The immediate impact: travellers waiting in long lines at some of the United States’ busiest airports, which in turn affected the facilities’ overall operations. The Donald Trump administration had to deploy federal agents from the US Immigration and Customs Enforcement (ICE) for airport security-related duties, despite the individuals lacking relevant training for the task.

Call-out rates (the ratio that deals with the absence of TSA staff from their airport duties), by the middle of March, reportedly increased to 10%, as the employees just couldn’t deal with the fact that they were working without salaries for the second time in six months.

The first crisis hit them during October-November 2025, due to the political flashpoint between Democrats and Republicans in the US Congress over budget negotiations.

The situation reminded Americans of a similar crisis in 2018-19, when over 50,000 TSA officers had to work without pay, leading to high absenteeism (near 10%), long airport security lines, and over 300 employee resignations. However, this time the problem has been much larger in nature.

Talking about TSA call-outs, major airports like New York, Atlanta, and Houston have seen staff absence of nearly 30% or higher. The visuals of travellers standing in long queues across the airports went viral, with many of them taking the social media route to allege that even after reaching airports well in advance to catch their flights, they ended up missing their journeys.

Trump Intervenes To Ensure Paycheques For TSA Employees

Just how bad was the situation? In the last week of March, Transportation Secretary Sean Duffy said that some 74 small American airports faced a shutdown scenario due to factors like staff shortages and TSA mass call-outs. The regional network of the US aviation sector faced a catastrophic situation. Also came out another shocking stat: assaults on these unpaid TSA workers (by frustrated flyers) increased by around 500%, since the start of the partial government shutdown on February 14.

The Department of Homeland Security (DHS), tasked with overseeing the TSA, has been unfunded since February 2026, after Congress failed to reach a budget agreement. Democrats have reportedly refused to agree on a funding deal without reforms to the US Immigration and Customs Enforcement (ICE) agency, triggering the partial shutdown.

Under the established protocols, TSA agents, considered essential workers, must work without immediate pay during a federal shutdown, as their salaries depend on congressional appropriations, which are, in turn, tied to a funding agreement in the DHS budget.

On March 27, Donald Trump issued a presidential memorandum, instructing Homeland Security Secretary Markwayne Mullin and Office of Management and Budget Director Russell Vought to pay TSA agents using existing funds that have a reasonable and logical nexus to TSA operations. Since then, things have improved, as TSA staff have started receiving their salaries.

Latest details (as of April 6) show that Hartsfield-Jackson Atlanta International Airport and New York’s LaGuardia Airport have security wait times of 10 minutes or less. John F. Kennedy International Airport was reporting wait times of roughly 30 minutes at four of its terminals. However, the TSA staff call-out ratio is still hovering above 20% in some places.

White House Proposal

Now comes the big news. The Trump administration is proposing to slash over 9,400 TSA workers and a little over $1.5 billion from the agency. It is already in the federal budget document. In April, Congress will likely conduct hearings on the White House budget request, in an attempt to ensure that the new budget deal gets concluded before ⁠September 30.

White House’s solution is radical: privatise airport security screenings by 2027. Some airports use a TSA partner screening programme, which helps manage lines at smaller airports while ensuring employees are paid on time. The proposal will also reduce the organisation’s nearly $8 billion budget by roughly 20% amid the agency losing over 1,600 workers during the federal government ⁠funding disruptions in 2025 and 2026.

Stalemate In Congress

However, the political duel continues. The stalemate in Congress will continue, as Democrats want a government restraint on immigration agencies. The high-profile deaths of American citizens like Renee Good and Alex Pretti during a Minnesota crackdown by federal agents raised questions about alleged high-handedness by the Trump administration during anti-immigration drives.

In November 2025, both Republicans and Democrats agreed to negotiate DHS funding ’at a later date’ to ward off the government shutdown. However, things haven’t progressed at all since then, and with TSA funding lapsing on February 14, all hell broke loose. Several bills put forward by Democrats to fund TSA while a larger deal on DHS is worked out have failed to pass. However, neither Republicans nor Democrats are ready to take the blame.

Post Trump’s executive order, TSA workers are finally getting paid. The hours-long passenger queues at security lines are easing up as well. However, there is no guarantee that something similar won’t be repeated.

According to Chris Edwards, Kilts Family Chair in Fiscal Studies, Cato Institute and Editor of DownsizingGovernment.org, security screening at American airports needs to be privatised. Screening operations need to be contracted out to private security agencies while shrinking the government’s role to regulatory oversight and intelligence.

The Arguments For Privatisation

While Edwards’ solution aligns with White House’s proposals and sounds radical, he cited the Canadian example, where the federal aviation authority provides contracts to security firms for five years, apart from periodically reviewing their performances. The system ensures that 95% of travellers get screened within 15 minutes. A similar method has been implemented in Europe as well, where about four-fifths of airports use private screening.

“In the United States, the TSA took over screening at 430 commercial airports over the past two-and-a-half decades since 9/11. It hasn’t been a glorious run. TSA has misallocated resources, delivered mediocre (at best) security evaluations, and wasted vast amounts of traveller time in queues. And it has long scored near the bottom of all federal agencies in annual rankings of best places to work. Thankfully, the 2001 bill creating the TSA allowed for some private airport screening in the Screening Partnership Programme (SPP). As part of SPP, San Francisco International and 19 smaller airports have been using private screening firms for years, and with good results,” Edwards said.

While claiming that an ’undercover test’ conducted in 2015 found a 95% failure rate for TSA, in terms of identifying banned items, Edwards said that another similar experiment found a failure rate of 80%. He also said that TSA has a conflict of interest, as it both performs screening and sets the standards, in terms of conducting screening and judging its own performance.

“By contrast, in the Canadian and European systems, the government authority sets the standards and can objectively judge the performance of private screeners at the various airports. Also, as a near monopoly, TSA has little incentive to improve efficiency or to innovate. But under a privatised system, companies would compete on their records to win contracts at airports, and they could draw on their broad international experience to continuously improve their operations,” Edwards commented.

On the other hand, the US Travel Association wants Congress to provide three years of funding for the TSA to help avoid an impact on paycheques. For the association, the onus is on both Republicans and Democrats to put their differences aside and fix the overall mess through reconciliation.

So, we have two schools of thought: one advocating privatisation, axing workers in the process, while the other wants further investment in the human resources. Which side will win? The answer can be expected after September 30, when the new budget deal is concluded.

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The Qiddiya bullet train is a part of the Vision 2030 strategy to improve connectivity and enhance mobility between important locations so that population growth and urbanisation don’t cause traffic bottlenecks.

The Royal Commission for Riyadh City announced an extension of the Red Line of the Riyadh Metro to Diriyah. It will be a 7.1km tunnel with 1.3km of elevated track, starting from King Saud University and Diriyah. They also planned Line 7, which would connect to the proposed Red Line extension.

There is going to be a huge reduction in daily traffic, with 150,000 cars removed due to the availability of this hyperspeed commuting possibility. Tourists from Bujairi Terrace and Wadi Safar will be able to get around the city much faster.

Vice Chairman Bandar Al-Saudun told Asharq Al-Awsat that the Diriyah development is one of the largest projects under Vision 2030. He also noted additional landmark initiatives in Wadi Safar, such as the Opera House project and the King Salman Grand Mosque.

Real estate is going to boom as the red line is extended along King Abdullah Road to Diriyah. The Vice Chairman especially noted the potential for a boom in the price of land from the King Salman International Airport through KAFD.

There are around 30 projects within Qiddiya, and these are also going to gradually vitalise the real estate sector. Major developments linked by the project include Expo 2030 Riyadh, The Avenues, and New Murabba. Of course, there is also the airport, which is meant to be one of the largest in the world by 2030.

Khaled Almobid, a real estate analyst, noted that the bullet train will improve land value by reshaping market structure over the medium and long term.

Almobid identifies two primary consequences, a redistribution of demand within Riyadh and an authentic market expansion driven by what he identifies as manufactured demand.

The project is expected to attract 70 million visitors and create 325,000 new jobs. Additionally, the areas around the stations are expected to attract a significant population.

It is important to note that, historically, the areas within a one to three-kilometre radius of transfer stations see capital appreciation and significant investment demand. This is particularly true for undeveloped “white land” that is metamorphosed into high-density transit projects.

Land prices also rose almost 40% since 2023, indicating a lot of market anticipation, Khaled said. He also expects sustainable growth as the travel time becomes 30 minutes between the airport and Qiddiya.

Once the local population increases, the real estate value, the next phase will see tourism real estate soaring. This is largely due to the new policy where Saudi Arabia is set to raise homeownership to 70% and its decision to attract 150 million visitors annually by 2030.

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Al-Saleh revealed that the ministry had carried out comprehensive maintenance contracts comprising 9.5 million square metres of asphalt on internal roads within all governorates and 5.5 million square metres on highways, under 12 internal road maintenance contracts and six highway contracts.

The official further explained that the ministry is acting on a “clear and well-thought-out plan” that is being carried out in close coordination with the Ministry of Interior to ensure traffic flow during implementation of these projects, and that “the voice of the citizen is heard,” emphasising the ministry’s responsiveness to the public and solving problems.

“Al-Saleh also reviewed developments on the Gulf Railway project, connecting Kuwait with GCC countries, which includes a high-speed rail link to Riyadh. The project will cover 111 kilometres from the Nuwaiseeb border crossing to the Shaddadiyah area, where a two-million-square-metre main station has been reserved, and the final design is expected from the consultant in January, with implementation expected to be completed between December 2028 and 2030,” reported the Arab Times.

As per Al-Saleh, the contract for the Mubarak Al-Kabeer Port is expected to be signed in December 2025 as part of a memorandum of understanding with China, while significant progress has been made on the new Kuwait International Airport project, with state-of-the art passenger terminal, parking facilities, road network, and service structures are all set to make the airport a regional transport landmark.

The official also mentioned recent milestones, including the opening of the Darwazat Al-Abdulrazzaq intersection and the Avenues Bridge, as well as the near-completion of major phases of the Damascus Street development, South Surra roads, and the Sabah Al-Nasser Bridge, all of which will alleviate traffic congestion.

Discussing wastewater infrastructure, Al-Saleh talked at great length about the Umm Al-Hayman wastewater treatment plant, which was carried out as a public-private partnership, and currently produces 500,000 cubic metres of advanced treated water for agricultural and landscaping use in central and southern regions. The development of the Kabd North wastewater treatment plant is also underway to support the northern wastewater system and expand the treated water used for afforestation.

The official highlighted Kuwait’s efforts to maintain high standards, such as modernising the road laboratories, enhancing the government testing and quality-control centre, and using new technologies for inspecting roadworks, to ensure that they comply with specifications.

He also highlighted governance achievements, such as the adoption of the Corporate Governance Guide, participation in the “Performance” project with the National Anti-Corruption Commission (Nazaha), and the development of a Code of Conduct to promote integrity and accountability.

Talking about the progress in Kuwait’s digital transformation efforts, Al-Saleh mentioned the launch of new e-services via the “Sahel” application, along with the implementation of a unified GIS system to monitor road and maintenance projects with very high accuracy.

“Maintenance contracts have become 100% Kuwaitized, providing job security for Kuwaiti engineers and technicians and expanding training programmes for operating wastewater facilities,” he concluded.

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The expansion supports Oman’s long-term aviation strategy, which aims to raise the sector’s GDP contribution from 159 million Omani rials (USD 413 million) in 2018 to 890 million rials by 2030, a more than sixfold increase. The strategy also targets handling 40 million passengers annually by 2030, double the levels recorded in 2019.

“The authority has focused on maximising the benefits of Oman’s position as a regional and global logistics hub, leveraging its strategic geographic location on international air routes. This is achieved through the development of Omani airports as key hubs for air connectivity and the transport of goods and passengers, facilitating domestic connections and encouraging tourism between the governorates,” the ONA reported.

The development comes amid the good news of the Sultanate’s aviation sector experiencing a remarkable revenue surge. In 2024, the Civil Aviation Authority of Oman (CAA) reported a staggering 43% increase in revenue, reaching a total of RO 105.31 million compared to 2023’s RO 73.39 million.

Oman has continued to implement a broader strategy to establish itself as a regional aviation hub, leveraging its geographic location and world-class infrastructure.

According to the analysts, the latest revenue numbers will have far-reaching implications, strengthening the Sultanate’s position in global tourism, cargo logistics, and international investment.

The number of aircraft movements in Omani airspace surged by 14% in 2024, marking over 530,300 aircraft movements compared to 465,100 in 2023. Apart from expanding its network by establishing new air routes, which have connected the Gulf nation to major cities in Asia, Europe, and Africa, there has been a parallel rise in domestic flights and routes between Oman’s major cities, through a network of smaller regional airports.

The Oman Civil Aviation Authority has also facilitated partnerships with both full-service and low-cost carriers, increasing the volume of tourists and business travellers flying into the Sultanate.

The nation is also positioning itself as a regional logistics and cargo hub, capitalising on its strategic location between Europe, Africa, and Asia. The expansion of cargo services is contributing significantly to the increase in aviation sector-related revenue flow.

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The data, collected by the Dubai Department of Economy and Tourism (DET), suggests that Dubai’s continued rise as a premier tourist destination results from sustained investment in infrastructure, strategic marketing campaigns, and the appeal of its luxury hospitality sector. The impressive growth in tourist arrivals also coincided with a record 92 million passenger arrivals at Dubai International Airport (DXB) in 2024, which is regarded as one of the busiest global transit hubs. Notably, the fact that Dubai welcomed 18.72 million visitors last year indicates a growing trend: a higher proportion of travellers are now choosing to stay in the city rather than merely using the airport for connecting flights.

Possibilities galore

Impactful local and international partnerships, creative global campaigns, and major events were key contributors to Dubai’s tourism sector reaching another record-breaking year in 2024. In fact, the Dubai Economic Agenda (D33), which aims to double the size of the Emirati city’s economy by 2033, sees the increase in international visitation as perfectly aligned with its goals.

One immediate beneficiary of this positive trend was the Emirati city’s hospitality sector, which experienced substantial growth. Hotel occupancy rates in 2024 were recorded at 78.2%, surpassing the previous year’s rate of 77.4%. Meanwhile, the total number of hotel rooms in the city expanded from 150,291 to 154,016 over 12 months.

Properties like One&Only One Za’abeel, The Lana Dorchester Collection, and SIRO One Za’abeel were among the most anticipated hotel openings of 2024. These additions contributed significantly to the increase in occupied room nights, which rose to 43.03 million, compared to 41.7 million in 2023. To add to the good news, Dubai has now become the number one city globally for Foreign Direct Investment (FDI) into tourism, according to the Financial Times’ “FDI Markets” data. The announcement of key projects like the expansion of Al Maktoum International Airport (DWC) will further provide the foundation for Dubai’s strategic growth.

The Dubai Department of Economy and Tourism (DET) has continued to collaborate closely with partners across the public and private sectors to develop and enhance Dubai’s diverse offerings, ensuring the timely delivery of world-class infrastructure, exceptional service at all touchpoints, and experiences that cater to all budgets and preferences. This was complemented by a highly successful diversified market strategy in more than 60 countries, propelling Dubai’s exceptional industry performance in 2024.

“Maintaining continuous dialogue with domestic stakeholders and more than 3,000 international partners, DET’s year-round marketing activities showcased the city as not only a must-visit destination but also one that continues to attract permanent residents from around the world,” Emirates News Agency stated.

Becoming a smart city in its truest form

Dubai will unveil the world’s tallest wellbeing resort, named “Therme Dubai,” in 2028. The facility will be located in Zabeel Park, covering 500,000 square feet and reaching a height of 100 metres. It will host a mix of relaxation, leisure, family entertainment, and healthcare services, designed to attract up to 1.7 million visitors annually. Set to be built at an estimated cost of $544 million (AED 2 billion), the project will be developed in partnership with Therme Group, an international leader in wellbeing infrastructure.

The resort will feature innovative wellness zones, including a family-friendly play zone, a relaxing retreat for adults, and a rejuvenation space. Attractions will include Michelin-star dining, 18-metre waterfalls, and the world’s largest indoor botanical garden.

Sustainability will be central to the design, with 90% of the water used being recycled and 80% of cooling needs met through clean energy. Therme Dubai aims to transform the city into a leading destination for wellness tourism, supporting Dubai’s ongoing commitment to quality of life and sustainable development.

The resort will also align with the “Dubai 2040 Urban Master Plan,” which seeks to create vibrant, healthy communities and improve the quality of life. By enabling a wholesome environment and enhancing Dubai’s competitive edge, the project will attract global companies and foreign investments. Therme Dubai, with its focus on wellness, healthcare, and recreational experiences, will further bolster the Emirati city’s growing medical tourism sector.

The resort will champion sustainability by recycling 90% of the water used in its thermal pools and meeting 80% of its cooling needs with clean energy. It will house the world’s largest indoor botanical garden, which will support urban biodiversity while showcasing over 200 plant species from around the world.

Dubai is now becoming a preferred destination for tourists looking for efficient, safe, and unforgettable experiences. The Emirati city is responding to this demand through technology-driven innovations like “Keyless Entry” for short-term rentals. Developed by the Security Industry Regulatory Agency (SIRA) and the Department of Economy and Tourism (DET), the solution offers guests digital access codes on their smartphones, eliminating the need for physical keys while enhancing both convenience and security.

The driving force behind “Keyless Entry” becoming the new normal in Dubai’s tourism sector is Deluxe Holiday Homes, which has integrated SIRA-approved smart locks into its growing property portfolio. This system allows for real-time access monitoring and specific guest permissions, providing property owners with greater security and giving guests the flexibility to check in at any time without physical keys—ideal for Dubai’s non-stop lifestyle.

Deluxe Holiday Homes is also embracing other next-generation technologies, supporting Dubai’s smart city goals and adapting to the evolving needs of travellers. The company now offers a variety of payment options, including traditional methods like cash, bank transfers, and major credit cards, as well as MIR Cards for Russian visitors, PayPal, and prominent digital currencies like Bitcoin and USDT.

The growth machine chugs on

Strategically located at the crossroads of East and West, Dubai continues to attract foreign visitors. North East and South East Asia combined delivered the highest growth rate of 24%, followed by Africa (+20%) and CIS (Commonwealth of Independent States) & Eastern Europe (+16%). Visitors from Western Europe also grew significantly (up 14%), while maintaining its position as the leading source region for international visitors to Dubai.

Helal Saeed Almarri, Director-General of the Dubai Department of Economy and Tourism (DET), said, “Dubai’s exceptional performance in the tourism sector for 2024 is a powerful testament to the visionary leadership of H.H. Sheikh Mohammed bin Rashid Al Maktoum. Through careful planning and dynamic, agile policy implementation, Dubai has successfully navigated global economic and geographic headwinds to achieve record-setting growth in tourism for a second consecutive year, having long resumed its pre-pandemic upward trajectory. This achievement is not an isolated milestone but a foundational pillar of Dubai’s diversified growth strategy, one that fuels interconnected D33 objectives—spanning talent acquisition, FDI inflow, and the global competitiveness of businesses operating within Dubai’s ecosystem.”

“Dubai’s economic trajectory is driven by its ability to adapt and innovate. This is supported by a diversified portfolio of industries, enhanced global connectivity, and an increasingly business-friendly environment. World-class infrastructure development and sustained investment in capacity have further solidified Dubai’s standing as a global leader across all critical segments. As we move forward into 2025, Dubai will continue charting new avenues for growth. By transcending traditional tourism, facilitating high-impact investment opportunities, nurturing entrepreneurship, and magnetising global talent, we will reinforce Dubai’s position as not only a preferred destination but also as a cornerstone of global economic leadership and innovation,” he added.

According to STR data, Dubai is significantly ahead of international peers such as New York, Bangkok, Paris, and Singapore, and nearly on par with London, in terms of total room inventory. Furthermore, a robust pipeline of new properties, such as the upcoming Jumeirah Marsa Al Arab and the Mandarin Oriental Downtown, will ensure the city can cater to the ever-growing demand from both visitors and residents. The high quality of hospitality establishments in Dubai also continues to be recognised. In its first year of operations, “The Lana” was ranked number 23 on “The World’s 50 Best Hotels 2024” list, while “Atlantis The Royal,” in its second year, was ranked number nine.

Smart Marketing: The decisive element

The Department of Economy and Tourism has been actively rolling out targeted campaigns to attract visitors from emerging tourism markets. These initiatives reportedly included extensive promotions positioning Dubai as a top winter destination, as well as celebrity-led advertising campaigns targeting key markets like India and South Korea. Digital media and influencer marketing have become the winning formula, with content creators encouraged to come to Dubai and, through their travel vlogs, help the emirate reach wider and younger audiences.

“In 2024, average hotel occupancy grew to 78.2%, up from 77.4% in 2023, and occupied room nights rose to a high of 43.03 million, representing a 3% growth compared to 41.7 million in 2023. Reflecting the hospitality sector’s commitment to cater to all budgets and preferences, the Average Daily Rate (ADR) of AED538 only rose marginally against the ADR of AED536 in 2023. According to STR Data, Dubai now provides guests with more attractive average rates than global peers, including Paris, New York, London, and Singapore,” Emirates News Agency reported.

Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing (DCTCM), said, “Dubai’s remarkable tourism performance in 2024 reflects the sustained commitment and strategic efforts of our extensive network of partners and stakeholders, and the guidance of our city’s visionary leadership. Our market strategy, built on bespoke and diversified campaigns, has been pivotal in showcasing Dubai’s diverse tourism offerings to the world, and we have leveraged strong partnerships with public and private sector organisations to enhance our global reach and promote Dubai as a leading hub for business, leisure, and innovation.”

“These collaborations have not only intensified our international efforts but have also made Dubai the destination of choice for new and returning visitors, with an increasing number of them finding the city appealing to relocate to permanently. A powerful sense of community among the almost 200 nationalities living in Dubai is also seeing more residents advocate for the city, inviting and hosting their friends and family to experience it for themselves,” he added, announcing, “As we aim to build on this momentum throughout 2025, we are committed to maintaining the highest standards of service and continuously innovating to exceed expectations, whether for tourists visiting for the first time or loyal repeat guests and residents exploring the city and enjoying its lifestyle offerings.”

Talking about DET’s creative global campaigns, one of the most notable in 2024 was “Dubai, What’s Not to Love?”, which positioned the city as a destination of choice for winter. Another was “If You Go, You Know,” which took a fresh approach, with the Emirati city’s residents showcasing their favourite parts of Dubai to encourage their compatriots to experience all it has to offer. Tailored campaigns for specific market activations included “Dubai: A Whole New You,” featuring Indian father-daughter actor duo Saif and Sara Ali Khan, and “Dubai: Who’s Ready?” starring Korean actors Park Shin-Hye and Park Hyung-Sik from the Netflix series “Doctor Slump.”

DET also announced several partnerships aimed at showcasing the city’s offerings, driving visitation growth, and further enhancing the tourism experience, including strategic agreements with Emirates, IHG Hotels & Resorts, Hilton, and Emaar Hospitality Group, all designed to elevate the destination experience for visitors and leverage the global reach of these organisations among potential travellers.

“The department also developed relationships with popular global personalities, such as Colombian singer Balvin, who filmed two music videos in the city, and American YouTuber Mr. Beast, among others, to tap into their loyal audiences and create engaging content,” Emirates News Agency noted.

These efforts by Dubai’s tourism and hospitality sectors in 2024 were recognised globally with a host of accolades and awards. At the 31st annual World Travel Awards, the Emirati city was crowned the world’s leading shopping destination and the world’s leading exhibition destination.

Mina Rashid was named the world’s leading cruise port, while Dubai International Airport became the world’s leading airport. DXB also marked a decade at the top of Airports Council International’s (ACI) list of the world’s busiest international airports (for traffic in 2023), following this up by welcoming a total of 92.3 million guests in 2024.

Dubai: New event capital of the world?

The third edition of the MICHELIN Guide Dubai was unveiled in July 2024, featuring 106 restaurants across 35 cuisines, an 18% increase from 2023. Four restaurants were awarded two stars, 15 with one star, three with a Green Star, 18 Bib Gourmands, and 69 MICHELIN-selected restaurants.

On the “World’s 50 Best Restaurants 2024” list, Tresind Studio was ranked number 13 and named the best restaurant in the Middle East, while Orfali Bros Bistro was ranked number 64 on the extended list. In November 2024, the Emirati city hosted the eighth edition of “The Best Chef Awards,” marking the first time the awards took place in the Middle East and the largest edition to date. Held at Atlantis, The Palm, the prestigious event highlighted Dubai’s status as a global gastronomy capital, with 550 chefs from 61 countries honoured.

Culinary excellence in the sector was again rewarded with the recent announcement of the Middle East & North Africa’s (MENA) 50 Best Restaurants 2025, with Dubai securing 19 spots, including a clean sweep of the top three. With the opening of gastronomy-focused developments such as J1 Beach, new opportunities continue to emerge for more F&B (Food and Beverage) concepts to succeed and secure global recognition.

“High standards and a flow of talent into the tourism and related sectors continued to be driven by Dubai College of Tourism (DCT), part of DET. In 2024, DCT launched the Middle East’s first apprenticeship in Culinary Operations, anchored by leading industry partners, including Gates Hospitality, Hilton, and JW Marriott Marquis Hotel Dubai. The transformative two-year programme provides a new source of recruiting and qualifying talent for Dubai’s ever-growing culinary sector,” Emirates News Agency observed.

Organised by the Dubai Festivals and Retail Establishment (DFRE), part of DET, Dubai also saw some of the biggest events of 2024. One was the eighth edition of the “Dubai Fitness Challenge,” which attracted a record 2.7 million participants, and the “Dubai Shopping Festival,” which celebrated its landmark 30th edition.

Trade shows, industry exhibitions, and MICE sector events also played a critical role in increasing international visitation to Dubai, providing opportunities for local and global businesses. Major industry events that attracted thousands of visitors and exhibitors in 2024 included GITEX Global (200,000 attendees, the highest in its 44-year history), Gulfood (150,000 attendees), and Arabian Travel Market (46,000 attendees). The city also secured the hosting of 437 future events in 2024, which will attract an estimated 210,731 delegates to the Emirati city over the coming years.

Only good days ahead

Work has already begun on the new AED128 billion passenger terminal at Al Maktoum International Airport (DWC), which will be the world’s largest upon its completion. The airport is estimated to handle a passenger capacity of 260 million annually.

The “2040 Urban Master Plan” aims to transform Dubai into a “20-Minute City.” As part of this, Dubai Metro’s Blue Line will be extended to 30 kilometres, connecting 14 stations and serving an expected population of about one million people.

DET is currently engaging with hospitality stakeholders to explore opportunities to bring more brands and offerings into the Emirati city. The goal is simple: to further diversify the range of amenities available to visitors and residents, particularly in new and developing districts, including Palm Jebel Ali and Dubai South.

While the city ranks number one globally for attracting greenfield FDI projects in the tourism sector, it will continue, in the coming days, to leverage innovation and new technologies such as artificial intelligence (AI) and virtual reality (VR) to create personalised and immersive experiences for both new and repeat visitors.

The “Visit Dubai” mobile app now utilises AI to offer tailored recommendations. Additionally, virtual tours allow tourists to explore attractions before their trips. AI is also being used for biometric hotel check-ins and automated immigration processes at Dubai Airport, enhancing the overall travel experience and, most importantly, transforming the Emirati city into a “smart” destination in the truest sense, driven heavily by technology.

Dubai’s tourism sector set a new record with 18.72 million international visitors in 2024. This success is driven by investments in infrastructure, marketing, and hospitality. The city’s focus on sustainability, technology, and diverse offerings strengthens its global tourism leadership. Upcoming projects like Therme Dubai and continuous enhancements promise a bright future. Aligning with the D33 economic agenda, Dubai is set to attract even more visitors, investors, and residents in the coming years.

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For the twenty-four remote Australian locations without direct connection to any other airline, losing the airline would be devastating. Additionally, it would result in even less competition in the highly consolidated domestic aviation industry. Only three airline groups operate more than 85% of the routes.

However, Bonza did not find herself in this predicament by accident. Errors in judgment were probably a major factor from the start.

What went awry?

Bonza introduced a small fleet of Boeing B737 jets into the Australian market. However, these had no lower operating costs than the B737s that Qantas, Virgin, and Rex already used. Furthermore, Bonza’s little fleet lacked any scale advantage compared to crew or aircraft scheduling.

Second, the airline used a completely different strategy, putting the app first, to sell tickets. Customers could only look for and purchase tickets directly through the official Bonza app. However, this meant that prospective buyers could frequently not find Bonza flights when using traditional search methods like search engines or booking websites.

The fact that Bonza found it difficult to acquire momentum on its flights to Gold Coast airport, which welcomes a sizable 250,000 domestic travellers each month, highlights this problem with the business strategy.

Thirdly, although Bonza provided service to a distinct set of destinations, its network-wide flight schedule was far from ideal. Certain routes had only one weekly flight, in contrast to the far more regular gateway city services offered by Rex and QantasLink.

It may be feasible for European airlines such as EasyJet or Ryanair to operate fewer than daily flights to smaller tourist sites. However, these airlines are large and connected enough to provide passengers with several network routes. Short regional routes are not the mainstay of their economic plan, in contrast to Bonza.

The success of a jet airline depends on maximising three critical elements: territory, airport accessibility, and market size. Australia provides a harsh starting point for aspiring low-cost carriers on all three fronts.

Market proportions

Airlines offering low-cost and ultra-low-cost services have established themselves well in Southeast Asia, the United States, and Europe. However, compared to Australia, these markets are orders of magnitude bigger.

For instance, the US provides airlines with a market of sizable cities spread out over a vast region. The populations of Miami (6.1 million), Houston (7.1 million), Chicago (9.6 million), and New York are getting close to 20 million.

Nearly 450 million people live in the European Union. Furthermore, there are more than 30 European cities with a population of one million or more, including the United Kingdom. There aren’t many cities like that for Australian carriers.

Australia lacks the range of secondary airports that European low-cost carriers have used to access adjacent markets and reduce operating costs, as well as the population density of Europe.

Airport accessibility

The next major obstacle low-cost and extremely low-cost market entrants must overcome is airport access. Most major routes connecting major Australian cities run into Sydney are all concentrated along the east coast.

Aircraft movements at Sydney Airport are artificially limited to 80 takeoffs and landings per hour during peak hours by regulations, which also place significant restrictions on the use of the airport. The incumbent operators retain the majority of the slots.

London Heathrow, on the other hand, is a limited two-runway airport that can handle 88 movements per hour.

Some alleviation from this capacity constraint will be available upon completion of the new Western Sydney Airport. It won’t, however, change the reality that Sydney Airport is subject to an operational restriction.

Geographical reasons

The final limitation in Australia is geographic. They have a line of big cities on the East Coast, unlike Europe, the US, or Southeast Asia. There isn’t a hub that links our larger cities with other regional locations.

The populations of towns too far away for easy access by rail or road are frequently too tiny to allow regular, let alone profitable, flights to the larger centres.

Small “turboprop” aircraft can operate with success on some regional routes. The cost per passenger to operate these is higher than that of passenger aircraft that connect the major cities. However, operating larger aircraft on these itineraries is insensible if the flights are only half full.

Walk down memory lane

The 1990s end of Australia’s two airlines programme, in which two similar corporations, one private and one public, maintained identical fleets and timetables, was expected to boost competition. A litany of failures has occurred.

The first major example was Compass Airlines, which began in 1990, failed in 1991, was revived in 1992, and crashed in 1993. Tigerair, OzJet, Strategic Airlines, and others have come and gone since then.

As Impulse Airlines showed, Qantas acquisitions are the best for tiny airlines. Impulse was a regional airline from 1992 until 2004 before Qantas bought it and started Jetstar. Qantas uses Jetstar as a “flanker” or “fighter” subsidiary to prevent low-cost competitors while maintaining its premium brand status.

Virgin Australia, which took much of Ansett Australia’s market, is the only serious competitor. Even that was uncertain. Although the Morrison government wanted Virgin to fail at the start of the COVID pandemic, Bain Capital saved it. Qantas, always the recipient of political favours, has refused to repay billions in public help.

More disappointing than surprising is Bonza’s departure. However, the lack of actual rivalry in the Australian airline business is unexpected. The “golden triangle” (Sydney, Melbourne, and Brisbane) has some of the world’s busiest flights and passengers. Four, six, or more airlines provide similar routes. Australians can fly Virgin, Qantas, or Jetstar.

This hurts customers. Australians rarely have a choice of three or four airline groups, yet the Australian Competition and Consumer Commission found lower fares. As competition decreases, airfares rise considerably.

Another 1980s and 1990s neoliberal microeconomic reform programme failure is the greater story. Much of the country’s political class still romanticises this Hawke-Keating and Howard-era programme. However, most Australians now see it as a failure, and politicians are responding.

Failures like financial deregulation, privatisation, and outsourcing policy to consulting firms are easy to identify but harder to fix. After the Chris Minns-led New South Wales government exposed private toll roads’ devastation, calls for renationalization have grown. The failure of the National Electricity Market and privatisation has forced states to generate electricity again.

Restoring a two-airline regime is unwise for the aviation sector. Instead of waiting for the market, competition must be enforced.

The most crucial step is forcing Qantas to sell Jetstar. Not easy. Prime Minister Anthony Albanese calls compelled divestiture for competition regulators a “Soviet-style” policy. Whether Stalin would have liked better competition legislation, it’s hard to see another method to abolish the near-monopoly that is much of the Australian industry.

Restoring public authority over landing and takeoff slots at Australia’s privatised airport system is more realistic but still tough. The administration is reviewing the system to make it more welcoming to newcomers. As Bonza joins the long list of failures, new entrants are unlikely to arrive soon.

Setbacks for regional Australia

Australia’s tiny population, the capacity restrictions placed on Sydney Airport, the existence of powerful existing airlines, and the East Coast market’s linear structure all contribute to the difficulty of new entrants.

After Ansett collapsed, Virgin Blue took over the space. However, two iterations of Compass, Impulse, Tiger, Air Australia, and Ozjet failed as market entrants. Even Air New Zealand decides not to do domestic operations in Australia despite having the fleet, strong brand, and market access necessary to justify joining the country.

Australian regional towns might take little comfort in knowing why new entrants fail. However, capital city travellers hoping for increased competition on the main East Coast routes won’t see much difference because of Bonza’s tiny footprint.

According to Michael Kaine, national secretary of the transport workers union, “Bonza must ensure staff are prioritised and informed as this process plays out.”

Along with criticising the “unchecked corporate greed” in the aviation sector that has resulted in higher tickets, Mr. Kaine issued a warning to carriers, saying that they “have little chance of survival” in the competitive market.

The post Bonza’s collapse highlights new airline issues appeared first on International Finance.

The city has a history of implementing bold, futuristic ideas and is not afraid to take on ambitious projects.

The following are some of the ways the city demonstrates its resolve to lead the way in metropolitan development:

World’s Largest Airport

The largest airport in the world, Al Maktoum International (AMI), is located in Dubai, a city known for its brightly lit skyscrapers and busy streets.

On April 28, the airport announced the second phase of its expansion. It will be five times larger than Dubai International Airport (DXB) when it is finished.

AMI can handle up to 260 million passengers annually once it is fully operational, which will only serve to increase the city’s tourism even further.

Passengers are in for a treat, because the airport will be using technologies never seen in the aviation industry before.

The new airport will cover 70 square kilometres. More than 400 aircraft gates will be housed in five passenger terminals, which will have five parallel runways. It is anticipated that all DXB operations will progressively move to AMI within ten years.

Faster Travel On The Tracks

Residents of Dubai enjoy taking trips outside of the city, particularly on public holidays.

Travel between the Emirates will now be quicker and easier thanks to the nearly completed construction of the much awaited Etihad Rail passenger train.

The passenger train will make travel easier and more comfortable for locals by connecting 11 cities and regions throughout the United Arab Emirates.

It will pass through Al Sila and Fujairah, including Al Ruwais, Al Mirfa, Sharjah, and Al Dhaid, as well as Dubai and Abu Dhabi.

The UAE’s National Rail Network is now complete and in use for commercial purposes, according to the Etihad Rail website.

Flying Taxis To Shorten Abu Dhabi-Dubai Travel Time

It never occurred to anyone that flying cars would exist outside of science fiction. But Dubai has a remarkable ability to make the fantastical become real.

Soon, flying taxis will be accessible, reducing the duration of the trip from Abu Dhabi to Dubai to just thirty minutes.

Air taxi operations are anticipated to begin by 2025 or early 2026, according to Joby Aviation, a US-based company that develops electric vertical takeoff and landing (eVTOL) aircraft for commercial passenger service.

The 20-Minute City

With the help of this initiative, residents can travel throughout the city in sustainable ways by bicycle, foot, and transportation, and can arrive at their destinations in under 20 minutes.

According to the Dubai 2040 Urban Master Plan, 55% of the population lives 800 meters or less from a mass transit station, making it possible for them to get to 80% of their daily needs and destinations.

In the meantime, Dubai’s Roads and Transport Authority (RTA) revised its 2024–2030 strategic plan to account for non-driving commuters.

The goal of the RTA plan is to encourage the construction of transportation infrastructure and roads that will improve living in the 20-minute city.

The post Four strategies shaping Dubai into the city of tomorrow appeared first on International Finance.

Oman SATS LLC, which is the exclusive cargo handler of Oman Air, recently won the honours of ‘Best Cargo Handling Company – Oman 2023’ and ‘Best CEO – Air Cargo Handling – Oman 2023’, in the recently concluded International Finance Awards.

Oman SATS, which is a joint venture between Oman Airports and SATS from Singapore, is tasked to serve the Sultanate of Oman’s aviation industry, apart from strengthening the Middle Eastern country’s position as a major cargo hub in the Gulf region.

When it comes to providing cargo handling services to and from Muscat, be it products like e-commerce, pharmaceuticals or dangerous goods and perishable items, Oman SATS delivers top-notch services.

Not resting on its past laurels, Oman SATS has embarked on a journey to level up its operational efficiency, apart from customising its services and solutions as per the ever-changing customer and industry needs.

“Oman SATS has embarked on the intensive use of technologies to digitalise its operations, improve processes, and invest in infrastructure and staff training,” the venture stated.

As part of this process, Oman SATS has launched a scholarship programme to provide opportunities for its staff to upgrade themselves with the goal of having staff with the right academic and operational skill sets as per the needs of the changing operational environment. The scholarships also work as a form of incentive for the staff to continue learning after having left the academic institutions some years back.

“Oman SATS firm believes that employees’ development is a key factor in overall company progress. The employees showed interest in the scholarships offered by the company and we wish all the best for the selected candidates,” the business told the International Finance.

Also, the company has added a new 20-ton Forklift model Heli (CPCD 200-VZ1-12 IIIG2) to its existing equipment fleet, with the aim of supporting Oman’s oil and gas industry. With the new equipment, the Company is able to handle heavy cargo more efficiently, to the convenience of its clients.

The venture has also established service standards (KPIs) in most operational critical activities to ensure these processes are always monitored and measured. This will be backed up by customer surveys, KPI meetings, regular risk and opportunities review exercises, airline meetings and internal audits. The establishment and meeting of the KPIs serve as a service promise by the Company towards its customers and users of its facility.

All these above exercises, using parameters like Quality of Service Provided, Customer Satisfaction, Performance and effectiveness of QMS, The Need for Improvement, Actions Taken Against Operational Risks and Performance of External Providers helped track the Company’s performances in a transparent way with the industry.

A Determined Leader Making A Difference

Much of the Oman SATS’ recent performances have been guided by the strong and visionary leadership of Mr. Siang Tang Tan, who became the company’s CEO in 2016.

Known as “ST” in the aviation industry, Mr. Siang Tang Tan is a veteran in his field with close to thirty years of experience. His previous leadership stints in the aviation industries of countries like Singapore, Hong Kong and China have been the decisive factor behind Oman SATS standing tall above its rivals.

Among ST’s achievements as Oman SATS CEO, he transformed Muscat International Airport’s cargo as one of the best in the world, in terms of infrastructure, service standards and innovation. Also, under his watch, the company emerged as the exclusive cargo handler of Oman Air and Salam Air.

Apart from all these, the venture has contributed to the Oman aviation industry’s transformation through its digitalisation efforts and innovations like a mobile application, self-service kiosks, and the introduction of paperless transaction methods like e-airway bills.

By introducing an employee scholarship programme and ‘Key Performance Indicators’, Oman SATS shows that it truly believes in its people and skill upgrading, as well as keeping its service commitment to the industry.

The post With employee scholarships & ‘Key Performance Indicators’, Oman SATS edges out its rivals appeared first on International Finance.

To carry out the strategy, the business recently finalized two different contracts with Olsztyn Mazury Airport and the Polish Investment and Trade Agency.

Just a few days back, the LuLu Group debuted its Italian sourcing, food processing, and export base.

To handle fresh goods including meat, berries, apples, cheese, and other packaged foods that will be shipped to markets in the Middle East and North Africa, the Far East, and India, the retail behemoth will build a facility at Olsztyn Mazury Airport as part of its new investment in Poland.

The envisioned building will house the company’s first Central and Eastern European logistics hub.

It will improve cooperation between Polish producers, suppliers, and contractors in the UAE and expand the availability of local Polish items on the shelves of LuLu’s supermarkets.

According to Pawel Kurtasz, Chairman of the Management Board of the Polish Investment and Trade Agency, the investment would also provide new prospects for regional Polish producers.

According to a statement, the logistics centre in Poland will significantly aid the growth of LuLu Group International’s business in Central and Eastern Europe.

The new investment, according to the statement, is advancing the company’s expansion, which will strengthen its position as one of the most significant players in the global retail market.

LuLu Group also opened its world-class sourcing, food processing and export hub in Italy, a move which will further boost the company’s sourcing operations from Europe, thus ensuring uninterrupted supply and price stability of food products.

Located at World Trade Center Malpensa Airport in Milan, the state-of-the-art facility will primarily focus on sourcing, processing, storing, packaging and exporting top-quality food products from Italy to more than 255 LuLu Hypermarkets spread across Gulf countries, Egypt, India, Indonesia and Malaysia.

The focus categories will include cheeses, chocolates, fruit jams, sweet and puff pastries, organic pasta, infused extra-virgin olive oil, and high-quality sea salt from well-known Italian brands. Apart from packed food, the centre will also source and export a wide range of fruits and vegetables, including apples, grapes, kiwis and olives.

LuLu Group, which has an annual turnover of USD 8 billion and employs over 65,000 people from 43 different countries, is currently ranked as the numero uno retailer in the Middle East and North Africa (MENA) region and as one of the Top 50 fastest growing retailers in the world by Deloitte.

LuLu Group has similar food processing centres in the UK, US, Spain, Turkey, Vietnam, Thailand, China, and South Africa among others.

The post With new facilities in Poland & Italy, LuLu Group muscles up its European presence appeared first on International Finance.

Their products fall into a variety of industries, including jewellery, cosmetics, clothing, cuisine, beverages, fashion, and technology. The company was established in 1983, and it has its main office in Dubai, United Arab Emirates. DDF is a government-owned Investment Corporation, and it comes under Sheikh Ahmed bin Saeed Al Maktoum who is the head of the Dubai Civil Aviation Authority.

DDF was established in December 1983 and had sales of USD 20 million in its first year. DDF sales increased from USD 44,000 on the first day of trading in December 1983 to USD 32 million in 1986. Arrivals Duty-Free opened to the public in 1987 and was making about USD 200,000 per day.

In 1989, Dubai Duty Free launched its ‘Finest Surprise’ promotion, a raffle for 1,000 tickets to win a high-end vehicle. In 1990, there were approximately Five million passengers at the airport, which contributed to USD 95 million worth of revenue, although operations were severely hampered by Iraq’s invasion of Kuwait. Since then, the company has developed into one of the largest travel retail operators in the world, with USD 2.02 billion in sales in 2019.

With the opening of the Sheikh Rashid terminal at Dubai International Airport in 2000, the number of employees at the different Dubai Duty Free sites throughout the airport increased to 900, along with a 5,400 M2 increase in floor area. The turnover of the company in 2003 reached USD 380 million, and around 17,000 M2 of additional shop space was added with the opening of Terminal 3 and Concourses 2 and 3 at Dubai International.

Dubai Duty Free has experienced tremendous growth and development over the years and has been dubbed the world’s largest airport shop in terms of revenue. The entire Dubai International Airport’s 38,000 square metres of retail area are occupied by retail activity. Over 6,100 employees from 47 different countries work at the Dubai Duty Free, including 25 of the original 100 employees hired in 1983. It anticipates business to exceed USD 3 billion annually by 2025 and to employ between 9,000 and 10,000 people.

The brain behind this successful venture is 80-year-old Colm McLoughlin, an Irish businessman, and the executive vice chairman and CEO of the company.

Who is Colm McLoughlin?
• Colm McLoughlin was born in July 1943, in Ballinasloe, County Galway, Ireland and happens to be the brother of Ray McLoughlin, former Ireland international rugby player
• In 1960, he went to London to study dentistry, but he began working in retail
• Colm McLoughlin worked for Woolworths, an Australian multinational retail and finance company and soon became one of the youngest managers in the company
• In 1969, he joined Shannon Airport Duty Free, and went on to become general manager of the duty-free operation
• In 1983, at the request of the Government of Dubai, Colm McLoughlin joined Dubai Duty Free at Dubai International Airport
• He was the first non-UAE national at the time to receive the ‘Most Distinguished Employee Award’ from the ‘Dubai Government Excellence Awards’ in 2000
• In 2004, Colm McLoughlin was honoured with the ‘Frontier Lifetime Achievement Award’ which was presented by Frontier magazine, making him only the second person after Brendan O’Regan
• He was also named one of the ‘50 Most Influential Expats’ in the UAE, in a list released by Forbes Middle East Magazine in 2016
• In 2019, Colm McLoughlin celebrated 50 years in the duty free industry
• According to Arabian Business, Colm McLoughlin’s net worth is around USD 1.85 billion, as of January 2023

‘DDF set up was based on Shannon Duty Free’

On July 15, 1983, the day before his 40th birthday, Colm arrived in Dubai. He travelled to Dubai on a six-month contract to establish duty free operations along with two other Irish industry professionals, George Horan and John Sutcliffe.

Sutcliffe, one of the three, departed DDF in the 1990s to work in Bahrain for Aer Rianta, while Horan quit DDF in June 2016. As we all know, Colm continues to lead DDF activities with great success.

In an interview with Gulf News, he recalled how he lost his luggage when he first came to Dubai back then.

“My luggage did not arrive when I landed in Dubai. I flew from Dublin to London and took another flight from London to Dubai. There were no direct flights from Dublin in those days,” Colm McLoughlin explained.

“The first thing I had to do was shop for clothes. So I headed to Al Ghurair Mall. The mall was closed between 1 pm and 4 pm, which I was not aware of. So I waited outside the mall for two hours and the heat took me by surprise. Even when I stepped onto the balcony of my hotel room without footwear, it was as if my feet would burn. We were right in the middle of the summer,” he said.

He also asserted how from a small team he built an empire.

“Our team arrived in July and on December 20, DDF launched its operations. We were a small team of ten people. Today, DDF employs more than 2,600 people. The operation has consistently raised the benchmark for airport retail and it continues to grow. We could not have achieved this without the dedicated team we have on board,” Colm McLoughlin added.

“DDF was set up based on Shannon Duty Free operations at the Shannon Airport located in County Clare, Ireland. We started work based on what we knew from the operations at Shannon Airport. Soon we started sourcing our suppliers and agents. All along, we kept asking ourselves what would and could be different here,” he noted.

He concluded by saying that the UAE has a dynamic economy, which is diversifying over a period of time.

The post Business Leader of the Week: Meet Colm McLoughlin, Dubai Airport’s retail king appeared first on International Finance.