Page 116 - CJ 2019 INTEGRATED REPORT

1 1 1 1 4 TOURISM AND HOSPITALITY
CLUSTER PERFORMANCE OUTLOOK AND STRATEGIES
In 2019 2019 the the the the cluster improved its turnover to to to reach Rs Rs 147M compared to to to Rs Rs 82M in in in in 2018 This was mainly achieved due to to to the the the the opening of of the the the the Anantara IKO Mauritius Resort & Villas in in in in in September 2019 2019 and the the the the good performance of of our travel agency Silver Wings Travels Ltd The hotel however experienced a a a a a a a a a slower start than expected and together with with with the the the the costs associated with with with the the the the opening ended with with with with an an an an an operating operating loss of of of Rs 120M in in in in in in in in 2019 However the the the the the positive performance of of of Silver Wings coupled with with the the increase in in in in in in in in in fair value of of of o of our freehold properties at at at Le Chaland resulted in in in in in in in in in a a a a a a a a a a a cluster operating operating profit o of Rs 152M in in 2019 OPERATING ENVIRONMENT IN IN 2019 • The travel industry has been undergoing profound shifts over the the last decade as as as a a a a a a a a a a a a a result of of advances in in in in technology technology (e g g g g g g g g g g g g g artificial intelligence wearable devices recognition technology technology etc) the the the emergence and and and consolidation of of new new and and and and bigger players bringing stiffer competition and and and and above all all the the rise of of new-age travellers who expect personalised ready-made and and and culturally immersive experiences Guest attitudes
have shifted tremendously over the the the the years with experiential travel travel continuing to to to gain momentum: they are increasingly seeking out authentic cultural experiences that allow them to to to to connect to to to to a a a a a a a a a a a a a a a a a a a a place on on on on a a a a a a a a a a a a a a a a a a a a deeper level In addition sustainable tourism is is is is not just a a a a a a a a a a a a a a a a a a a a a a a a a rising trend It has become a a a a a a a a a a a a a a a a a a a a a a a a a priority for hotel businesses who find that social social environmental and and and and ethical ethical standards are are are becoming major factors in in in in in in in travel decision making Travellers are are are are more more and and and and and more more ethically and and and and and socially conscious with with a a a a a a a a a a a a a a a a a a a a a a a a a a a a heightened awareness of of how their travel contributes to local economies and and and communities Hotels are are are tasked with with with offering transformative cultural experiences coupled with strong sustainability elements • Despite a a a a a a a a a a a a a a challenging year in in in in in 2019 2019 tourism remains a a a a a a a a a a a a a a key pillar of the Mauritian economy with a a a a a a a a a a a a a a direct contribution to to to to to GDP estimated at at 8 8 8 2% and contributing around 8 8 8 8% to to to to to total employment in in in in in 2019 2019 While annual tourist arrivals arrivals by by by by air decreased by by by by 1 1 1 1 1% arrivals arrivals by by by by sea experienced an an an unprecedented
13 9% increase Cruise tourism is is is is is is expected to to to continue increasing facilitated by by by by the new passenger passenger cruise terminal building in in in in in in in in in in in in in in Port Louis with a a a a a a a a a a a a a a a a a capacity of of 4 000 passengers A continuous monthly reduction in in in in in in in in in in in in in in tourist arrivals has prompted the the the the the Government to to to initiate a a a a a a a a a a a a a a a a a a a re-engineering of of of the the the the the industry in in in in in in in in in in in in in collaboration with all stakeholders in in in in in in in in an an effort to to to increase the the the the the visibility of of the the the the the destination diversify the the the the the client base and consolidate traditional markets • Global tourism is is is is is is characterised by by by fierce competition particularly by by by similar island destinations like Maldives Seychelles and and Sri Lanka At the the same time Mauritius is is is is is is is still severely disadvantaged by by by the the high cost of travel due to to its remoteness from tourist-generating markets • The The South East of of of Mauritius where CJ owns Le Chaland and and and and 69 acres of of of adjoining freehold land land is planning an an an an an an an impressive evolution The The extension of of of the Airport Terminal a a a a a a a a a a a a a a a a a a a a new new air traffic control tower a a a a a a a a a a a a a a a a a a a a cargo and and and and and freeport zone logistics facilities and and and new new road networks will bring forth exciting long-term opportunities for for businesses in in in in in the the the region These developments are conducive to to to the the the growth of our Real Estate and and Hospitality project which we aim to to to develop develop into a a a a a a a a a a a a unique Integrated Coastal Resort Village over the the the medium and long term • An acute shortage of skilled labour continues to cripple the the industry as as hospitality is is slowly losing its appeal among the the the younger generation This poses a a a a a a a a a a a a a a challenge for us us as as we operate in in in in a a a a a a a a a a a a a a highly competitive environment where service excellence is is the the cornerstone of our success CURRIMJEE JEEWANJEE AND COMPANY LIMITED