Abu Dhabi records 18% rise in hotel guests in October

The tourism body said that 418,883 guests checked into Abu Dhabi’s 163 hotels and hotel apartments in October. (Courtesy Yas Viceroy Hotel)
Updated 25 November 2017
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Abu Dhabi records 18% rise in hotel guests in October

DUBAI: Abu Dhabi hotels reported brisk demand in October with Chinese visitor arrivals to the emirate expanding at high double-digit figures, latest data released by the Department of Culture and Tourism – Abu Dhabi (DCT) show.
The tourism body said that 418,883 guests checked into Abu Dhabi’s 163 hotels and hotel apartments in October, or about 18 percent higher compared with the same month of last year. Year-to-date guest arrivals meanwhile rose by 8 percent to 3.9 million as of October.
“The emirate [is] on track to surpass last year’s record total of 4.4 million,” the tourism authority said, as it earlier predicted the number of international visitors to Abu Dhabi would reach 4.9 million this year, a 10 percent rise from 2016.
The Abu Dhabi tourism body said that the lifting of the visa restrictions on visitors from China at the beginning of the year underpinned a 88 percent rise in tourists from the Asian country to 32,000 during the month.
The benefits reaped from the department’s extensive marketing campaigns across the country including the new ‘Abu Dhabi Week in China’ initiative held recently in Shanghai, the agency said.
Guest arrivals from the US also rose by 80 percent to 18,000 during the month, while major source markets UK and India reported 26 percent and 22 percent increase in visitors to the emirate, respectively.
“Our sustained efforts in improving the worldwide appeal of Abu Dhabi to tourists for both business and leisure is continuing to reap rewards, with the latest figures for guest arrivals supporting our endeavors,” Saif Saeed Ghobash, Director-General of DCT, said in a statement.
“Record numbers of people are staying in our expansive choice of accommodation across all three regions of the emirate and we aim to sustain and improve on this growth throughout Q4, traditionally our busiest time of the year.”
The Louvre Abu Dhabi on Saadiyat Island was opened early this month as the Abu Dhabi government refocuses its economy on non-oil sectors for growth, and has been extensively marketed by the emirate as the ‘jewel in the crown’ of tourism.
Louvre Abu Dhabi will display more than 700 exhibits, with artwork and artifacts from all over the world.


Nestle streamlines R&D to speed up product innovation

Updated 31 min 52 sec ago
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Nestle streamlines R&D to speed up product innovation

LONDON: Food giant Nestle plans to combine its scientific research operations into a single unit in an attempt to speed up development of new products at a time when competition from smaller rivals is intensifying.
The world’s biggest packaged food maker, with brands including Nescafe coffee and Perrier water, has been struggling with slowing sales growth for years. Now it is also under pressure from activist shareholder Daniel Loeb to increase investor returns.
To better compete, the Swiss company told Reuters it would merge its Nestle Research Center and Nestle Institute of Health Sciences (NIHS) into one organization called Nestle Research.
The new entity, to be announced later on Thursday, will continue to be based in Lausanne, Switzerland and will employ around 800 people.
The reorganization, effective July 1, will not involve job cuts or the closure of facilities, a spokesman said.
By linking the “blue-sky” research done at NIHS with the more commercially focused Research Center, it hopes to accelerate the translation of scientific discoveries into marketable products.
It also hopes this will help it compete with smaller, nimbler rivals who have been eating away at the market share of Nestle and other big firms like Danone, Unilever, Kraft Heinz and Kellogg.
Nestle Chief Technology Officer Stefan Palzer acknowledged earlier this month that his company had to keep pace with rising demand for goods that are organic, gluten-free or vegan.
“Big trends are embraced by smaller companies a bit more actively than the big companies,” Palzer told Reuters before Nestle’s streamlining plans had been finalized.
“We are adjusting our portfolio, doing many innovations and renovations to make the portfolio more relevant and to address those trends, but smaller companies are more agile.”
In the US — the world’s biggest packaged food market — small challenger brands could account for 15 percent of a $464 billion sector in a decade’s time, up from about 5 percent last year, Bernstein Research predicted last year.
The combination of research units is the latest move by Palzer aimed at speeding up development and ensuring research efforts are commercially viable.
Palzer, who took over Nestle’s innovation and research and development operations in January, is also supplementing long-term research projects with incremental product launches made faster by experimenting with new ideas more quickly.
Last month, for example, Palzer and colleagues got the idea for a vegetarian or vegan food product while on a business trip.
“Thursday we had an idea, Friday we returned to Switzerland and Monday evening I was able to taste the first prototype,” Palzer said. “Wednesday, this prototype was shown to the executive board, and Friday it was in the global pipeline.”
He declined to give more details of the product, except to say it is currently being assessed by the operations team to see how long it will take to produce and on what machinery.
Other steps include efforts to apply specific developments to more products, such as Nestle’s recent designer sugar crystals launched in low-sugar Milkybars in March, which will go into other products in the future.
The importance of agility was underlined by Nestle’s recent struggle to capitalize on resurgent demand for frozen foods.
The company says it reformulates one third of its product portfolio every year.
Nestle spent 1.72 billion Swiss francs ($1.73 billion) on R&D last year, down slightly from 2016 but up 22 percent from 2012. The company’s sales fell 2.6 percent over the same period.
As a percentage of sales, its expenditure has fluctuated only a little, but demands on the unit have increased.
Wells Fargo analyst John Baumgartner said that across 10 large publicly traded US food companies, median expenses for R&D and advertising have declined 20 percent over the past five years.
“As voids of ideas and marketing have emerged, start-ups have been more responsive to consumer needs, won the culture and created the emotional connections that drive sales,” he said in a recent note.
Palzer said some industry peers had been outsourcing innovation to cut costs, relying on acquisitions of small brands or partnerships with suppliers.
But he said it was critical for Nestle to maintain scientific expertise in-house to keep its own portfolio fresh and to be an attractive partner for collaboration with others. Nestle does R&D around the world, involving around 5,000 people.
Fundamental scientific research will remain key at Nestle, Palzer said, but he also highlighted the value of external partnerships and acquisitions that can bring in new research or capabilities more easily.
Scientific research and innovation itself is not necessarily the reason why big breakthroughs tend to be rare for multinational companies, said Shaun Browne, investment banker at Houlihan Lokey, who advises food companies on deals.
“They often don’t have the patience or passion that is really required,” Browne said. “Often these things are one individual who is just totally determined and passionate about their product and sees it through.”