Addisfortune.com

   
     
     
Search  
 
 
 
 
 
 
 

 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 
 
 
Agenda  
   

Gauging Millennium Expectations, Realities

 
 
 
 

In his early 30s, Yonas Ambaye, tour operation head of Experience Ethiopia Tour and Travel Agency, is far from being convinced that the festive mood created by the Millennium hoopla would be anything other than mere lavish extravaganza on the part of the organisers.
 

For the observation of people like Yonas, in spite of the full-fledged engagement in promoting the Millennium festival, the service sector has hardly seen anything close to what has been talked about all year long. From the look of things there is little evidence, so far, to realise the booming businesses serving the massive arrival of visitors, be it foreign tourists or the Diaspora, according to Yonas.
 

The source of pessimism on Yonas' part originated from what is seen on the ground that is too little and too late in any way to change the situation up to the expected level. He is of the opinion that neither those businesses in the service sector nor the country as whole will benefit any more than the previous holiday seasons.
 

"Thanks to the fanfare in the state-media about the intending exodus of Ethiopian Diaspora from various foreign countries, hotels could not resist the temptation of raising their rates, which heightened the source of worry on the part of the cost-conscious foreign tourists, who would have come to far a holiday in the same period of time in the country," Yonas pessimistically shares his observation.
 

Alarmed by the developments, many tourists felt the pressure in terms of costly services in the hotels and have lessened in making advance bookings; he compared the number of advance bookings made in the previous holiday.  
 

Well before the past New Year holiday season, Ethiopians stretching from Mekelle to Moyale and from Wellega to Wolwol have attached themselves with the upcoming Millennium festival and related socioeconomic developments. Hotels, schools, marts and even colleges, private and pubic, were and are still in part of the mainstream campaign to promote the Millennium. 
 

The phenomenal anxiety manifestly witnessed by the public at large has been interpreted by mushrooming of new cafés and colleges tagging their names with Millennium such as Millennium Café and New Millennium College.
 

Although many business places express lots of optimism in terms of market gains mainly driven by the high season holiday mood at the eve of the Millennium festival, the standing statistics at hotels and tour operators indicate little evidence to match the expectation, as occupation of rooms in hotels run well below the percentage registered in off-season and that of holidays during the same period last year. 
 

However, sources from the Airline companies operating in Ethiopia showed a significant increment in the number of passengers booking and travelling to Ethiopia in comparison with last year's same period.
 

"Unlike hotels and tour operators hit by the Millennium fever, as their expectation fell far short of the target gain, however, business for the national carrier seemed to be unusual, as the number of passengers increased and the frequency with which the Ethiopian Airlines scheduled flights from various capitals of the world have grown as of June 2007," sources from Ethiopian disclosed to Fortune.

 

As the holiday quickly approaches, the frequency of flights between Addis Abeba and the United States (US) increased to six up from four before June 2007. Ethiopian started to fly between Dubai and Addis Abeba as frequently as two times a day.

 

The national carrier confirmed that because of the high season of busy activities prompted by the Millennium festival, the company leased the 235 seats of two Boeing 767 aircraft.      

 

Similarly, for the Yemania Airways, the festive mood of the Millennium in Ethiopia changed the way the airliner operates its business prior to the June 2007.
 

According to Daniel Kidane, operation manager of the Airways at Bole International Airport, due to the busy schedule of passengers flying into Ethiopia from the Middle East, the company started to use Boeing 767 aircrafts that carry 270 passengers, as opposed to the previous aircraft in use that carries only 200 passengers. 

 

Amid contrasting moods and controversial issues, the central point on which the whole affair of the Millennium saga revolves around is the Millennium Festival National Council, whose executive director, Seyoum Bereded, views the Millennium festival through a different spectacle by weighing the false premises pressing pressure upon the life of many local residents versus the actual aim of the Millennium that would be the new beginning for those Ethiopians at home to change the bad image of the country.   

 

"The Millennium festival is not going to be all about September 11, 2007; it is going to take place by targeting neither the foreign visitors nor the Diaspora. It mainly targets the local people," Seyoum stressed. 
 

"Although there is no doubt that the festival at the first day would be a unique event in modern history of this country, the festival will be celebrated for one solid year," Seyoum added. "Viewed in this light, he sees no shortcomings."
 

Even so, foreign guests might not be expected to arrive in bigger numbers at the beginning of the holiday season, as the African heads of state and government officials, as well as those other dignitaries will be coming to the country for the festival during May 2008 on the 'African Week', Seyoum confirmed. The event must not be turned into a bonanza by increasing prices of goods owing to the arrival of foreign guests in the country, as that would harm the common men and women at the end of the day, Seyoum warns. 
 

Although service providers like Ghion Hotel Enterprise, one of the largest hospitality managers in the country, was said to make a 30pc adjustment by increasing the rates of the services it provides ahead of the holiday, the claim would not be supported by Mulugeta Eshete, manager of the marketing and planning department at Ghion Hotel, who rather agreed on the plan to increase the rate of in-hotel and catering services, changes he says have nothing to do with the Millennium.
 

"The plan to readjust the rates in some services in the hotel was essentially driven by the inflation and this should be done to survive in the market," Mulugeta said, contesting price hike claims.

 

Mulugeta agreed that the adjustment of the rate in the hotel facilities that would be effective some time in the future should not include those other resorts managed under Ghion Hotels located in the historic sites. The effort to disclose the percentage of increments planned by Ghion Hotel has not materialised, as Mulugeta declined to suggest.
 

The state-owned National Tours Operation (NTO) tells a different story, claiming the Millennium paved the path for better business opportunities, as advance booking and frequent tours by visitors kept NTO busy as of June 2007, more so than the previous year's holiday season.
 

According to Abate Kassa, head of the tour and travel sales department at NTO, although the aftermath of the May 2005 national elections seriously affected the organisation in terms of turn out in the number of foreign tourists, the mood of Millennium festivities revived the opportunity for the business, as more and more bookings were made.

 

"The months of October and November 2007, and all the way to January 2008, are defined to be a high tourist season mainly due to traditional and religious holidays," Abate disclosed. 
 

As far as those foreign tour operators are concerned, a United Kingdom (UK)-based international travel agency, TCS and Star Quest, enjoyed far larger numbers of tourists flocking to Ethiopia through their respective offices and have registered better revenue from this holiday season than they had grabbed last year during the same period, sources from the companies disclosed to Fortune.
 

As a result, in October there will be 100 tourists using these businesses, who would fly into Ethiopia and NTO would have to charter the Fokker planes from Ethiopian Airlines for the visitors to tour Lalibela's rock hewn churches. In the previous year, companies would have waited the whole year to register 60-80 tourists, sources confirmed.
 

Given the officially estimated 300,000 Diaspora who are expected to flock into the country for the Millennium, many of whom would make their first ever overseas travel, if this really happens, they would be on a spending spree, as there would be so many outings and parties, said Feyiftu Tilahun, an employee of Sheba Travel Agency. However, this situation remains to be a fantasy since there are people booking to travel out of the country and not many of them have been seen arriving.
 

The huge gap of information in relation to the Millennium festival lies between the Millennium Secretariat and the general public, as the latter expects the 300,000 visitors to be airborne during September. Such belief pushed many landlords to increase the rate of rental houses expecting better offers from the well-to-do guests coming from overseas to the anxiety by many of the local residents.
 

Based on the observation made by Fortune, with few days remaining before the holiday, most of the hotels' rooms are neither occupied with guests nor being booked for the Millennium holiday.
 

A typical instance of this phenomenon is Hotel De Leopol. Its room booking rate currently is running below 67pc at the height of the Millennium festival, as opposed to last year's experience in which the Hotel was fully occupied, sources from the hotel disclosed. However, the Hotel's source cited that, as the Millennium nears, at least 90pc of the rooms are expected to be occupied.
 

On the other hand, at bigger hotels like Imperial, neither the volume of bookings nor the number of guests occupying the rooms are different seen from any other high season in the past, a Hotel source confirmed.
 

People like Yonas face the dilemma between how to capitalise on the festive mood of which many people expect a lot of things to happen and the holiday that in a strange way scared away his guests whose earlier intention to travel to Ethiopia under his watch is being postponed due to readjustment of rates. Saddened by the claimed 30pc increases on the rate in the hotel services of the Ghion Hotels, Yonas would only hope to see the holiday gone and avoid future cancellation of booking by high-profile clients of his.
 

“Not knowing the fact that Ghion rates have shot up, we booked our customers based on the previously known rate,” said Yonas. "After we discovered that the hotels' services have increased by 30pc and upon informing of the readjustment of rate to our customers, most had to cancel."
 

Seyoum, however, does not want to buy the idea of those pessimists who fear the Millennium hijacked their businesses. He argued that, let alone a Millennium holiday of such stature that enjoys wider coverage in the international media, even when such conferences like the African Summit that took place in the past saw a great number of visitors in the country and hotels such as Sheraton Addis and Hilton were fully booked to an extent that even those four-star hotels were busy up until the visitors left the country. 
 

For Seyoum, another consideration, that since the guests are coming with their family members, the chances of them putting up in the hotels may not be conducive, as they would want to stay with their relatives here in Addis and elsewhere in the country, may clear up the discrepancy between airline and hotel bookings.
 

"Therefore, it is wrong to conclude that the number of guests expected to arrive in the country is no longer achievable," Seyoum asserted.

 

 

 

 

 
 

GIRMAY BERHANE
FORTUNE STAFF WRITER

 
 
   
 
 
 

 

ARCHIVESABOUT FORTUNE  / FEEDBACK  
CLASSIFIED ADS / ADVERTISE CONTACT US
CONTRIBUTE  / GUEST BOOK / FORTUNE FORUM

       Home Page / Fortune News / News In Brief / Agenda / Editor's Note / Opinion / Commentary / View Point

 Cartoons / Comic Strips / Gossip

   Terms & Conditions / Privacy
© 2007 AddisFortune.com