotels and operators look to incorporate greater lengths of sustainability – and, in doing so, boost their standing in an industry where reputation is everything. In a time where changes to the tourism industry, such as the rise of low-cost carriers and an emergent Asian middle class, have been well-documented, this focus on sustainability has been somewhat neglected by the wider media – not to mention by the investment community itself.
Interests converge
Taking into account the burgeoning ecotourism market and a growing call to reduce environmental degradation, it’s no surprise that the number of private parties invested in conservation is on the up. In a climate where natural ecosystems – or ecotourism hotspots – are falling foul of wayward emissions, private investors could even represent a means of preserving ecotourism’s prospects for decades to come.
In only the next five years, private investors plan to deploy close to $5.6bn in conservation impact investments; far and above the $1.9bn made through 2009 to 2013. Speaking to those responsible for NatureVest’s report, conservation objectives remain the primary reason for investment, though financial performance is also a factor – and for as long as there is money to be made, more investment will come.
Now that investor concerns are beginning to align with those held by travellers, green – and not grey – could be where the money is headed. Generally speaking, popular tourist destinations have kept to a tried and tested course, whereby idyllic or ‘undeveloped’ areas are quickly made into bustling metropolises of hotels and fast food chains. However, the growing number of private investors interested in preserving key areas could disrupt the age-old progression that we’ve seen time and again among the world’s more popular destinations.
When there is pressure to protect natural ecosystems, authorities are more willing to commit the funds to do just that. However, when there is actual financial incentive to protect these areas, those same authorities surely cannot help but sit up and take note of the changed situation. If there is truly a change at hand, with investors looking to protect natural ecosystems against environmental damage, we could hopefully see explosive growth for the ecotourism sector in the years to come.
Canadian explorer, writer and photographer Jeff Fuchs has been exploring and documenting ancient Himalayan trade routes for nearly 10 years. While delving into the unknown and negotiating one of the world’s most treacherous areas, Fuchs has become enamoured with the narrative cultures of its indigenous people.
There’s something we call the ‘thousand-yard stare’ after an expedition – you have this glazed look of disinterest when you arrive back into civilisation
Fuchs has gone from embarking on expeditions along tea, salt and wool trade routes to leading his own tours, writing a book, lecturing students and co-founding his own tea company, Jalam Teas. He spoke to Business Destinations about what fascinates him about the region, and what lies in store for one of the world’s greatest Himalayan adventurers.
Your most recent adventure was a 36-day expedition along the Route of Wind and Wool. What inspired you to undertake the journey?
The whole basis of the journey was to get into the oral narratives and trace the source of what’s been the best pashmina wool for centuries. The journey was a bit of an exploration, in that we often didn’t know if we were on the right track. Every few days we’d meet with elders – the last remaining ancients – and they’d either corroborate that we were on the right route or tell us we were on a different strand.
One of the aspects of all of these Himalayan trade routes is the physically daunting aspect at first, and then you realise that there are all these corridors – linguistics, traditions – passing through, and that this was going on for centuries. Large-scale Himalayan trade on the backs of yak and sheep was going on until the 1950s and 1960s, and it’s still going on in smaller portions now.
The convoy’s ‘caravan’ makes its way past a monastery during a blizzard, while travelling along the Salt Road in southern Qinghai province
What was the highlight of the journey for you?
One of the highlights was to meet with this clan of nomads called the Carnac people at the end point of our journey – it’s something quite marvellous when you meet people living in complete harmony with their surroundings and watching their own traditions. Pashmina is still selling, they’re still producing, and their methods of production and living are virtually unchanged from 300 years ago.
And when I showed them pictures on my computer of nomads living 1,500km away, one of the elders said – this was extraordinary, I got a ball in my throat – “We’re not alone.”
That was, for me, one of those ‘eureka’ moments.
What is it that fascinates you about indigenous cultures?
I look at them as bastions of civilisation. They haven’t yet been drawn out to modern amenities, and they have a need to communicate in order to pass along their traditions. I think in an age where we can’t really converse for more than an hour, there’s something beautiful about that. I also love the way they eat, the way they live. They’re intuitively sustainable.
You were the first documented Westerner to travel the Ancient Tea Horse Road. What was the most challenging part?
One of the most challenging things about leading an expedition like that is making decisions you have to be content you made. You might risk people’s lives – people that you’re living with 24/7. And I guess there was a point two months into the Tea Horse Road, where you wonder, “Okay, not sure this is entirely possible – where do we go, and will we ever see human beings again?” So I would say the Tea Horse Road was an odyssey, mentally as well as physically.
The sacred Kawa Karpo mountain range in northwestern Yunnan
What inspired you to undertake these expeditions?
I was a mountaineer when I was young – the mountains have always held me. And I’ve got this insatiable hunger and curiosity. With this whole Himalayan obsession I have, one of the big motivations is to use some of what I’ve seen to create a different way of looking at the mountains. Hopefully by knowing a little more, we’ll be more interested in trying to preserve them and what’s in them – so that the Himalayas of 50 years from now aren’t just a dry, tortured place of a few snow peaks.
What’s it like returning to the busy modern world after several months of isolation?
I need a week or two to decompress and recompress. I feel like I’m sort of slowly being taught how to function in a civil society, to not worry about people plunging down a ledge.
There’s something we call the ‘thousand-yard stare’ after an expedition – you have this glazed look of disinterest when you arrive back into civilisation. You’re never really looking at anything; you’re kind of looking at a horizon. That happens every time. What’s amazing is when you finally realise you’re back, and you’re able to mentally and physically function again.
Where did your passion for tea first spring from?
I went to Taiwan about 15 years ago and got thoroughly ripped on really good tea and watched the sun come up with a bunch of Taiwanese, and I thought, “I’ve got to understand more about this.” The same things that bind me to mountains and oral narratives bound me to tea – it’s got this incredible history, it’s an incredible cause for the good.
A nomadic woman gives her horses a rare yak milk treat near Litang in western Sichuan province
What was the idea behind Jalam Teas, the business you co-founded?
The idea was to make an offering to the public; to hand-source and curate rare teas that used to travel along the trade routes into Tibet. We wanted to tell a story with each tea – what the altitude is in the areas they’re sourced from, what the indigenous people use it for, and so on.
We wanted to do something really small – we thought it would be North America, maybe pockets of England and France, but we’ve ended up offering subscriptions in 13 countries. Each client will write what they like and don’t like about the teas, so we have this dialogue going on as we’re doing business. It’s that wonderful old way of, somebody likes your teas and they talk to somebody else, and it gradually spreads into these little nooks of tea-drinkers.
Can you tell us a bit about the tours you offer with Wild China?
It’s a small, brief grazing of the surface of the Tea Horse Road. The origins of all teas on the planet are in southern Yunnan, but it’s not just about tea and horses. Clients can literally drink barley whiskey with the local headsmen – to some degree it’s a bit of an exploration and a delving into the minority cultures’ relationship with tea and to each other.
It’s a bit of a niche stretch to get people to want to come on a trade route [tour], so it’s sometimes hit and miss – you’ve got to add some wonderful little snippets and essences onto the trip and see how it goes. It’s worked, but it’s still something that only tea junkies or genuinely Yunnan-minority obsessed people come on.
The group’s ‘caravan’ makes its way along an old pilgrimage and trade route in northwestern Yunnan
What are your goals for the future?
I will continue to do the expeditions for as long as the joints and kneecaps and ligaments don’t decay. I’m going to be working with the Explorers’ Club, which is exciting because there’s a climate change element to it. I’ll be leading expeditions into Ladakh and Zanskar to look at glaciers, water sources and the sustainability of practices and cultural aspects in the Himalayas, with the potential of setting up a kind of mountain preservation society.
We’re also going to try and set up a tea farm in Hawaii to promote tea culture in this part of the world. And that’s probably it. Those two things are kind of on my reel of expectation and hope for the next years.
And finally, where do you feel most at home?
I need snippets of both. I can’t imagine not having my silences in the mountains, but it’s also a nice feeling coming back and being able to relate what you’ve seen to people, and having a home. That idea of home – of one fixed physical place – is becoming a much more important concept in my life.
“The adverse reaction people have to excessive pressures or other types of demand placed on them at work”: this is how the Health and Safety Executive defines work-related stress, which, according to studies, affects near enough every individual at some point or another in their life. Chances are, therefore, that you’ve suffered the effects of work-related stress, whether manifested in mental, physical or emotional form. And in a climate where workers are being asked to manage increasingly heavy loads and juggle greater numbers of tasks than ever before, people are beginning to pay much closer attention to their health and wellbeing.
The largest survey of its kind, carried out by Harris Interactive last year, found that 80 percent of American workers could identify at least one thing that causes stress in the workplace, with the most-cited causes being low pay, long commutes and unreasonable workloads. “More companies are hiring, but workers are still weary and stressed out from years of a troubled economy that has brought about longer hours, layoffs and budget cuts”, says John Swartz, Regional Director of Career Services at Everest College. “Americans have plenty of reasons to be optimistic, but anxiety among employees is rooted into our working lives, and it is important to understand new and better ways of coping with the pressure.”
The growth of wellness tourism has been fuelled by a growing number of well-minded consumers whose wish it is to incorporate healthy habits and activities into
their holiday
Sadly, the scale of the problem is an inescapable consequence of the economic downturn, and while the effects are detrimental for both workplace productivity and morale, the situation has given rise to benefits in unexpected places. Discussion on the subject of workplace stress means that there is far greater awareness about the issues caused, as well as what measures – from the routine to the obscure – can be taken to address the problem.
Wellness tourism
Those in the wellness tourism industry have spoken at length about the role of workplace stress in bringing leading business names to consider spa and wellness destinations as a welcome retreat away from the office. The Global Spa and Wellness Economy Monitor report, put together by the Global Wellness Institute in September 2014, shows that the wellness economy came to $3.4trn in 2013 and will grow considerably more in the years ahead. Speaking more specifically on wellness tourism, the sector is among the fastest growing in the industry, with revenues up 12.7 percent and growth 74 percent greater than global tourism in 2013.
“The wellness economy has been growing rapidly in recent years because of converging global currents that defy temporary disruptions: population aging, widespread economic prosperity in emerging economies, the rise of lifestyle diseases associated with sedentary and stressful modern living, and the failure of the conventional healthcare paradigm to help people prevent illness”, according to the report. “As more and more consumers take preventive measures to maintain good mind-body health, prevent diseases, and to age well as they live longer, the demand for wellness industry products and services will only increase.”
Culture of wellness
Defined as “travel associated with the pursuit of one’s personal well-being”, the growth of wellness tourism has been fuelled by a growing number of well-minded consumers whose wish it is to incorporate healthy habits and activities into their holiday. Nowhere else is this more apparent than among high earners, whose jobs are typically some of the most stressful, and for whom a holiday can cause more disruptions than it can benefits. Often the longest-lasting effects of a holiday come by way of jet lag, irregular meals and lack of exercise, and in a world where time off is precious, executives can ill afford to return in worse shape than when they left.
With over 50 countries accommodating for the segment to date, the focus in the years ahead will fall on building and maintaining services and facilities – if only to keep pace with the rate at which the industry is growing.
The growth of wellness tourism, therefore, is inextricably linked to the rise of corporate travel, as well-travelled high flyers seek a retreat away from the all too familiar suit and tie stopover. The Global Business Travel Association said in 2014 that it expected spending on global business travel to climb seven percent year-on-year, owing primarily to the growing stature of the Asian market in particular. And, having ended the previous year in better condition than many predicted, business travel continues to show exciting promise for the future. In a world where business trips are becoming increasingly common, wellness tourism provides an ideal counterpoint to the stresses associated with corporate travel. The growth of wellness tourism in many ways mirrors the focus on corporate responsibility in the business world, so it’s little surprise that both the wellness and business travel categories are thriving in kind.
Emerging trends
However, those travelling to improve their physical and emotional wellbeing are far from excluded to business travellers, and the Global Spa and Wellness Economy Monitor report separates tourists into two distinct categories: primary and secondary wellness travellers. Whereas primary wellness travellers – those who dedicate an entire trip to wellness – are on the up, at 87 percent of all wellness tourism trips, the secondary category still appears to be one to watch. The added fact that wellness travellers tend to be wealthier than the average tourist also means that those in the travel and tourism industry are today fighting for a share of what is quickly becoming a lucrative market.
Looking at the rate at which the industry is expanding and the typical profile of a wellness tourist, it’s fair to say that there has been a discernible shift in consumer attitudes. Millions more holidaymakers are now beginning to consider health and wellbeing when choosing a location, though this culture of responsibility is not necessarily contained to tourism – it can clearly be seen in the corporate world, where such a focus on societal responsibility has resulted in consumers piling pressure on companies to reduce carbon emissions and contribute to the communities in which they operate.
Five locations to visit:
Sub-Saharan Africa
Sub-Saharan Africa is thought by SRI International to be the fastest growing region for wellness tourism, having posted growth in the region of 186 percent through 2007 to 2013 – something due largely to growth in South Africa, Kenya and Mauritius. A reported $3.2bn was spent on wellness tourism activities in 2013, up 57 percent on the previous year, and the region played host to an impressive 4.2 million related trips, representing a yearly increase of 90 percent.
US
The US is the first, and still the largest, destination in the world for wellness tourism, and millions of trips are made every year to the nation’s many attractions, despite the explosion of the Middle East and Africa onto the world stage. A longstanding focus on developing key areas of the wellness tourism industry should be seen as proof for less than mature countries that the market can be a valuable resource in mitigating health problems and driving economic growth.
India
India has long been renowned for its wellness tourism opportunities and was last year the fastest growing destination in the category the world over. Whereas the US market grew by approximately six percent in 2013, India’s equivalent rate ran well into double-digit territory, at 22 percent. With many of the country’s major sites centring on mindfulness, meditation and relaxation, India is a sanctuary for those seeking a refuge away from work-related stress and unhealthy habits.
Germany
Figures cited at the Global Spa and Wellness Summit showed that no other region matched up to Europe in terms of wellness tourism trips made in 2013. In that year, six of the leading 10 destinations are on the European continent, and – with 49.3 million trips made and $42.2bn spent – Germany sat at the head of the pack. Experts claim, however, that the lion’s share of Europe’s future growth will be fuelled by Eastern Europe.
Thailand
Thailand is frequently recognised for its quality and affordability when it comes to wellness tourism, and the country enjoys a well-deserved reputation as a market leader. The focus on wellness is so widespread that spa facilities can be found in near enough every mid-price and upward hotel, and many are renowned for both good value and service. With countless facilities to pick from, the number of wellness tourists choosing Thailand is forecast to increase further still in the years ahead.
Before the dissolution of the Soviet Union, Russia’s one and only travel agency – state-controlled Intourist – kept an ever-watchful eye on the few individuals that came and went; even going so far as to manipulate their actions by keeping them to a state-approved itinerary. Skip forward to the present day, however, and the same tour operator is majority-owned by a more familiar face: Thomas Cook. The company now interacts with more than 200,000 tourists every year. How times have changed.
The privatisation of companies like Intourist marked a defining stage for Russia as it opened up its borders to hesitant foreign tourists. Having welcomed a host of international names in recent years, the country’s reputation has certainly changed for the better – so much so that some sources had previously tipped Moscow as a big-ticket contender to become a leading business travel destination in the near future. But, while experts have long been discussing the merits of Russia and its seemingly limitless potential, it has fallen short of its initial promise.
While experts have long been discussing the merits of Russia and its seemingly limitless potential, it has fallen short of its initial promise
This is a country that has spent much of the last year in the spotlight – albeit for the wrong reasons. What once was seen as an unflappable global superpower is now teetering dangerously on the brink. “The current situation in the global political arena, as well as local currency fluctuations, have resulted in decreasing interest toward Russia, and in particular Moscow, as a destination to visit”, says Marija Milasevic, Research Analyst for Euromonitor. “Potential visitors feel unconfident concerning Russia in terms of payments, service, safety and other important factors for travellers.”
At the turn of 2014, the Russian Government faced widespread criticism for the $50bn it spent on the Sochi Winter Olympic Games – a sum that eclipsed the cost of the 21 previous Winter Olympics combined – and answered to allegations of corruption at near enough every turn. Later would come the furore surrounding flight MH17, along with, from the summer onwards, a seemingly non-stop procession of crises. Turmoil in Ukraine, Western sanctions, record low oil prices and the collapse of the national currency all cooked up a perfect storm, and any signs that the country’s major cities might soon become booming corporate travel destinations have since dissipated.
Great expectations
Only as far back as 1987, Moscow was an isolated city with just 87 licensed restaurants to its name. However, the steps taken since the Soviet split have meant that the city now more closely resembles a Western metropolis than ever before, with dozens of international brand hotels and hundreds of McDonaldses to its name. A quarter of a century on from the fall of the Berlin Wall, Moscow is home to over 12 million people (although untracked migrant activity means the actual figure is likely far higher) and the greatest number of dollar billionaires in the world. This is a city that has undergone a rigorous two-decade-long transformation and, in the process of doing so, led industry experts to believe that it would soon become a leading tourist destination, as well as a melting pot for corporate travel.
One report, jointly compiled by STR Global and HVS in 2009, showed that the number of arrivals into the city increased by 13 percent through 2006 to 2008. And yet, it took until 2013 for Moscow to beat neighbouring St Petersburg as the most popular Russian city, and for the number of annual visitors to finally tip the five million mark. No longer the colourless landscape of old, many of the city’s major Soviet landmarks have since been torn down, and in their place stands a vibrant metropolis bursting with adventure and entrepreneurialism.
2013 was also the year that Europe’s largest city started to show some real promise, particularly as the hotel industry really rushed to cash in on a market rife with opportunities. With a growing middle class, a hospitable business climate and rising corporate profits, there were reasons to believe that Moscow was fast becoming one of the continent’s choice destinations for business – even if it wasn’t necessarily the easiest one
to break into.
The snowboard halfpipe constructed for the Sochi Winter Olympics
Still, real estate and construction permits were – and still are – hard to come by, and the local tourism market is yet to come to terms with the economic downturn. What’s more, the expense associated with land acquisition and hotel construction means that budget and even mid-tier accommodation can prove particularly challenging to get off the ground. As a result, the hotel business in Moscow is dominated by five-star establishments.
While demand for high-end stopovers is adequate enough to keep the industry afloat, a dearth of cheaper alternatives means that those with more modest budgets (mostly leisure tourists) are unlikely to stay. The composition of Moscow’s hotel business means that it has succeeded in attracting multinationals seeking an entryway into the Russian market – though the presence of Intercontinental, Hyatt, Hilton, Marriott and Starwood mustn’t detract from the broader challenges facing the travel and tourism market.
This focus on luxury offerings ahead of budget accommodation means that the city is perceived primarily as a business hub rather than a leisure destination, and as such many hotels struggle to keep occupancy rates up at the weekends. As it stands, corporate travel constitutes approximately three quarters of all occupied rooms in the city, and the segment is by far the largest in the business. However, without the co-existence of more affordable hotels or a willingness to ease restrictions on foreign entry, the megacity’s tourism industry still has limited appeal.
Reasons against
A recent report, written by the Travel and Tourism Intelligence Centre, underlined the importance of the Sochi Games and 2018 FIFA World Cup in supporting the planned construction of a further 254 international brand hotels – or 55,722 rooms – before 2018. However, the report goes on to state that many of these planned developments have been, or will be, put on hold as a consequence of Russia’s changed economic situation.
Travel and Tourism Intelligence Centre experts also estimated at the tail end of 2014 that inbound trips to Russia would fall at a rate of 13.3 percent year-on-year, and outbound trips would take an almost 21 percent dive from 54.1 million in 2013 to only 42.8 million in 2014. Expensive hotel prices, less-than-ideal weather conditions and strict visa requirements are the three most-cited reasons why tourists choose not to visit the city – or at least they were. Nowadays we can add into the mix widespread civil unrest and dire financial straits – and so it is perhaps clear why the country and its capital have lost some of their appeal.
A key area of focus for Russia in past years has been improving its image on the world stage, particularly among Western tourists. As host to 2013’s World University games, 2014’s Winter Olympics and the 2018 FIFA World Cup, the country has had ample chances to prove to a global audience that it is rid of its unfavourable reputation. The setbacks of the past year, however, have affirmed the worst to millions of prospective tourists, and only by addressing known weaknesses will the industry pick up the slack. In failing to clean up its reputation, the country has been hit by a wave of hotel cancellations, with foreigners put off by the country’s run-in with Ukraine and the sanctions that have been imposed as a result.
Travel agency tragedy
If ever proof were needed that Russia’s travel and tourism industry has suffered in 2014, doubters needn’t look any further than the cases of bankruptcy that have gripped some of the country’s leading tour operators. It took until July for the country’s oldest tour operator, Neva, to declare insolvency. In the months that followed, close to 20 operators would shut up shop.
“The Russian tourism market is experiencing a profound systemic crisis triggered by political and economic factors. The year 2014 was much worse for the travel industry even than the crisis year 2009, in which outbound tourism dropped 15-20 percent. [In 2014] the demand for tours dipped 30-50 percent and sales practically came to a halt after the first four or five bankruptcies”, says Irina Tyurina, press secretary of the Russian Union of Travel Industry to Russia Beyond the Headlines.
Citing a “negative political and economic situation” as reasoning for its collapse, tour firm Labirint declared bankruptcy at the beginning of August and, in doing so, left over 25,000 tourists to fare for themselves overseas. In terms of damage, the episode was the worst of 14 bankruptcies through July to September, as currency losses forced Russian firms to pay foreign partners in currencies aside from their own.
The wall of the Kremlin running alongside the Moskva river
With a stream of tour operators having filed for bankruptcy since mid-2014, calls for the government to introduce far-reaching reforms have grown louder – not least in Moscow, where politicians have since unveiled a series of proposals to stabilise the situation. And their answer is not simply to reassure unconvinced tourists that Moscow is for them, as one might expect – but instead, it is to make it so that visitors, in particular those on business, cannot help but avoid the city.
Focus on business
“Despite all the efforts the Russian Government has made during the last three to five years to improve Russia’s image as a destination for both leisure and corporate visitors, the tense political atmosphere has negatively affected Russia as a whole, and Moscow in particular, in terms of visitors flows”, says Milasevic.
Exhausted by Western sanctions and an ever-worsening economic climate, officials announced in the dying weeks of 2014 that the solution to Moscow’s tourism woes would be for it to reinvent itself as a global financial centre. The local government then united at the World Trade Centre to present a development programme, focusing on improvements to infrastructure and barriers to foreign investment in bringing a greater number of tourists to the planet’s northern-most megacity.
Policymakers in Moscow have taken pains to build new office space and lay the foundations needed for financial services to flourish in the near future – though without the talent to accompany it, the city is doomed to slide down Z/Yen Group’s Global Financial Centres Index (GFCI). Undoubtedly Moscow looks the part, though buildings such as the Mercury City Tower – Europe’s tallest building – are purely cosmetic until the country can convince foreign businesses that there are rich rewards to be had in the city.
“Moscow is considered to be the business centre of the country. The majority of business events are organised in Moscow or St Petersburg. The biggest part of companies’ representatives are concentrated in Moscow”, says Milasevic. “The economic slowdown and tense atmosphere in the country has negatively affected corporate travel development in the Russian capital. Moreover, the outflow of international financial investments was noted in Russia in 2014. Moscow will remain the centre of corporate events – however, the city already experienced a decline in visitors. According to Euromonitor International, GDP is expected to decline by four percent in 2015, and this will contribute negatively to corporate travel development in the country.”
Moscow’s business travel industry undoubtedly has the potential to pull away from the nation’s dismal economic climate. However, without first breaking down the barriers to foreign entry and welcoming investors with open arms, it’s difficult to see the city realising its full potential any time soon. What’s important in the meantime is that city officials take heed of the country’s recent failings and implement some much-needed reforms. It’s unlikely that we’ll be talking about Moscow next year as the world’s foremost financial centre, but perhaps it can regain some of its earlier promise.
20 years of Russia
December 1994 – Russian troops invade the self-governing Chechen Republic
December 1995 – The Communist Party wins largest share of votes in the parliamentary elections
March 2000 – Putin elected president; the first of his three presidential terms
December 2006 – New gas deal signed between Russia and Belarus, more than doubling the previous price
September 2008 – The world financial crisis hits and share prices fall dramatically at the Moscow stock exchange
August 2012 – Russia formally joins the World Trade Organisation after 18 years of negotiations
Qatar Airways, the state-owned flag carrier of Qatar, has stepped up its efforts to become a leading global airline by taking a ten percent stake in International Airlines Group (IAG). The British-Spanish multinational holding company is the owner of both the UK’s leading airline British Airways and Spain’s flag carrying Iberia, as well as budget airline Vueling.
EU rules mean that IAG must be at least half owned by European investors
Qatar Airways’ purchase of nearly ten percent of the company underlines its ambitions to play a major role in the global aviation industry. The Doha-based company, founded in 1993, has a fleet of 152 airlines and travels to 146 destinations worldwide. It is already a member of the Oneworld alliance, and became the first Gulf airline to join the group headed up by IAG Chief Willie Walsh.
Walsh has welcomed the news of Qatar Airways investment, telling reporters that he would be looking at ways the two groups could combine their operations in the future. “We will talk to them about what opportunities exist to work more closely together and further IAG’s ambitions as the leading global airline group.”
The deal, worth a reported £1.1bn, will see IAG gain access to Qatar Airways’ strong network throughout Asia and the Middle East. At the same time, the Gulf airline will get greater exposure to Iberia’s routes across South America. While it has hinted it may look at increasing its stake in the future, EU rules mean that IAG must be at least half owned by European investors.
In a statement announcing the deal, Qatar Airways CEO Akbar Al Baker said the stake in IAG “represents an excellent opportunity to further develop our westwards strategy.”
The airline industry has been undergoing a period of consolidation lately, with IAG looking to acquire budget Irish airline Aer Lingus for £1.3 bn. The group was formed after the merger of British Airways and Iberia in 2011, creating a 430 strong fleet.
Here are some top considerations when you choose where to relocate to:
Transport links
Do you need to be close to the airport or train station? It’s important to think about transport links for the times you want to return to the UK, or for when friends and family visit. It’s a good idea to make sure that this does not add an extra day’s travelling at both ends of your or their journey.
Climate considerations
What kind of climate are you looking for? Don’t presume when looking for a place in the sun that every part of a country that you perceive is ‘hot’ will be sunny all the time – and equally, some parts may well be sweltering and difficult to get used to. There is also the issue of extreme weather to take into consideration. Certain regions in some countries, like America, can experience regular hurricanes and tornadoes, or rainy seasons in long-haul destinations.
Realistic budgeting
What neighbourhoods can you afford? Your budget is the most important aspect of your pre-move preparation, and knowing how much you can spend on your property early on saves you from setting your heart on one you cannot realistically buy. It’s also a good idea to know which areas you can afford to live in before you start visiting and weighing up the merits of each location.
Select your surroundings
Do you want to be close to the sea, in the mountains, or in the midst of the hustle and bustle of a large town or city? Even the smallest of countries can have a vast number of terrains. Spend some time thinking about what is important to you in your new location – do you want to be within easy reach of the beach, or are mountain or hillside treks more your thing? Maybe you are desperate to be right in the middle of a busy city centre, or perhaps you dream of a small village and rural idyll.
Amenities
The proximity and accessibility of medical, educational, sport and recreational facilities can all be important factors in determining your ideal location. It’s a good idea to work out the distance between those amenities most important to you and the different locations you are considering.
Local or expat life
Do you want to be in a largely expat neighbourhood, or live a more traditional local lifestyle? Much of this will depend on whether you are moving overseas for work or for play, so think carefully about whether it is somewhere more suited to holidays, rather than year-round living. Living among other expats, you will find many in a similar situation, while living along with the local population may help you to assimilate quicker into the local lifestyle.
Some parting tips:
If you can, spend some time travelling around certain areas
Obviously research into your new prospective areas is key, but it’s important to stay focused. It’s a good idea to narrow down your search to just two or three areas – and then take some time to explore them. It’s also advisable to visit them all in ‘off’ season; popular summer resorts are not going to be as busy in the winter, and many may even close down completely. Make sure you check out these locations during the colder months – you don’t want to end up in a ghost town, living an inconvenient distance away from your essential comforts.
Location, location, location!
It’s worth bearing in mind that the more desirable the location that you choose, the easier you are likely to find selling your property when you choose to do so.
The latest UNWTO World Tourism Barometer shows that international tourist arrivals tipped the 1.1 billion mark in 2014, representing a 4.7 percent increase on the year previous. The figure is 51 million greater than in 2013, and marks a fifth successive year of above average growth. “Tourism has proven to be a surprisingly strong and resilient economic activity and a fundamental contributor to the economic recovery,” said Taleb Rifai, UNWTO Secretary-General at the Spain Global Tourism Forum.
Positive 2015
Taleb Rifai, UNWTO Secretary-General
The results in for the UNWTO’s Confidence Index suggest that the tourism industry is on course for another stellar year. Expectations are not quite as rosy as this time last year, but many expect arrivals to climb by another three to four percent in 2015, with the Americas being the strongest-performing region. “We expect demand to continue growing in 2015 as the global economic situation improves even though there are still plenty of challenges ahead,” writes Rifai in the report.
Demand from traditional sources picks up
St. Petersburg, Russia. Tourist spending in the country has suffered as Western sanctions and currency woes take their toll
Although emerging markets have been driving growth in tourism for a few years now, the slowdown in 2014 meant that it was left to traditional markets to pick up the slack. Tourism expenditure in France was up 11 percent on 2014, while spending in the US and Italy grew by six percent. Russia, meanwhile, has suffered at the hands of Western sanctions and currency woes recently, and tourist spending has fallen six percent as a result.
Europe stays strong
The Bay of Villefranche Cote d’Azur, France. The Mediterranean exhibited high gains in tourism
The number of tourists choosing to visit Europe increased four percent last year, and the continent has consolidated its position as the most visited region in the world. Over half – or 588 million – of all international tourists made their way to Europe, 22 million more than in 2013. Northern, Southern and Mediterranean Europe exhibited the highest gains at seven percent, whereas visitor numbers in Central and Eastern Europe stagnated after three years of impressive gains.
Tourists unconcerned by unrest
The Ebola crisis has done little to deter tourists from visiting Africa and the Middle East
Although the data for Africa and the Middle East is limited, early signs show that the tourism market has continued to pick up steam, despite the Ebola outbreak in West Africa and civil unrest in certain parts of the Middle East. Two million more tourists head out to the Middle East, representing a four percent increase and bringing the total to 50 million, whereas an additional one million took to Africa, a two percent improvement on 2013.
Towards the end of last year, OverseasGuidesCompany.com surveyed our readers, expats and would-be expats looking to make a move overseas, to find out the key drivers of Brits wanting to start a new life abroad.
As you would expect, quality of life was by far the most frequently cited reason for making that move – cited by 38 percent of respondents, and this was quickly followed by the 25 percent looking for a better climate. With these results in mind, we also spoke to our expat writers in some of the most popular destinations with Brits (Australia, Spain, USA, Canada and New Zealand) to find out if it these reasons that keep them abroad long term.
Australia – the sunshine!
AustraliaBuyingGuide.com’s Anna Goater, originally from Farnborough, was backpacking around the world when she decided to stay in Sydney for the backpacker rite of passage that is a ‘year in Australia’… and she never left!
“There are so many things that I love about life in Sydney. The amazing beaches, bars, parks and camping spots. The fact that it’s sunny around 300 days each year, which is fantastic for me as I love being outside as much as I can. I have also managed to find a job that I love, as the office manager of a fantastic yoga and Pilates studio. Life in Sydney is relaxed, safe and clean, and it’s an easy place to live and work.”
Spain – the way of life
Sally Veall, writer at SpainBuyingGuide.com, had been living in France for 12 years before she moved to North East Spain seven years ago. Her husband’s work often took him across the border, and when she accompanied him she found that she quickly fell in love with the way of life; the late opening times of bars and restaurants, and of course the weather! Once they had made the decision to move, they spent six weeks renting an apartment in the winter to make sure they were happy even in the off season. From there they bought an apartment close to the sea – and haven’t looked back!
“In the seven years I have lived here, I have learnt Spanish and gained a good understanding of Catalan. I have made new friends from all over the world. I have tried new things, sometimes quite daunting things! I am always learning more about this fascinating region. I live outdoors more than indoors. Nowadays, when I return from family visits in England, I truly feel as though I am coming ‘home’.”
The United States of America – affordability!
USABuyingGuide.com’s Carole Wirszyla tells us how she always knew she would eventually live across the pond.
From early childhood, Carole was fascinated by the “place on the other side of the Atlantic that was home to sun, sand and Disney World!”, and this was compounded by her first visit to America at the age of eleven.
“Years later, I fell in love with a New Yorker at university and while this didn’t work out the first time round, eleven or so years ago we reunited and I moved to South Carolina. I was studying journalism at a nearby college when we decided to get married – and we stayed there after my course because of the low cost of living, relatively cheap flights and job security for my husband. We eventually ended up in North Carolina, thanks to its more forgiving climate, attractive scenery and more cosmopolitan and culturally diverse city, as well as the affordable housing and good education.”
Canada – making the most of the scenic seasons
CanadaBuyingGuide.com’s Stewart Buchanan’s decision to move to Canada was helped along by his Canadian wife, who hailed from just outside Vancouver. They took many trips over in the years before the move – experiencing all the different seasons, the amazing scenery and the opportunity to spend time outdoors.
“There is great skiing here, and we love taking our dog on long walks in the woods or on mountain trails. In the summer, we can spend time on the local beaches and lakes. I also love living in Canada because of the people, who have made it really easy for me to feel at home. Of course the fact that it is an English-speaking country made the transition much easier.”
New Zealand – the great outdoors
Pattie Pegler, writer at NewZealandBuyingGuide.com, was itching for a life away from the London rat race, particularly the long commutes and expensive housing. Her husband had grown up in New Zealand and they decided to move to Christchurch thanks to its open spaces, lack of crowds, fantastic outdoor sports and reasonable house prices.
“Life in New Zealand is good. We can afford a nice house and 10 acres of land within commuting distance of Christchurch for my husband’s job. We have space and animals, and a lifestyle that we wouldn’t be able to afford in the UK in terms of property and land.
“Since we moved out here, we also had our little boy, which has really helped me to feel rooted here. Of course, there are the downsides – we are a long way from the UK, which is something that we recommend Brits carefully consider before they go. The cost of living here can also be high, but all in all though, we have settled in and adjusted well to kiwi life.”
Words by Angelos Koutsoudes, Head of Overseas Guides Company.com, publishers of buying guides in over 15 countries, 0207 898 0549.
Thanks to the technological revolution of smart phones and data roaming, we are finding it increasingly difficult to ‘switch off’ from work, even while on holiday. Mounting pressure from demanding careers has resulted in many working longer hours, on weekends and during annual leave. With better connectivity and emails just a button away, we are compelled to keep on top of it all, even when thousands of miles away. According to Expedia’s Vacation Deprivation 2014 report, 25 percent of holidaymakers surveyed around the world said that they check their work emails at least once a day while vacationing.
There are a number of reasons behind this compulsion to work while on holiday. “Organisations expect more and more from employees. During challenging economic times, staff who have left companies aren’t always replaced, and those who are left are increasingly expected to pick up the slack,” Caroline Smith at Mind Tools explains to Business Destinations. Sometimes it’s out of the fear of returning to a backlog of emails. Others feel obligated to prove their commitment, or follow suit of colleagues who set the unremitting bar.
Not fully recuperating on a periodic basis can promote stress and waning productivity
Not fully recuperating on a periodic basis can promote stress and waning productivity, which consequently is bad for business. “Not taking a break can ultimately lead to burnout, which is no good for anyone. It can mean having little interest in your work, taking time off sick, being snappy with other team members or clients, and wanting to leave your job,” says Smith. Working while we are meant to be unwinding can also induce resentment towards the workplace, no matter how good intentions may be.
As individuals in high-stress jobs struggle with that nagging need to check emails when on holiday, some find that the best way to counteract this impulsion is to go where the internet cannot find you. “We find a high proportion of our customers are business owners or certainly hard workers within their profession,” says Amy Neilson, Marketing Manager at Sailing Holidays. “The Greek Islands really are an unbeatable way to get away from it all. We find people’s priorities change considerably for the better”. Rated as the UK’s fastest growing holiday trade by IBIS World, cruises too are becoming increasingly popular. With rare bouts of reception to keep thoughts of office calls and emails at bay, a trip out to sea seems like a sure way to get away from it all.
More companies are beginning to realise the importance of ‘switching off’ in order to improve employee productivity. Germany seems to be leading the trend, with the Labour Ministry urging employers to establish rules over the use of work mobile phones. To the appreciation of its workforce, car manufacturer Daimler has introduced an optional auto-delete policy for emails while staff is on holiday. While workers at Volkswagen have emails blocked from 30 minutes after work-hours end until 30 minutes before the new shift begins, thus ensuring respite in the evenings.
As important as is it is to stay abreast of relevant work affairs and of showcasing dedication, working while on holiday is not beneficial in the medium to long term. Returning after a restful vacation brings revitalised energy levels and fresh focus to the workplace. It is increasingly recognised that maintaining a good work-life balance promotes wellbeing. This in turn enhances enduring performance levels, efficiency and creativity, thereby maximising your potential and that of your greatest asset. Therefore; it is advisable to switch off every now and again, so that you can fully ‘switch off’.
When recession hits, the first businesses to bear the brunt are those in the market of luxury commodities. As people grapple with rising interest rates and shrinking wages, the demand for non-essential goods rapidly declines. The same can almost be said for the super-rich, who are among a small pool of individuals that can afford to purchase and run super yachts. As the wealthy contend with threats to their businesses, maintaining a high standard of living may come at the cost of refraining from such extravagant purchases. For example, Europe, one of the leading markets for super yachts, suffered a collapse in orders in 2009 following the financial crisis. According to the FT, the number of new builds delivered worldwide dropped by approximately 56 percent between 2008 and 2012.
With recent economic stability in the US and a new wealthy elite rising from emerging markets, the super yacht industry is making a come-back. The past year or so has shown increased demand from Russia and China, two countries that have had a fast rise in the number of their multi-millionaires. Greater demand also comes from the US as the home of the worlds richest shows signs of economic growth. Marcus Munt, Chairman of ABYA, the professional yacht brokers association, tells Business Destinations, “people have greater confidence in the economy generally, so they are happy to spend money, be it on houses, cars, yachts, power boats.”
With recent economic stability in the US and a new wealthy elite rising from emerging markets, the super yacht industry is making a come-back
Following a long period of uncertainty, big brands such as Sunseeker, Princess and Ferretti are benefiting from fiscal boosts following buy-outs by large corporations and conglomerates. With increased investment, market leaders can continue to unveil exciting new models, no easy feat for a product that can cost millions to manufacture, and take years to do so.
The industry is not without its challenges. Buyers from the Eurozone have not yet fully recovered from the recession; uncertainty in the future of the union prevails with fresh concerns regarding quantitative easing and a Greek exit. The recent economic sanctions currently facing Russia have also affected the super yacht market, preventing willing customers from purchasing luxury goods imports from the EU. The issues facing the Chinese market on the other hand are logistical; there are simply inadequate mooring facilities in place to meet the swift rise in demand for the lavish and sizeable commodity.
The longevity of the economic sanctions against Russia and the outcome of the Eurozone crisis are tentative at this stage. Conversely, the infrastructure challenges facing the Chinese market are relatively short term and can be soon overcome with sufficient funding. This was the case with Kenya, where the growing demand for berthing yachts has resulted in investment pouring into the development of Englishpoint, a huge marina complex comprising luxury homes and facilities. Such could be the case for China also. Where there exists opportunity, investors soon follow.
Despite various bumps in the road or on the sea, there is still a great deal of opportunity for the super yacht industry, particularly from Asian markets. “Currently only a very small proportion of the Chinese market has opened up,” says Munt. Additionally, the drop in oil prices will also positively affect the industry, with less expenditure required for production, as well as fewer running costs for customers. Regardless of bouts of recession, the historic pattern of ‘the rich getting richer’ will undoubtedly continue, meaning that markets and goods aimed at the wealthy will persist. There may not be a boom ahead in the short term future of the super yacht industry, yet neither will there be a bust. The pre-recession days could indeed never be seen again, but the stability of this niche market is very much on the horizon.
