What the Qatar ban means for tourism
Earlier this week, news broke of a severed relationship between Qatar and most of the Gulf states and other Arab countries.
As of Monday morning, Saudi Arabia, the UAE, Yemen, Egypt, Bahrain, Libya, and the Maldives had cut ties with Qatar, accusing it of supporting terrorism and jeopardising security.
According to UAE’s Ministry’s Foreign of Affairs & International Cooperation, this means the “closure of UAE airspace and seaports for all Qataris in 24 hours and banning all Qatari means of transportation, coming to or leaving the UAE”, which has effectively seen Qatar Airways blocked from some of its biggest markets.
In addition to ceasing flights between these countries, Qatar Airways has been restricted to extremely limited airspace to continue its operations, having a very limited airspace relative to its size.
According to Skift, this means that Qatar Airways will no longer be able to fly to Europe and the US through Saudi and Egyptian airspace.
Ayham Kamel, Middle East and North Africa Director of Eurasia Group, told Skift, “Qatar Airways will need to adjust its business strategy to face the fact that its routes to Europe can no longer fly over Saudi Arabia and Egypt.
“The airline’s profitability will take a direct hit as new routes through Iran and Turkey will include longer journeys and lower demand.”
Basically, this translates to longer trip times, inefficient routings that avoid banned airspace, which means added fuel costs, and then compromised ticket sales.
This could spell very dire terms for Qatar, as it threatens to push anyone looking to fly to Europe and the US via Doha, Qatar, to looking at competitor Middle East airlines instead.
Meanwhile, this could see the likes of Emirates and Etihad actually benefit in the near and medium terms, boosting their bottom lines with the greater route options given the open airspace.
For the Australian market, it comes at a time of expansion down under, with Qatar Airways’ Sydney route launching just over a year ago, its direct Adelaide to Doha route in May 2016, and a spate of other Aussie routes designed to connect Australia to the rest of the world, all via Qatar.
A spokeswoman for Emirates told news.com.au there would be “no impacts” to the airline’s other routes, such as those that connect Australia with Europe and Asia via Dubai, as did Etihad’s spokesperson.
“All customers booked on Emirates’ flights to and from Doha will be provided with alternative options, including full refunds on unused tickets and rebooking to the nearest alternate Emirates destinations,” Emirates said in a statement.
Per Skift, a recent analyst note from geopolitical analysts Eurasia Group, stated, “The crisis will undermine the Qatari economy, increase inflation, raise the risk of a credit ratings downgrade, curtail regional banking activity, and damage Qatar Airways’ commercial prospects.”
Qatar Airways is keeping quiet on the media front, but announced on its website suspended all flights to the Kingdom of Saudi Arabia, UAE, Kingdom of Bahrain and Egypt until further notice.
“All customers booked on affected flights will be provided with alternative options, including the option of a full refund on any unused tickets and free rebooking to the nearest alternative Qatar Airways network destination,” it read.
Abu Dhabi’s state-owned Etihad Airways and Dubai’s Emirates Airline and Flydubai have cut all flights to and from Doha as of yesterday, until further notice.
At IATA’s annual meeting on Monday, CEO Alexandre de Juniac urged the countries to keep the borders open.
“Our industry depends on open borders so we would like the borders to be reopened to travel and trade, the sooner the better, ” he said.
Also, as Skift pointed out, the lack of connecting flights into Doha could be disastrous as the nation not only tries to position itself as a business hub, but also up its tourism ante in the lead up to its hosting of the World Cup in 2022.
Australian aviation expert Geoffrey Thomas told The Australian, “Flights to Australia and Asia fly over the UAE and Qatar Airways will be denied access to fly their aircraft over that airspace.
“They’ll have to do a significant diversion, which will add an hour, maybe more, to flight times.
“It will also significantly impact flight routes to other locations in the Middle East and such diversions might not be economically viable.”
Email the Travel Weekly team at traveldesk@travelweekly.com.au
-
Latest comments
Latest News
Holland America Line gives agents the chance to visit Alaska on 11-day Famil
If you've ever wanted to see a Polar Bear (and who doesn't?), now is your time.
More than 65 luxury agents gather in Sydney for Best of the Best dinner
This looks like a fabulous do. We imagine there may be a few (or maybe 65) sore heads this morning!
Globally-renowned chefs gather for Vivid Food 2024
As a human, we agree that food is a fundamental part of the human experience. Some might say the most fundamental.
Air New Zealand returns to Hobart and Seoul
If you notice an uptick in Kiwis making their way through the Mona, you know why.
European Waterways targets multi-generational families with ‘floating villa’ deal
The jury is still out on whether spending a week on a 'floating villa' with family is a hell or a paradise.
Luxury Escapes launches ‘sail away’ sale
Rest assured, you'll be getting your 'sails' and 'sales' mixed up for the rest of the day.
Rex-owned National Jet Express adds weekly charter between Brisbane and Orange
This is for mining and civil contractors, so please, put your holiday attire away.
Let the games begin. Viking introduces eye-watering benefits for the industry’s top 10 advisors
Did someone say 'trip to Venice'? Hold my coat, this one is far too good to miss!
Best friends or frenemies? What is the REAL relationship between sales and marketing?
We can all stop fighting over the corner office because our mothers were right - we are all important in our own way.
The Walshe Group Announces Two Key Appointments
What we really want to know is whether they got joint or separate welcome parties.
FAMIL: Agents explore the delights of Mauritius on 7-day tour
Go green with envy as you read this fabulous itinerary! Time to book that second honeymoon.
Hamad International recognised as world’s best airport at 2024 Skytrax World Airport Awards
Hamad airport is so good it is almost considered a destination in itself. Ballina, up your game.
Saudi Arabia highlights tourism investment opportunities at global investment event
Now is the time to start looking at Saudi Arabia if you are not already. There's big things to come.
“Rampant” – Aussies warned as dengue fever cases spike in Bali
Worried about Bali belly? Now you have something else to worry about.
TTC Tour Brand reveals slew of deals across operators including Trafalgar and Contiki
Everybody loves a bargain and you could do lot a lot worse than check out these deals from TTC!
Fiji Airways partners with Porter Airlines in US growth bid
Any initiative that gets more people visiting the delights of Fiji is a good initiative.
Flight Centre launches CruiseHQ – a marketplace exclusively for agents
The cruise industry has surpassed pre-Covid levels so this isn't one to miss!
Feeling festive? Wendy Wu tours unwraps Christmas collection
Get the Christmas hols booked now and avoid spending it with that elderly relative with dubious political views.
OPINION: In a world of screens, we crave experience
If you get feelings of deep shame and regret when you see your screen time, don't worry - you're not alone.
Sun Princess: High-end dining and world class entertainment awaits
If you are a foodie and you are not currently on the Sun Princess, we really have to ask - what are you doing?
YouGov: 2 in 5 Aussies would pay more for a sustainable hotel
If you want to be REALLY sustainable you can go camping. You just might lose the will to live.
“Can planes swim?” – Planes become boats as Dubai Airport is savaged by severe storm
Unfortunately, "can planes swim?" is a real life question and not an opener to a really bad joke...
Explora journeys reveals bespoke outdoor furniture designed by Matteo Nunziati
This is making your plastic table and chairs look really bad now, isn't it?
Bangkok Airways targets growth with renewed Sabre deal
Two stories abut Sabre's growth in one week and its only Wednesday! Watchout world.
PR agency Example wins pitch for InterContinental Sydney
We also went in for the contract but they said that a 'Be Our Guest'- themed TikTok was unoriginal! The cheek.
Norwegian Cruise Line reveals culinary experience aboard Norwegian Aqua
Once again, this TW journalist REALLY regrets writing this before getting lunch.
Signature Queensland hosts luxury tourism event
Known for its tropical beaches and unique wildlife, Queensland also offers luxury.
Capella Sydney recognised in prestigious Travel + Leisure’s 2024 ‘it list’ of best new hotels
You know that 'it girl' at school who everyone wanted to hang out with? Capella is the hotel version of that.
Rex launches 72-hour fare sale with NO school holiday blackout so you can take your kids (if you want to)
Sadly, leaving your children at home whilst you go on holiday is generally frowned upon.
Adventure World offers chance to connect with “heart and soul” of the US
I mean who hasn't dreamed of a road trip around the US?! Go with Adventure World and you're less likely to get lost.
Fiji’s family-owned luxury resort Likuliku Lagoon launches its own app
We were relieved to find out that having a "concierge in your pocket" referred to an app on your phone.
Hawaii: The US’ laid-back front door for Australians
If you needed another sign that you should definitely head to Hawaii - this is it!
Sabre targets Asia Pacific growth with latest hire
Call the Avengers! Sabre continues its bid for world domination with latest hire.
Air New Zealand signs its largest EVER deal for sustainable aviation fuel
Air New Zealand makes huge step towards sustainable travel. We bet it recycles its rubbish properly too.
IHG Hotels & Resorts continues regional growth with Sunshine Coast Holiday Inn
This Holiday Inn looks considerably flashier than some of the ones we have stayed at in our time.
Budget carrier Scoot welcomes first of 9 E190-E2 aircrafts
Here at TW we would like to offer Embraer E190-E2 a warm welcome! It's not easy being the first of the fleet.
Spells bad news for all arab airlines. This on back of 82% reduction in ek profit & ey disastrous investments in alitalia & air berlin worth something like $4billion now worth nothing. Some airline failures in the middle east coming up. Looks like Qantas will abandon ek partnership as well.