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Crunch yet to hit Mid-East
Wednesday, October 22, 2008 The global credit crunch has not yet hit the Middle East region – but will have an effect on bookings according to a panel of airlines, hoteliers and corporates at the Business Travel Show Dubai. Growth rates are likely to slow in the region as Western companies cut back on or downgrade travel. However, construction, oil and gas companies are continuing to fuel demand even as the banking sector begins to slow. Jo Lloyd, European corporate sales manager at Qatar Airways, said: “We have not seen any slowdown in premium bookings on our Middle East routes. We would expect to see a dip in terms of bookings from banks, but business is still very strong in oil and gas and construction and we would expect it to remain that way.” Cathy Mead, Jumeirah’s director of corporate sales, said: “We are not experiencing a slowdown in our business yet. However, the key word here is ‘yet’, and I think that it’s inevitable the way that global markets are so closely connected that we will at some point.” Hilton Hotels’ regional director of sales and marketing, Guy Epsom, described the region as “insulated, but not isolated” from world economic turmoil. “I wouldn’t be surprised if there was a slowdown coming down the line,” said Epsom. “But this is the time to be prepared because we have a big opportunity to act before the curve.” Hennie Strauss, CitiGroup business services head Middle East, said: “Cost saving is a key focus. Cost saving is always a concern for corporates, even if the credit crunch wasn’t there.” Sabre Travel Network’s Middle East chief executive, Daniel Naoumovitch, said: “This part of the world is still enjoying growth that is the envy of the world. “I’m not saying that the Middle East is immune to the credit crunch, it’s just that right now there is a lot of money being spent on developments and new projects and the people involved in that need to get out here.”
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