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Focus on US Default Crisis

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Maldives Promotion House – Tourism Professionals all over the world have begun to discuss the depth of the impact from the fallout of the US “Default” crisis and the potential credit rating decline. Experts in Maldives have also expressed concerns about the ongoing and worldwide crisis that will touch people throughout the tourism and travel industry.

While it is critical that experts do not get tangled up in rumours or widely spreading headlines, the crisis has less to do with raising an artificial debt ceiling and more to do with simple debt. According to Dr. Peter E. Tarlow, the President of Tourism and More, Special to ETN, many Western nations, including the US, simply spend more money than they take in.

“Though most Western nations have practiced some form of this economic policy for decades. The unfortunate results of overspending have created highly unstable societies in countries such as Greece, Italy, Spain, Portugal, and Ireland. In all of these nations, deficit spending has been instituted as a means of paying for what is often called “The Social Net,” and there is the assumption that it is the government’s job to “Smooth” out a society’s business and economic bumps,” Dr. Tarlow said.

Dr. Tarlow further explains his view. While in the US, this social net has always existed, the government participation has been much less, while traditionally, Americans have tended to rely on volunteerism and community-service providers, such as religious institutions, rather than government bureaucracies. Thus the social net has existed but at far less governmental cost. Some economists believe that due to the less reliance on government to provide the social net, the US, at least until now, has been able to avoid the economic tragedies that are now occurring across much of Southern Europe.

Despite whatever happens in Washington, there are a number of other factors that will impact tourism. Among these are:

1. Even if the most extreme budget bill is passed, the US is still spending more than USD1,000,000,000,000 (one trillion) dollars more than it receives.

2. US economic national product is down to less than 1.4 percent. That means that economic growth is at about zero.

3. In the US, unemployment is now increasing and housing prices are continuing to be down.

4. China is now facing a major economic slowdown.

5. Germany is now feeling the first signs of a looming recession and may no longer be able to bail out Europe’s so-called PIIGS countries (Portugal, Italy, Ireland, Greece and Spain). While the euro will not disappear tomorrow, its longevity may now be in doubt.

Here are some of the ways that tourism and travel professionals can expect the current economic crisis to impact their industry and some ideas for economic survival in highly turbulent times.

In this global economy, be prepared for continual currency readjustments. For years, the US dollar acted as the one stable currency. This fact is no longer true and unstable currencies in an interconnected world means that tourism officials must be prepared for price fluctuations. The impact of such unstable pricing means not only will many tourism providers be unable to set market prices but also that business plans will need to be updated on a continual basis.

Tourism, especially leisure tourism, is a discretionary expense and, therefore, vulnerable to mood swings. If the public is fearful of not having enough money to pay for basic necessities, then for many people, there is a tendency to pull back. This pulling back does not mean that people will cease to travel. It does mean that they may seek less expensive options, and for shorter time periods. Those tourism businesses that are in or close to major population centres have a great many new opportunities, while those destinations that are dependent on long-haul travel and more lengthy stays may have some challenges to overcome.

Expect this period of economic turbulence to be here for quite some time. Despite what politicians may say, the bottom line is that no one has a plan that is politically acceptable. In today’s world, there are more voters than workers and that means that politicians are afraid to make decisions that may cost them an election.

Foreign, non-business travel should decline as the cost of travel combined with lower salaries will impact the way citizens from major industrialized nations spend their money. This decline in foreign travel will be especially hurtful to those parts of the world, such as the Caribbean that have long depended on foreign visitors and have a reputation for being expensive, offering poor customer service and tending toward being unsafe.

Here are some ideas to prepare for what may be a difficult economic year.

Develop creative bundling packages. For example, create packages that allow business travel to be combined with family vacations. Encourage hotels to include breakfasts, Internet services, and other amenities within the cost of a room.

Keep prices as low as possible. No one likes to cut their profit margin, but some profit is better than no profit at all. Let people know that you care and that your prices reflect your concern for the public’s well-being.

Provide the best customer service possible. When money is tight, our tolerance for bad experiences is even less. These are the times not to make customer service mistakes, and if a mistake is made, make sure to apologize and correct the mistake. In economically-challenging times, no one wants to hear excuses for customer service errors.

In the US, the weak dollar means that many foreigners will find the US a highly-affordable vacation option. US tourism professionals need to internationalize their product and their outlook so as to attract both European and Asian visitors.

Many Latin American nations, due to the low cost of labour and short food supply distances, can also become new tourism destinations. However, issues of poor customer service, violence, and crime waves against tourists often plague this part of the world.

Seek markets that are closer to home. Smaller communities and communities that offer short-term tourism (2 or 3 days) can see increases in their potential market if they can solve problems such as: what to do on rainy days, lack of night time activities, and how to entertain children during inclement weather such as snow storms.

Unfortunately, the travel and tourism industry cannot change the world’s economic policies, but travel and tourism can teach political leaders around the world several important lessons. Among these are: during economically-challenging times, talk less and do more.

Dr. Tarlow has explained that this is not the time simply to market what you have, but rather it is the time to launch new products and become innovative. Creativity and out-of-the box thinking are essential skills for such a challenging economy and the travel and tourism industry are not going to go away.

According to Maleeh Jamal, the Secretary General of Maldives Association for Travel Agents and Tour Operators (MATATO), the Default Crisis will have a worldwide impact. However he also suggests that the direct impact to Maldives would be minor.

“The US market of tourists that visit Maldives is relatively small. Because of that, Maldives will experience only a minor direct effect from the crisis. But Europe will be highly affected by this and thus will create a major effect on tourism in Maldives, because the majority of the tourists to Maldives come from Europe,” Maleeh said.

“China also dominates the tourism market in Maldives and is a major credit partner to the US. So to some extend China’s economy will suffer, leading to a negative effect on the Maldivian Tourism. Moreover, the current statistics show that the world economy may not improve within the next two years. So if Maldives is to sustain its tourism, we have to device a strategic plan to focus on the upper class or the rich and wealthy market as well,” he added.

No matter what the credit rating may be, no matter what the cost of money, people are still going to travel. However, for tourism and travel to prosper rather than merely survive, the industry is going to have to be much more creative, innovative, and service oriented. Tourism centres that can choose to not to provide good service, offer poor security, and lack of new product innovation will not survive. Those, however who choose to offer excellent service and continually reinvent their product in a safe and secure environment are bound to not only survive, but in the end, will prosper.

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Constance Hotels & Resorts Honors Manjoola Dowlutrao’s 20-Year Career Journey

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Constance Hotels & Resorts celebrates the dedication and excellence of Manjoola Dowlutrao, recognizing her remarkable 20-year journey within the group.

Dowlutrao’s story began in 2001 as part of the inaugural class of the Constance Academy’s Management Training Program. This experience launched an exceptional career within the prestigious hotel group.

Starting at Constance Lemuria Seychelles as a Reservations Supervisor, Dowlutrao has consistently demonstrated exceptional growth and leadership. Her path led her to Constance Prince Maurice in Mauritius, where she spent two decades honing her skills. She rose from Sales/Guest Relations Manager to Executive Assistant Manager, embodying a true commitment to providing exceptional hospitality experiences.

Dowlutrao’s recent appointment as Executive Assistant Manager in the Maldives signifies both her valuable contributions and the confidence Constance Hotels & Resorts holds in her abilities. Her career trajectory exemplifies the supportive and empowering environment the group fosters, encouraging individuals to excel and assume leadership roles within the luxury hospitality industry.

Manjoola’s remarkable journey across Constance’s esteemed properties in Seychelles, Mauritius, and now the Maldives, stands as a testament to her vast knowledge and her dedication to enhancing the guest experience over the years.

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Anantara Kihavah Maldives Villas Welcomes Award-Winning Joachim Textor as New Executive Chef

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Anantara Kihavah Maldives Villas has announced the appointment of Joachim Textor as the luxury resort’s new executive chef. With over 40 years of experience in delivering premium culinary services around the world, Chef Joachim is now ready to bring his exciting new variety of innovative dining experiences to the resort’s discerning guests.

A native of Germany, Chef Joachim Textor began his illustrious career as a cook at various world-class hotels in Switzerland. After honing his skills at the Hilton in Basel, the Park Hotel in Vitznau and the Hyatt Hotel in Montreux, he decided to expand his culinary repertoire by exploring the tastes and cuisines of the world. Across 42 years of travelling, his amazing culinary journey has taken him to 93 countries and countless five-star kitchens across the planet.

Chef Joachim’s incredible journey of gastronomic discovery has led him to gain invaluable experience as an executive chef in some of the world’s most prestigious hotel chains, including The Peninsula Hotels, InterContinental, Hilton, Mandarin Oriental, Shangri-La, and Hyatt. He has received critically acclaimed awards and was also the Opening Executive Chef of Anantara Dubai Palm where he spearheaded the opening of the resort’s signature restaurants and dining experiences back in 2013.

Regarded as one of the most pioneering chefs in the industry, Chef Joachim has also opened multiple award-winning hotels and dozens of restaurants in both the Middle East and the Far East, while he has also cooked for a number of famous politicians, Hollywood celebrities, and royalty all over the world. His past assignments include the G12 Asian Summit Conference in Busan, where he cooked for such prestigious world leaders as George W. Bush, Angela Merkel and Li Peng.

A positive and cheerful personality with an energetic passion for innovation in his creations, Chef Joachim is now set for the next adventure in his culinary journey. Still as hungry to learn and explore as ever, Chef Joachim will bring phenomenal dining experiences for gastronomes at Anantara Kihavah with a number of new innovations already planned. Sharing the knowledge he has accumulated through his travels across six continents, Chef Joachim will also act as a mentor for budding young cooks, introducing his repertoire of world cuisines to the next generation of aspiring gastronomic innovators. In Chef Joachim’s own words, “The best is yet to come. Life is a journey and not a destination; travel it safe and well.”

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JOALI Appoints Özgür Cengiz as Global Wellness Development Director

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JOALI, the luxury hospitality and lifestyle brand, has announced the appointment of Özgür Cengiz as its Tourism Group Global Wellness Development Director, effective February 15th, 2024.

Cengiz brings over 20 years of experience in the hospitality and wellness industry. His career began with the opening team of Turkey’s first wellness resort, Richmond Nua Wellness, followed by leadership roles at Jumeirah in Azerbaijan and One&Only Reethi Rah in the Maldives.

In 2016, Cengiz joined JOALI as the Resort Manager for JOALI Maldives, the brand’s first art-immersive resort. He then played a pivotal role in establishing JOALI BEING, the Maldives’ first wellbeing island, as its General Manager.

Under Cengiz’s leadership, JOALI BEING garnered global recognition as a leading wellness destination. He is credited with creating the unique concept, curating a team of specialists, and introducing a diverse range of treatments – solidifying JOALI’s position as a wellness powerhouse.

Cengiz’s dedication extends beyond JOALI. He served as the Maldivian ambassador for Global Wellness Day for seven years, is a respected speaker in international wellness forums, and judges the Global Spa & Wellness Awards. His innovative approach and solution-oriented mindset have earned him widespread respect within the industry.

Hakan Öztürk, Tourism Group Managing Director of Gürok Group (JOALI’s parent company), commented on the appointment, stating that Cengiz’s “extensive knowledge and passion will truly redefine the wellness offerings for the brand from a broader perspective” as JOALI expands its portfolio.

In his new role, Cengiz will oversee the wellness strategy for the entire Gürok Tourism Group, encompassing innovative activations, expansion plans, and strategic development for both JOALI BEING and JOALI BEING Cure.

Cengiz’s appointment strengthens JOALI’s commitment to providing exceptional wellness experiences and signifies their continued dedication to pushing boundaries within the industry.

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