Travel firm TUI puts plans in place to avoid Brexit disruption

Above, a Greek Taverna is seen in Sandanski, Bulgaria, a few kilometers away from the Bulgarian-Greek borders. TUI had already increased hotel space in places such as Bulgaria in case of a fall in the British currency. (Reuters)
Updated 13 December 2017
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Travel firm TUI puts plans in place to avoid Brexit disruption

BERLIN: European tourism group TUI is putting contingency plans in place for Britain’s exit from the EU, it said on Wednesday, aiming to address potential problem areas such as flying rights, visa requirements and changes in demand.
“Whilst we are not able to control the outcome of these (Brexit) negotiations, we are putting contingency plans in place in order to manage potential disruption to our operations,” it said.
CEO Fritz Joussen said if certain destinations became more expensive for Britons due to a fall in sterling then demand could shift to cheaper countries, and the group had already increased hotel space in places such as Bulgaria and Croatia.
He said UK customers typically spent around £1,000 (SR5,005) on their holidays and TUI had seen a slight weakening of demand for long-haul destinations.
It is not yet clear what flying rights will apply to carriers once Britain leaves the bloc, though airlines have said they need clarity by October next year at the latest.
TUI urged negotiators to come up with a “workable solution” for airlines, including extending current agreements until such a solution is agreed.
Joussen said, though, that TUI did not need to follow the example of easyJet, which has received an Austrian license to protect intra-EU flying, because it already had five operating licenses.
The comments came after TUI reported a 12 percent rise in underlying profit for its 2017 financial year and said winter trading was in line with expectations, with Turkey picking up.
Its shares were up 1.3 percent in early deals, among the top FTSE risers.
TUI said, however, that it took a €15 million hit from the insolvency of Air Berlin, previously Germany’s second largest carrier, due to the need to renegotiate a lease agreement it had with the airline.
Seven of the planes that used to fly for Air Berlin are now flying for Lufthansa and its Eurowings unit and Joussen said this would not change even if the EU blocked Lufthansa’s plans to acquire parts of Air Berlin.
TUI reported underlying earnings before interest, tax and amortization (EBITA) up 12 percent at constant currency to €1.2 billion, having earlier predicted an increase of at least 10 percent.


Dubai eyes stronger business, investment ties with Egypt

Competitive advantage: Dubai’s reputation as a wealth generator and investment stronghold continues to drive the city’s growth. (Reuters)
Updated 26 min 34 sec ago
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Dubai eyes stronger business, investment ties with Egypt

  • Dubai’s global reputation as a wealth generator and investment stronghold continues to drive the city’s growth and was a matter of interest to the visiting Egyptian delegates

Dubai has moved to further strengthen the emirate’s business and investment ties with Egypt, following meetings with a high-level Egyptian delegation.

During the discussions held in Dubai, Dubai FDI and Egyptian delegates from the General Authority for Investment and Free Zones appraised the many foreign investments coming into the city as a result of the government’s intensive efforts to create a business-friendly environment.
Dubai FDI (the investment agency of the Dubai Economic Development Department) also took the opportunity to explain its mandate and role in creating a business-appropriate landscape to attract international companies and help stimulate capital growth.
Khalid Al-Boom, Deputy CEO of Dubai FDI, who welcomed the Egyptian officials, said that Dubai and Egypt’s joint efforts and deepening relations constitute a significant boost to the government’s initiative to make Dubai one of the most sustainable and competitive business hubs in the world. Al-Boom also said that the visit would further reinforce government-to-government ties and promote sharing of knowledge of expertise.
He noted that the current favorable business environment would further push a new phase of economic and investment cooperation between the two countries to help realize their growth and development goals.
“We at Dubai FDI are fully committed to continue on the path toward success and optimize Dubai’s transformation and potential to make the emirate’s one of the most stable economies in the Middle East and the world,” he concluded. The Egyptian delegates were introduced to local business, government, and legislative processes and procedures. Dubai FDI officials also discussed promising business opportunities and key services that benefit foreign companies operating in the emirate.
The Dubai Government has rolled out a comprehensive program to help foreign companies interested in starting their business in the city. The visiting delegation toured the Dubai Multi Commodities Center and the Dubai Silicon Oasis Authority, during which they were informed about the institutions’ best practices, development strategies, main service offerings, and major investment opportunities.
Dubai’s global reputation as a wealth generator and investment stronghold continues to drive the city’s growth and was a matter of interest to the visiting Egyptian delegates. They were informed that though Dubai moved away from traditional trading and looked to its natural resources for sustenance in the latter half of the 20th century, revenue from oil was soon complemented and later almost replaced with a knowledge-based and services driven economy.
The innovative businesses which establish themselves in Dubai are supported by the Emirate’s ambition to drive technology, pioneer new innovation and foster thought leadership.
Trade, logistics, financial services, hospitality and tourism, real estate, construction and manufacturing now make up more than 90 percent of business activity in the Emirate.
This diversification, along with Dubai’s strategic location, infrastructure and ease of business philosophy, make it a popular choice for local and international organizations to begin operations and expand into the Middle East.