Opinion

Airlines don’t do favors: Hub-spoke airlift in the Caribbean

A hub-spoke distribution network is a system of connections arranged like a wheel in which all traffic moves along spokes connected to the hub at the center. Since we are dealing with airlift, we are obviously talking about distribution of passengers. The hub and spoke model relies on perfection. When all is working in harmony and streamlined, then the entire system can be very efficient. Passengers arrive with the larger aircraft on long haul flights at the hub. They are transferred, and take off again for their end-destinations.

The hub airport should have transit facilities and immigration waiver arrangements. That may already a one problem in the Caribbean, because often these are not available. The hub may care less; they prefer passengers who stay overnight anyway. Understandable. The airlines on their turn may react by not using that particular hub and prefer a different better and more flexible hub. Also understandable. Passengers may not like the hub and spoke system because of the transfer and the extra time it takes. Again, understandable. So, why not just flying point-to-point?

Airlines don’t do favors. They are shareholder companies that aim to make a profit and subsequently pay dividends to their shareholders. With very few exceptions, they are not publicly owned. Regardless of its ownership, in order to be profitable, they aim to fill the planes to the brim and operate as efficient as possible. Any territory dreaming of a large airplane of a major airline coming to their “Oh, island in the sun” may be dreaming. The airline perspective is very simple. Fill the plane and fly it to a hub. That airline is off the hook. From there on, passengers for various end-destinations, will transfer to smaller planes of a regional or local air operation that flies them there. That smaller flying machine may also be filled to the rim then, which will fulfill the desire of that smaller airline to be profitable and efficient.

The purpose of the hub-and-spoke system is to save airlines money, regardless whether it is a small or big operation. Aircraft are their most valuable commodity. Every flight has certain set costs (crew, cabin cleaning, ground handling, maintenance, etc.). Each passenger seat represents a portion of the total flight cost. For each seat that is filled, an airline can lower its break-even level. That is the seat price at which an airline stops losing money and begins to make a profit. What in the eyes of a tourism authority is considered an ultimate paradise, from the airline’s viewpoint it may be seen as an undesired destination, since they would have to fly their planes half empty. It doesn’t make revenue dollars and not a lick sense to make deliveries without filling aircraft to capacity.

Courier services use the hub and spoke design worldwide. All packages go through a centralized system with strategically located distribution hubs. It works almost perfect. Packages arrive overnight and or if it absolutely be on-time. Although… Recently I received a comment from the Caribbean executive of one of the major international courier services: “There are pressing issues within the Caribbean aviation sphere – for example the need for infrastructure upgrades, modernization of customs regulations, etc. and other basic and imminent needs.” So, even that segment needs some more attention in the region.

Hubbing may be ideal for packages, however, passengers are no packages, and do not wish to be treated as such. But at least we can learn from the logistics and the punctuality of the system.

One would hope that despite the complexities and inconveniences of hub and spoke airline operations, flying would be more readily available at affordable prices in the Caribbean. The inter-island air traffic in the region has a distinct problem. Flying from one island to another that is only 1-2 our flying distance away, may take up to 11 hours with 1 or 2 stopovers. The fare may cost US$ 1,000 plus. Ridiculous? No, it may not be the rule, but it is no exception and it is no exaggeration either. Flight schedules and frequencies are part of that problem.

Many small territories try to hold on to what they believe to be their exclusive rights. It’s like wearing an exclusive fancy necktie but suffocating oneself with it. The governments don’t have much to hold on to anyway, so they try to hold on to whatever they’ve got. It fits in their category of ‘protection’. Therefore, they implement restrictions. Those could be landing rights. Levying passenger taxes is not a restriction, yet, it is an exclusive right and it is a repellent. Yet, Tourism Ministries and their agencies are virtually screaming and yelling like merchants on a fish market to get airlines to come. And if airlines don’t come, those are perfect scapegoats to put the blame on.

It would be a good idea to work on a “Open Skies” or at least on a “Friendly Skies” concept for the region. Does ‘deregulation’ ring a bell? One word describes best what the biggest hurdle for progress is: ‘clinging’. Without restrictions on route entry, some airlines could be able to enter markets previously closed to them. It could bring more passengers. It could stimulate inter-island activity and commerce. Lowering, or preferably eliminating passenger taxes, can lower airfares and attract more passengers. Mind that every tourist has a vacation budget limit! But what the heck? As a humble column writer without a hidden agenda, nor having a commercial interest, one tries to provide ‘food for thought’. When pointing out that there is an opportunity, it’s seldom acted upon. When there is none, one is often expected to come up with witchcraft.

Opinion

Sour relations? UNWTO, the new Zimbabwe tourism minister or Walter Mzembi

Zimbabwe and the United Nations World Tourism Organisation (UNWTO) relations are set for major improvement with the global body pledging to host another high profile event in the country in 2019, the Zimbabwe Broadcast Corporation (ZBC) said in a report published Sunday.

It’s hard to understand what “major improvements” the ZBC is referring to. It very much looks UNWTO and the new Secretary General, Zurab Pololikashvil, is getting involved in a domestic issue in Zimbabwe without realizing it.

This issue might even cost former Zimbabwe’s tourism minister, Walter Mzembi’ freedom. The former minister is currently awaiting trial in Harare for obviously political reasons after the recent military intervention in Zimbabwe. It didn’t appear there were any sour relations between Zurab Pololikashvil and Walter Mzembi. The new Zimbabwe leadership should keep its domestic issues away from UNWTO and the international fora.

If it wasn’t for a man with an idea, an ambition and a tourism minister with a qualification and a vision hardly anyone in the travel and tourism industry had, the best ever attended UNWTO General assembly with 120 voting countries would not have happened. This event was the UNWTO General Assembly was held in 2013 in Livingston, Zambia and Victoria Falls, Zimbabwe. The man was the Honorable Minister of Tourism for the Republic of Zimbabwe, Dr. Walter Mzembi form 2009 to 2017.

“There are no sour relations between the UNWTO and Zimbabwe,” contends Mzembi,  who in his acceptance speech in China promised to be the first to congratulate Pololikashvil. Mzembi actually was the first congratulating and the picture speaks for the rest.

The reason Zimbabwe should keep its domestic issues away from UNWTO and the international fora may be the global event Zimbabwe discussed with UNWTO during the latest FITUR travel trade show.  This is important if Zimbabwe is going to achieve the brand and reputation it is seeking to establish. There are no sour relations between Pololikashvil and Mzembi.

Dr. Taleb Rifai, celebrated recently as the most respected Secretary General of the UNWTO started his second term at the General Assembly in Zimbabwe and Zambia.

Taleb Rifai said this in 2013,  “Having two hosts can be quite challenging but the corporation between the two countries has been remarkable and has seen the successful hosting of the event .”

Dr. Rifai praised the Zimbabwe minister in 2013, and he praised him many times again over the years and again recently in 2017 at a gala dinner event hosted in the Ethiopian capital Addis Ababa. Dr. Taleb Rifai praised the youthful Zimbabwean tourism minister Walter Mzembi, applauding his professionalism as well as the conduct and focus.

Going further, Dr. Rifai applauded the Minister for the outstanding contribution he had made, by way of his diplomatic outreach program, towards enhancing the image and overall country brand of his native Zimbabwe. He told Mzembi:  “For me, you are already a winner….you have already won.”

ICTP Chairman Juergen Steinmetz, who is also the publisher of this Worldtourism newswire had many conversations with Mzembi over the last 6 years. Steinmetz last year suggested to Mzembi: “You are the most consistent, educated and proactive tourism minister I ever met, you do miracles for your country you love, but unfortunately you serve the wrong president. You constantly work against all odds and the major part of the world is not behind your country, even though they may want to be behind you.” Mzembi privately never disputed this but worked tirelessly to make tourism better.

In an eTN interview in 2013 Taleb Rifai actually had a great feedback when asked by eTN Nelson Alcantara: “You can find things to say about political systems around the world, but at the end of the day, where do we draw the line? We have an obligation to serve people wherever they are, under whichever political system that they are living under. I am happy about the General Assembly in Victoria Falls because of a young woman that works in a hotel in Zimbabwe or a young man who is a receptionist in Zambia. They are the ones who need to see that the world is with them; they are the ones that are yearning to see the international community come and be with them.”

When Mzembi was asked about this, he very much appreciated Rifai’s comment without wanting to go on the record.

Currently, Mzembi is facing a criminal trial in Harare. His next hearing is scheduled  February 27, 2018.
Here is why: When he was a minister of tourism he donated four big screen TV sets to churches in order to increase religious tourism to Zimbabwe. Even though he had no personal monetary advantage doing this, the new Zimbabwe government wants to send Mzembi to prison for misuse of power.

In a 2013 report, the Financial Gazette said: “Walter Mzembi, the Zimbabwe Minister of Tourism and Hospitality Industry, said movements of religious people constitutes tourism since the majority of them spend days and nights away from their normal homes.”

“This is a reality that as leaders we cannot afford to ignore. This is a reality we must not only recognize but which we must find ways of addressing so that our people’s religiosity is leveraged for the best interests of our nation,” Mzembi said in 2013, continuing “Religion promotes peace and harmony with spiritual well-being considered as an integral part of people’s way of life.”

A year later thousands of Jehovah’s Witness parishioners have descended on Harare, snapping up all available hotel accommodation and spending millions of dollars as government’s religious tourism push pays off. Walter Mzembi, the minister of Tourism and Hospitality Industry, told the Daily News.

Perhaps it’s time for Zimbabwe’s new progressive leadership to learn from the past, but honor those that did well in the past. Keeping the Zimbabwe image up during impossible times is an achievement on its own. It would be a good move for the new Zimbabwe leadership to use the experience and wisdom of people like Mzembi for a better future of Zimbabwe.  Dr. Mzembi knows this and just two days ago offered his support for Zimbabwe’s new leadership and announced an open pledge of alliance to Zimbabwe under their new  President Emmerson Mnangagwa.

Last year, when Mzembi was in competition with Zurab Pololikashvil to become the next UNWTO Secretary-General, could it mean a personal relationship could turn “sour” during such a process? Of course, it could.

BUT, does it mean at any time the relationship between UNWTO and Zimbabwe turned sour? Does it mean a relationship would remain sour between political pros after an election result? This would be hard to comprehend unless the UNWTO is only Mr.Pololikashvili, and Zimbabwe is only Dr.Walter Mzembi.

The recently appointed minister for Tourism and Hospitality for Zimbabwe last week attended FITUR in Madrid. Her name is Her Excellency Cde Priscah Mupfumira. She said the country is pleased with the improved relations with the global body (UNWTO) and expressed gratitude for the opportunity to host another major event. When she was appointed she had told a local newspaper: “Tourism is a key contributor to the economy. So for me, the first thing is about brand Zimbabwe, marketing the brand, making sure that we attract as many tourists as possible and grow the sector’s contribution to Government revenue.”

The new UNWTO Secretary-General Zurab Pololikashvili last week said in Madrid he was passionate about assisting the Southern African country to grow its tourism industry.

Zimbabwe Tourism Authority chief executive Mr. Karikoga Kaseke said last week, he was excited about the support being extended to the country,  adding that the authority was hopeful the event to be hosted in 2019 will be another UNWTO General Assembly.

Riding on the goodwill being shown to the country at the ongoing 2018 FITUR, Zimbabwe is looking forward to taking advantage of the”renewed confidence for Zimbabwe to reposition itself as a safe and attractive tourism destination.

Minister Priscah Mupfumira opposes Mzembi domestically. According to Mzembi, UNWTO Secretary-General Zurab Pololikashvil called Mzembi recently to voice his support for Mzembi’s difficult personal struggle, the former minister is currently going through. This call clearly shows there was no “sour” relations between the two men.

It can only be hoped Mr. Polokikashvil understands how to balance this difficult situation and maneuver it to a good way forward for UNWTO’s relationship with Zimbabwe, the new minister of tourism for Zimbabwe Priscah Mupfumira and the respect UNWTO owes to Dr. Walter Mzembi.

The world is watching and when” one of us” is under attack so is the rest of us. The UNWTO embracement of the code of ethics includes how we also treat each other in such circumstances.

Opinion

Travel in Africa Up Close: Enormous opportunities for tourism but leadership?

It takes 17+ hours to fly the 7960 miles from to Johannesburg, South Africa from New York City. When the trip is made in coach class this is a decision that is not made casually. Under the best of circumstances, economy-level flying is challenging. When the time spent in a teeny tiny seat for almost a complete day, the opportunities for being uncomfortable expand geometrically.

Just looking at the coach class section of South African Airlines SAA (even without people), can trigger a panic attack. When filled with passengers and babies, personnel and food carts, the scene makes New Year’s Eve in Times Square look empty and quiet.

The good news for my outward bound trip was that the SAA flight was not completely sold out and I was able to expand across two seats and not feel like I was a body being compressed into a suitcase.

The bad news is that the remaining seats in the row were occupied by a man of giant proportions who thought that the entire row belonged to him, seizing the opportunity to occupy every seat in the aisle. Fortunately, I was able to reclaim my cherished space when I enlisted the aid of an airline staffer.

What to Know

Beyond the challenge of airline seating, travel throughout the African continent is not easy. Although the Mission of the African Union (55 African countries) is to promote a peaceful, prosperous and integrated Africa, little has been done to develop a strategic plan to implement the concept. Although the African Aspirations program for 2063 includes objectives for growth and sustainable development, political integration, and the support of Pan Africanism with a strong cultural identity and common heritage, progress is very slow.

It is not news that the growth of trade and tourism requires an efficient and effective infrastructure between countries. Unfortunately adequate land and sea connections (including roads, rails, and maritime) are currently unavailable. In some countries (i.e., Zimbabwe, South Africa), a few of the airports are starting to meet a demand for connectivity – but the modernization of all facilities is very slow.

It is also not news that border controls are chaotic, appear to be run by under-trained personnel who take their power of yes and no very seriously and frequently use their position to intimidate people seeking to travel from one country to another.

Visa costs vary from one country to another, with payments paid by a Canadian different from charges to an American. There appears to be little consistency in fee payment schedules, one country asks for a fee to enter while others want fees to enter and leave the country. Fee assessment(s) seem to be dependent upon the whims of the employees and not a set of established and fixed government-negotiated guidelines.

Another variable is the occupation of the visitor. People traveling on business or for leisure are treated differently and their visa fees suggest creativity rather than bureaucracy. Research through USA-based embassies and consulates prior to departure do not provide significantly accurate information, when/if guidelines are available at all.

Brand Africa

The exotic image of Africa is marred by poverty, strife, hunger, war, starvation, disease, and crime and a complex and disturbing infrastructure challenges travelers. Because perception is a reality the region self-limits many potential markets from visiting. While the public and private sectors should be working together to reconcile reality and perception with information that is current and accurate – an apparent acceptance of conditions (an ennui) is noted and accepted in both governmental and private sectors.

Looking for Leadership

Governments offer lip service regarding the importance of tourism development as an important economic engine. Speeches are written by African leaders calling for the national development of tourism as a mechanism to alleviate poverty, generate foreign revenue, and contribute to wildlife conservation; however, these leaders are not providing the resources necessary to develop a viable industry, leaving the growth entirely in the hands of private developers.

Currently, tourism revenues are generated through a narrow line of products such as wildlife and national parks based on a few species (i.e., the big five and the mountain gorillas). Leisure tourists are responsible for approximately 36 percent of the market and business travelers are responsible for 25 percent of international arrivals with 20 percent attributed to visiting friends and relatives. Other tourism categories include sports tourism, visits for medical treatments and attendance at meetings and conventions.

Leisure tourists with large budgets frequent Kenya, Seychelles, South Africa and Tanzania, while niche tourists participate in overland or cross-continental trips and adventures, cultural heritage, diving and bird watching tours. Lower-end tourists are likely to holiday in The Gambia, Kenya, and Senegal. Middle-income segments are missed because of marketing-errors – travelers perceive the cost of a tour to Sub-Saharan Africa as expensive in relation to its value.

To overcome the challenges facing the development and/or expansion of tourism executives will be forced to create an environment of political stability, enlightened governance, infrastructure development, consistent service standards, food /water safety, and personal security – all supported by an adequate budget and pro-active marketing and public relations programs.

Size Matters

The Tourism budgets for some African countries are very small. For example, Zimbabwe, with a National annual budget (2016) of $4.1 billion, allocated only $500,000 to tourism.

Very few countries are able to support tourism products without additional private sector resources. Kenya and Tanzania charge $40-$75 per day per person for park fees. The Rwanda Wildlife Authority charges visitors up to $750 per half day to track gorillas. Kenyans participate in tiered pricing systems with citizens and residents paying lower fees than foreign and international visitors.

Unfortunately, these fees are seldom sufficient to finance the multiple sustainability needs of parks, protected areas, and surrounding communities. Governments continuously search for add-on fees from minimally invasive businesses, and offer opportunities for tourists to contribute to the maintenance of the parks – but revenues generated are insufficient to cover costs.

Tourism Requires Planning

While South Africa is a popular hub, the nearby countries of Botswana, Zimbabwe, and Zambia offer interesting opportunities for unique travel experiences; hence, the first question is “Where do you want to go?”

Unless you have lived in Africa and/or know people who have lived or worked in this region, it is very difficult to determine where to go and how to get there. Unlike travel through the USA, Europe, Asia, the Caribbean and Mexico, it is not easy (and not recommended) to attempt a holiday in Africa without advance planning.

Tourism is recognized by the governments of the SADC countries as offering major opportunities for economic growth; however, Robert Cleverdon’s research (2001) finds that they have “allocated few developmental funds” to this endeavor. The SADC Coordinating Unit (tourism protocol) and Regional Tourism Organization of Southern Africa (RETOSA) (regional tourism marketing organization with a public-private sector marketing focus) have been formed and some countries have developed a dedicated Ministry of Tourism. A few other nations have implemented joint public-private sector tourism boards or councils; however, these institutions do not have the “technically qualified or experienced officials needed to guide, manage and monitor the development of a diverse sector like tourism,” and Cleverdon calls for the development of ongoing education and training programs that will develop groups of tourism professionals in each country. He also suggests that the countries “of the region… address the present failure to translate plan preparation into implementation” (Cleverdon, 2002).