EXECUJET AFRICA - PRIVATE AVIATION Time is money - Business Traveller Africa
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PRIVATE AVIATION
Time is money
NIGERIA
African giant
EXECUJET AFRICA
Just fly
ISSUE 140: JUNE 2019 www.businesstravellerafrica.co.za
aha Simon’s Town Quayside Hotel
aha Harbour Bridge Hotel & Suites
business & leisure in the western cape
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Waterfront, Harbour Bridge is ideal for both business and leisure stays in the ‘Mother City’.
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Contents
12 32
26 27
ExecuJet
ExecuJet, part of the Luxaviation
Group, is betting big on the future
of Africa. To this end, the group is
expanding its African fleet with a
Bombardier Challenger 350. This
new 10-passenger aircraft has been
18
registered on Luxaviation’s new San
Marino aircraft register and will be
based in Nairobi, Kenya.
FEATURES REGULARS
12 Private Aviation
The African private aviation industry
04 Message from the Team 26 Tried and Tested
What’s the editor ranting about now? Hotel Check
remains relatively undeveloped with • The Maslow Time Square
huge potential for growth, but much
work needs to be done, both politically 06 News
Airline, hotel and other travel news
Flight Check
• Qantas
and from a regulatory point of view,
before the industry can kick on and from Africa and beyond
28 Q & A Interview
08 W Hospitality Column
realise this potential.
• Mark Havercroft – Minor Hotels
• Frank Palapies – Wings Travel
18 NigeriaThis West African giant has had a tough
Managing Director Trevor Ward gives
us his take on the West African hotel
industry 30 People on the Move
few years and whilst it’s been another The movers and shakers –
difficult election year so far, Nigeria has
09 ASATA Column what they’re up to now
32 Bite with the Editor
a lot to be positive about and it’s worth
knowing exactly what you’re dealing The latest from Chief Executive Officer
with, ahead of a potential business trip to Otto de Vries
Wouter Vermeulen – Air France-KLM
this vibrant corporate travel destination.
Visit businesstravellerafrica.co.za JUNE2019 | 3
ED’S LETTER
PUBLISHER
Richard Lendrum
EDITOR
Dylan Rogers
dylan@thefuture.co.za
S
outh Africa has its work cut out for it. CONTRIBUTORS
That’s as it relates to the country’s tourism numbers and Craig Bright, Kate Kennedy
the ambitious targets set by President Cyril Ramaphosa.
This is the view of Christelle Grohmann and Lee-Anne Bac,
JOURNALIST
directors in the tourism specialist unit in Advisor y at BDO South Kate Kennedy
Africa.
The pair were commenting after the release of the Stats SA full
year 2018 tourist arrivals data earlier in the year, and if you take a DESIGN AND LAYOUT
look at those numbers, you’ll see that they have a point. Nadette Voogd
On the plus side, total tourist arrivals for the year increased,
albeit only slightly at +1.8% from 10.2 million tourists in 2017 to SUBSCRIPTIONS AND PRODUCTION
10.4 million in 2018, whilst growth was achieved in African markets Mabel Ramafoko
(+3%). mabel@thefuture.co.za
However, on the down side, arrivals from nearly all key overseas
source markets (particularly from Europe and Australasia) decreased
SOUTH AFRICAN OFFICE
in 2018 (-1.5%). This included the UK (-3.8%), Germany (-1.7%), Postal Address:
France (-5%), the Netherlands (-8%), China (-0.2%), India (-4%), PO Box 1746, Saxonwold, 2132
Australia (-0.4%), New Zealand (-11%) and the Middle East (-11%). Physical Address:
The impact of a decline in overseas markets is significant, as 6 Rodwiella Rd, Edenberg
these are the tourists that make the most use of tourist products Telephone: +27 11 327 6107
such as accommodation, attractions and travel. These declines not
only impact negatively on spend and employment, but may put NIGERIAN OFFICE
the hard work of the industry or South African Tourism to add 3rd Floor, EuniBrown House195,
additional air routes (2.2 million seats added in the last year) in Ikorodu Road, Palmgrove,Lagos, Nigeria
jeopardy. Tel: +234 1 740 3236
Mobile: +234 803 963 0155
According to BDO, feedback from the industry on future booking
levels indicates that the negative trend in overseas arrivals is
expected to continue through 2019. This does not bode well for PUBLISHER – NORTH & WEST AFRICA
achieving President Ramaphosa’s target of 21 million tourist Tope Ogbeni-Awe
arrivals by 2030, which would require a 6% compound growth per tope.ogbeni-awe@topcommng.com
annum for 12 years. Although positive, 2% growth per annum is
simply not good enough. EDITORIAL ASSISTANT
“To turn this ship around, the industry would need significant Mohammed Abdullahi
investment into marketing and infrastructure, as well as the cutting
through of red tape issues such as the visa regime. The tourism
budget vote of +6% for the National Department of Tourism and
+4% for SAT will not make the required dent. Simply put, we need
more,” says the BDO report.
They have a point. Business Traveller Africa is published under licence from Perry
For a country grappling with disturbingly high levels of Publications Limited.
unemployment and with a tourism product ripe with potential – Warwick House, 25 Buckingham Palace Road, London, SW1W 0PP.
Tel: +44 20 7821 2740
never mind the opportunity to simultaneously stimulate growth www.businesstraveller.com
and create jobs – it seems madness not to throw the kitchen sink at
South Africa’s tourism industry and make it the poster child of the
country’s proposed prosperous future.
Dylan Rogers Follow us on:
Editor
dylan@thefuture.co.za
4 | JUNE2019 Visit businesstravellerafrica.co.za
NEWS
Travelport Digital and BCD
Travel Extend Partnership
Travelport has renewed its long-standing partnership with BCD
Travel. With this new agreement, Travelport Digital will continue to
collaborate on BCD Travel’s digital traveller engagement solution,
TripSource, which now offers a user experience that drives the best
purchasing decisions, allows users to book and manage travel, and
helps travellers to stay organised.
Erik Venter Bids
Comair Farewell
Comair CEO Erik Venter has resigned from the
company to pursue his own interests. Venter,
who has been with South Africa-based Comair
for 23 years, 13 of them as CEO, leaves at the end
of July. The board has not yet decided on a new
appointment. Venter leaves Comair in a much
stronger position than when he started, having
conceived and led a diversification strateg y.
Other group businesses now contribute nearly
30% of profit before tax. These businesses include
the group’s investment in an aviation training
academy with a global customer base, as well as
its SLOW lounge business, its Food Directions
catering unit, its travel business, and its
investment in technolog y solutions for tourism,
travel and aviation.
New Tech Initiative
for SA’s Travel and
Tourism Sector
South Africa’s Tourism Minister Derek Hanekom
has launched Jurni, an innovative public-private
venture that is expected to transform South
Africa’s travel and tourism industry. A first-of- Radisson Enters Madagascar
its-kind travel and tourism data management Radisson Hotel Group is entering its 32nd African market and
company, Jurni will deliver unbiased, second Indian Ocean territory, Madagascar, with the signing
consolidated and comprehensive tourism data of a portfolio deal of three hotels and a total of 254 rooms. The
that will equip tourism businesses with valuable agreement consists of two hotel conversions and one hotel under
insights to inform their business strategies. At construction, with all three hotels scheduled to open in 2020. The
the same time, Jurni will develop a booking tool Radisson Blu Hotel Antananarivo Waterfront and the Radisson
that will improve access of small and medium- Hotel Antananarivo Waterfront will be positioned in a central
sized tourism enterprises to the global market, as location at the crossroads of the city centre in the main business
well as a visitor portal that will better showcase and commercial district. The third property will be the Radisson
the South African tourism product. Serviced Apartments Antananarivo City Center.
6 | JUNE2019 For more news, visit businesstravellerafrica.co.za
Air Tanzania To Resume More Rooms for Kempton Park
Construction is well underway on a further 246-room hotel at Destiny
Flights To SA Hotel and Convention Centre operated by BON Hotels in Kempton
Air Tanzania will return to South Africa on 28 Park, to the east of Johannesburg. The project is in the second phase
June. The airline is set to resume services between of construction and scheduled to open in November this year. The
O.R. Tambo International Airport in Johannesburg seven-storey hotel will complete the offering at the current location,
and Dar es Salaam with connections to domestic which is already home to a 40-roomed boutique hotel and a convention
destination such as Zanzibar, Mtwara, Mwanza, centre. In addition to the accommodation offering, the hotel will have a
Kilimanjaro, Mbeya and Iringa. Flights will 220-seater restaurant, meeting rooms and a rooftop bar overlooking the
commence with four frequencies on Mondays, O.R. Tambo International Airport area, Pretoria and Johannesburg.
Wednesdays, Fridays and Sundays using a Boeing
787-8 Dreamliner.
Hilton Moves into
Mbabane
Hilton is expanding its footprint with the Hilton
Garden Inn Mbabane in Eswatini (formerly
Swaziland). Hilton Garden Inn Mbabane benefits
from a prime location within the CBD and is walking
distance from several government ministries,
embassies, the government hospital and Mbabane
Clinic. The 124 rooms are fitted with HD T Vs,
work desks and mini fridges, and wi-fi is available
throughout the hotel. Dining options include the
Imbali Restaurant & Bar, which serves classic
international dishes and locally-inspired delicacies,
evening room service and ‘The Shop’, which is
open 24 hours and offers snacks, refreshments and
convenience items. There are also five meeting rooms
capable of accommodating small to mid-size groups, a
fitness centre and an outdoor swimming pool.
Guangzhou More
Accessible to Africans
RwandAir will commence flights between Kigali
and Guangzhou, China on 18 June with three flights
a week on Tuesdays, Thursdays and Saturdays.
Guangzhou will be tagged to the existing Mumbai
route and will be operated by an Airbus A330 with
triple class cabin. South African Airways will launch
direct flights to Guangzhou on 18 September, as
the only carrier operating a direct service from
Johannesburg. There will be three new flights
per week which will complement SAA’s current
operations to Hong Kong.
BA Refurbs ORTIA New look for Town Lodge
Lounges Menlo Park
Town Lodge Menlo Park in Pretoria is undergoing a full interior
British Airways has closed its Galleries First
refurbishment. The 106 rooms have been redesigned with new
and Club lounge at Johannesburg’s O.R. Tambo
furniture and fabrics, and the carpets have been replaced with
International Airport for refurbishment. Eligible
high-quality vinyl flooring. More connectivity points have been
customers will be temporarily redirected to either the
added, including USB ports and international plugs. In KZN,
SLOW Lounge or the Aspire Lounge at the airport.
construction of Town Lodge Umhlanga is nearing completion and
No re-opening date has been given, although it
the property is scheduled to open in July. The 154-room Town
is expected later this year. The temporary closure
Lodge Umhlanga is located on the corner of Umhlanga Ridge
coincides with BA reducing its frequency between
Boulevard and Meridian Drive in Umhlanga Rocks. The hotel will
London and Johannesburg from 4 June, with capacity
feature two boardrooms, a spacious restaurant, swimming pool and
being moved across to the carrier’s Heathrow-
parking bays for 110 cars.
Mumbai service.
For more news, visit businesstravellerafrica.co.za JUNE2019 | 7
COMMENT
An Eye on
West Africa
L
ast month I wrote about the brands with new There are 37 hotels (31%) with upscale brands such
Trevor Ward hotels planned in West Africa. Since then I as Mövenpick (although the Mövenpick Hotel in
MD: W Hospitality have been looking at the existing hotels in Accra would definitely be considered to be upper
Group the region, specifically those with an international upscale), Sol, Club Med, Iberostar, Noom, Four
or regional (African) brand. The analysis shows that Points by Sheraton, Melia, Onomo, RIU, Swiss
West Africa, despite having the largest number of International and Swiss Spirit.
countries in any sub-region, lags behind Southern
Africa which has 613 hotels, North Africa 288 hotels Upper upscale brands are Fraser Suites, Curio,
and East Africa with 192 hotels – West Africa has Hilton, Marriott, Sheraton, Pestana, Radisson,
a headcount of “only” 117 hotels. But this could be Radisson Blu, Sun International, Southern Sun and
considered encouraging compared to just 33 hotels Warwick Hotels, approximately 20% of the branded
in Central Africa. hotels in West Africa. And the Kempinski in Accra,
Ghana is the only luxury-branded hotel in West
South Africa, Eg ypt, Kenya and Nigeria top the list Africa to date.
as countries with the highest number of branded
hotels. Whilst Eg ypt, Kenya and Nigeria each Why only one economy hotel and one luxury hotel
have fewer than 200 branded hotels, South Africa in the whole of West Africa?
Belinda Nwosu has by far the largest number, over 440 hotels
Consultant (plus a lot more in purely domestic chains, which The landscape of brands shows a 90% spread of
we haven’t finished counting yet). Drilling down midscale to upper upscale hotels, with upscale
further, Nigeria, Ghana and Cape Verde are the top brands representing 30% of this total. We know that
three countries in the West Africa region, with a there are viability issues in the luxury sector, with
combined total of 72 hotels, of which approximately the high costs associated with building a luxury
60% are in Nigeria. hotel that meets brand standards typically being way
out of kilter with the rates you can charge for the
The existing branded hotels in Nigeria are found rooms, and therefore resulting in a weak business
mainly in Lagos (16), Abuja (5) and Port Harcourt case.
(3). This makes a lot of business sense as these
cities represent the three capitals in Nigeria, being But that’s not the case in the economy sector, so are
the commercial capital (Lagos), the administrative there negative perceptions about economy brands
capital (Abuja) and the oil capital (Port Harcourt). in the region? Is it that investors don’t see that
sector as appealing enough? There is no doubt that
In Ghana, branded hotels are found mainly in Accra there is demand for economy-priced accommodation
(10), with one each in Takoradi and Kumasi. Cape from the travelling public – as intra-African travel
Verde, famous for its beaches, has 12 branded resort increases, along with GDP growth and greater
hotels spread across Sal Island (6), Boa Vista (4), connections between economies, that is what the
Praia (1) and Santa Maria (1). demand will surely be for.
Now that we have a sense of the scale and spread, We continue our search for investors willing to ‘do’
who are the players? Overall, there’s a total of economy. C
47 brands present in West Africa, ranging from
economy up to luxury (in this analysis we use the Trevor Ward
STR chain scales, as we’re not very keen on star Managing Director
ratings). But neither end of the scale is proving to be and
particularly popular with developers, with just one a Belinda Nwosu
piece. The Yaas Hotel in Dakar, Senegal (a Mangalis Consultant
brand) is the only hotel with an economy brand in
the region so far. W Hospitality Group, Lagos
www.w-hospitalitygroup.com
There are 18 midscale brands (15%) which include
Icon, Laico, Tulip Inn, Seen, Hawthorn Suites by
Wyndham and Ramada. Upper midscale brands
account for 31 out of the 117 branded hotels (26%).
The brands include Best Western Plus, Mercure,
Bon, Golden Tulip, Mantis, Protea and Park Inn by
Radisson.
8 | JUNE2019 Visit businesstravellerafrica.co.zaCOMMENT
Business travel
is important
to SA
P
rivate enterprises stand to benefit from a new
government-lead drive to grow domestic tourism, but
corporate South Africa has a significant role to play.
Business travel has become crucial in an economic growth
strateg y that aims to attract more than $100-billion in new
investment over the next five years.
Key to this strateg y is the development of domestic travel.
Not only is domestic travel for business purposes good for
the economy, but it also supports and creates employment
opportunities and improves the country’s tourism product
and competitiveness. That means more tourists, more
revenue, and good news for the South African economy.
Speaking at Africa’s Travel Indaba in Durban this year,
President Cyril Ramaphosa said that, when a South African
stays at a local accommodation or bed and breakfast
establishment, for business, pleasure or a ‘bleisure' (mix of
both), they help to grow these SMME travel entities and
create offshoot opportunities for others, because an influx
of visitors means more employment for tour guides, shuttle
services and chauffeurs, and caterers, which ultimately
improves the overall experience for international tourists too.
More global market share resulting from a better tourism
product will help to drive foreign investment, strengthen
the Rand and create business opportunities. Support for the
domestic travel sector will support economic growth and
mean better prospects for you and your organisation.
As a non-profit organisation representing the travel
industry, the Association of Southern African Travel Agents
(ASATA) recognises it too has a role to play. We aim to
support another of the president’s points, which not only
encourages stronger public-private partnerships, including
the development of SMME supplier training, but also to lobby
government on policy and regulation that will encourage
growth and not hinder it, consequently helping to create
sustainable jobs in the industry, both directly and indirectly.
MORE OF THE
VIEW, LESS TIME
We echo President Cyril Ramaphosa's sentiments that the
development of the domestic travel sector will require a united
national effort. Together, public and private entities can grow
the economy and deliver a better travel experience for the
foreign visitors, locals and you, the business traveller. C IN THE QUEUE
Otto de Vries
ASATA CEO Join Avis Preferred loyalty today and receive benefits
like upgrades, free additional driver and weekend
rentals, while enjoying Avis Preferred service at
every step of your journey.
WE TRY HARDER
AV I S . C O . Z A
Visit businesstravellerafrica.co.za *T&Cs Apply JUNE2019 | 9ADVERTORIAL
ExecuJet identifies
growth in Africa
ExecuJet, part of the Luxaviation Group, is seeing growth network, which ensures customers
opportunities in Africa and through its bases in Johannesburg receive the most competitive fuel
(Lanseria) and Cape Town, South Africa; Lagos, Nigeria; and and service prices. Clients are also
supported by ExecuJet’s award-
Seychelles, are ready to serve clients on various levels within the winning maintenance and repair
business aviation scope, from charter to aircraft management and organisation (MRO) facilities and
FBO services. the highest safety standards in the
industry.
E
xecuJet recently expanded aviation movements currently EXECUJET TOURS & SAFARIS
its managed fleet in Africa being seen in the region and ExecuJet has also launched a
with the addition of a we are dedicated to supporting ‘Tours & Safaris’ offering, in
Bombardier Challenger 350, based this encouraging trend with our partnership with two of Africa’s
in Nairobi, Kenya. The jet has expanded fleet.” leading safari operators: Luxury
been registered on Luxaviation’s “Our San Marino AOC is quickly Short Safari and Discovery Safaris.
new San Marino aircraft register becoming the go-to option for ExecuJet Tours & Safaris offers
and will be one of the first aircraft Luxaviation’s customers across the a range of tailor-made safari
to be operated on the Luxaviation globe, with aircraft from Europe itineraries with private aircraft
San Marino Air Operating and the Middle East, and now flights and transfers. The partners
Certificate (AOC). The Challenger East Africa, on our register,” says were hand-picked by ExecuJet for
350 boasts capacity for up to 10 Robert Fisch, Managing Director their exemplary safety and service
passengers and, with a range of at Luxaviation San Marino AOC. standards, matching ExecuJet’s
3,200 nautical miles, is capable of “We look forward to introducing own. Locations include all African
flying non-stop from Nairobi to many more customers to the safari destinations and the
Barcelona. industry-leading safety and service surrounding Indian Ocean islands.
“We are delighted to be bringing standards maintained at our San “Safaris are an integral part of
Bombardier’s premier mid-size Marino AOC in the near future.” African travel, providing a window
business jet to our customers in With the company’s acclaimed into the rich, diverse and complex
East Africa,” says Gavin Kiggen, understanding of aircraft environment of this astonishing
Vice-President Africa, ExecuJet. management, ExecuJet’s fleet continent,” says Kiggen. “Private
“This latest addition underlines benefits from an established aircraft are perfectly suited to
the exciting growth in business global fixed-base operation (FBO) this kind of exploration – they
10 | JUNE2019 Visit businesstravellerafrica.co.zataxiway and runway at Cape Town
International Airport. ExecuJet
offers clients VIP lounges,
secretarial services, undercover
parking facilities, and a fully-
equipped boardroom.
The FBO is celebrating its 10th
year in operation since moving
into the new facility, and with
that grown the charter fleet to
11 resident business aircraft.
The fleet ranges from turboprop
aircraft, such as the Pilatus PC-12
and King Air 200, to jets, such
as the Cessna Citation Mustang,
Hawker 800XP, LearJet 45 and two
Pilatus PC-24 jets.
The FBO itself is a regular hive
of activity with visiting business
aircraft from across the globe.
Over and above the expected
FBO services such as fuel supply,
afford you increased travel staff and partners. The aircraft has catering, parking, hotel and
flexibility, can land on short proved very successful on various ground arrangements, the FBO
or dirt runways and take you charter missions and we are also offers helicopter transfers and
directly to your destination, and delighted that a second PC-24 has concierge shopping for clients with
give our customers enhanced joined our fleet.” various exclusive brand partners.
luxury, privacy and comfort. We’re The PC-24’s interior is
incredibly excited to partner with unmatched in its combined ABOUT LUXAVIATION GROUP
Luxury Short Safari and Discovery comfort and functionality. Each Luxaviation is one of the largest
Safaris, offering clients bespoke component has been chosen to private aircraft operators in
and seamless experiences across enhance the passenger experience the world. It is comprised of
Africa.” - soft leathers and rare hardwood Luxaviation Helicopters, Starspeed
cabinetry create a bespoke interior and some of the world’s leading
PILATUS PC-24 that reflects the meticulous design business aviation entities,
ExecuJet recently became the first of the aircraft. The generously- including ExecuJet. The group
business aviation company to sized cabin boasts a continuous offers a wide range of services
operate and manage a Pilatus PC- flat floor and allows for an including aircraft management
24 ‘Super Versatile Jet’ in Africa. exceptional amount of headroom for private and commercially-
A second Pilatus PC-24 recently for both passengers and crew. registered aircraft, charter,
joined the managed aircraft fleet The PC-24 offers charter maintenance and fixed-base
and both aircraft are based at clients the latest in in-flight operations (FBOs). Luxaviation
ExecuJet’s world-class FBO at entertainment and connectivity. operates globally across Africa,
Cape Town International Airport. With an eight-seat passenger Asia-Pacific, the Caribbean,
The PC-24, developed by Swiss configuration, the aircraft can Europe, Latin America and the
OEM Pilatus, has been dubbed reach Angola, Zambia, Malawi, Middle East, under the regulatory
the ‘Super Versatile Jet’ due to its and Mozambique from Cape Town. umbrella of 15 air operator’s
flexibility and ability to operate in certificates (AOCs). Luxaviation
and out of very short and unpaved EXECUJET CAPE TOWN has a global network of 28
runways, making it the perfect Since opening its doors in 2004 FBOs, which are operated under
solution for safari clients. at Cape Town International the ExecuJet brand. Combined,
“Africa is the perfect Airport, ExecuJet has been actively Luxaviation operates more than
environment for the PC-24, with developing its operations in the 260 jets and helicopters under the
its testing terrain and challenging Western Cape of South Africa and most stringent safety standards.
runways, and we were honoured in 2009 moved into its own world- Luxaviation currently employs
to be the first business aviation class FBO facility. more than 1,000 employees
operator to manage the aircraft This purpose-built state-of-the- worldwide. Further information:
in the region,” says Kiggen. art FBO facility is strategically- www.luxaviation.com. C
“ExecuJet’s worldwide commitment located parallel to the main
to service excellence makes us runway and boasts 5,000m 2 EXECUJET CONTACT
industry-leading in our field, which of hangar space and 7,000m 2 Tel: +
27 11 516 2300 /
is testament to all the hard work of dedicated ramp parking, as +27 82 330 7399
and dedication exhibited by our well as exclusive access to the Email: charter@execujet.co.za
Visit businesstravellerafrica.co.za JUNE2019 | 11FEATURE – PRIVATE AVIATION
Poised for
growth The African private aviation industry has much potential
and is poised to grow, if the continent’s governments and
regulatory bodies can unlock that potential with a more
favourable environment and business-friendly policies.
12 | JUNE2019 Visit businesstravellerafrica.co.zaVisit businesstravellerafrica.co.za JUNE2019 | 13
FEATURE – PRIVATE AVIATION
symposium in 2018.
That’s still a relatively small
market, if one compares it with
the world’s other regions.
According to Beam Aviation,
Africa’s total trails the top eight
individual countries, in terms of
business aircraft numbers, with
the United States way out in
front with approximately 21,340,
followed by Brazil (1,539) and
Mexico (1,414), whilst the country
in eighth position was Great
Britain, with 502.
No surprise, then, to hear
most market commentators and
interested parties – including
those based abroad - stating
that the African private aviation
industry has much potential and
scope for growth.
“It seems that Africa is one
of the last continents where
there is still massive potential
for investment from local and
international companies,” says
Jeffrey Emmenis, CEO of Vertis
Aviation, the Switzerland-
headquartered charter specialist,
which recently beefed up its
African operation with the
appointment of Leslie Hart in a
business development role.
Vertis markets on behalf of
owner/operators a select portfolio
of business aircraft, including
two Boeing Business Jets BBJ, an
Airbus ACJ319, two Bombardier
Global 6000, a Gulfstream G450
T
and a Bombardier Challenger 350.
he size of the African "Too many African governments “Confidence (in Africa) has
aviation industry is tax aviation as a luxury rather grown as economies have
nothing to be sniffed at. than a necessity,” said Kuuchi. strengthened,” says Emmenis.
It apparently supports “We must change that perception. “Commercial airline travel still
$55.8 billion of economic activity The value of aviation for has many limitations and business
and 6.2 million jobs in Africa, governments is not in the tax aviation is often the only means
according to Raphael Kuuchi, receipts that can be squeezed from of travel between point to point
Special Envoy to Africa on it. It is in the economic growth destinations.”
Aero-Political Affairs at the and job creation that aviation Hart picks up on this.
International Air Transport supports." “Growth is predominantly
Association (IATA). That’s ‘aviation’ across the board driven by commodity prices on
"While this is impressive, we – not just in the commercial space. the whole in Africa as the oil,
are only scratching the surface of The private aviation sector has a gas, gold, and minerals sectors
what aviation can contribute to role to play here. need business aviation to thrive,”
building Africa's future," Kuuchi As of 2018, there were 481 he says. “In addition, industries
said at the African Airlines registered private jets in Africa such as construction, telecoms
Association’s (AFR A A) 8th and the continent's year-on-year and general infrastructure
Aviation Stakeholders Convention business aviation growth was development are driving demand.
held in Mauritius in May. 44%, according to Philip du Preez, There is huge potential across the
But challenges remain – among ExecuJet Africa’s Group GM: continent.”
them, exorbitant fuel costs, Flight Operations, speaking at the Sure, the potential is there, but
departure fees and taxes, which are Commercial Aviation Association it hasn’t been a smooth couple of
among the highest in the world, of Southern Africa’s annual years for some of Africa’s biggest
14 | JUNE2019 Visit businesstravellerafrica.co.zaeconomies, with the likes of South Founder and CEO of Dubai- Africa. Mostly, they are industrial Africa and Nigeria facing serious based UAS International Trip company executives flying in.” challenges. Support. “In 15 African countries Hosari also believes that Africa’s “When the larger economies we're handling more than 100 big economies will bounce back. underperform there is a direct movements a month. Clients might “Nigeria and South Africa are correlation with reduced be using existing FBOs, but they incredibly strong, and Rwanda is demand for charter flying,” still need somebody from UAS growing really rapidly,” he says. “I says Gavin Kiggen, ExecuJet’s to supervise the process. These was surprised to see that, recently, Vice-President for Africa. “For flights are coming to Africa from they launched their first satellite— example, in Nigeria and Angola, all over the world—from the U.S., this country [was] at civil war only both economies have a 10% and Europe, and China.” recently. I think they are on the 50% dependence, respectively, UAS has close ties with the right track.” on oil contribution to GDP. That Chinese market through its So, for some, the wheel is means that since the oil price partnership with Deer Jet, which turning, Africa is on the right and demand has been reduced bought a majority stake in UAS in track, and the opportunity is drastically, those economies late-2016. there. haven’t recovered and this has “Everybody is trying to invest “It is well known that African cascaded down to the aviation in Africa,” says Hosari. “China's economies are strengthening, and industry, because we support Belt and Road Initiative goes consequently, the need for aviation those economies through charter through Africa. Last year, at to support this growth will flights.” the China-Africa Cooperation drive the need for more aviation Nonetheless, there are those Forum, China announced it professionals,” says Dawit Lemma, who are seeing the opportunity in would be providing $60 billion in CEO of Addis Ababa-based trying times. financial support to Africa. We see Krimson Aviation, an aviation “In Africa, we have substantial Chinese, Turkish, French, British, consulting business that offers a traffic,” says Omar Hosari, and Dutch operators going into suite of services, including charter,
FEATURE – PRIVATE AVIATION ground handling and other business aviation-related services. OPEN SKIES Speaking of Krimson Aviation, 2018 was a significant year for Lemma’s operation. The company experienced encouraging growth, thanks largely to the the Ethiopian Civil Aviation Authority (ECA A) partially opening the Ethio- Eritrean airspace that had been closed to any air transport for the previous 20 years. When the Ethio-Eritrean border war broke out in 1998 the International Civil Aviation Organization (ICAO) closed the Ethio-Eritrean airspace on the request of the ECA A. Since then, the airspace has been a no-fly and with the continent home to zone. 12% of the world’s population, it “There are about five air routes only accounts for less than one which were closed for the last percent of the global air service 20 years,” said Wossenyeleh market. Hunegnaw, Director-General of One of the reasons put forward the ECA A. “For the time being for Africa’s under-served status, we have opened the air route that according to a 2018 World Bank starts from Kenya and passes study, ‘Open Skies for Africa – through Addis Ababa-Mekelle to Implementing the Yamoussoukro Asmara. The remaining air routes Decision’, is that many African will be opened shortly after the countries restrict their air services necessary preparation works are markets to protect the share held done.” by state-owned air carriers. It is not only Ethiopian Airlines In 1999, 44 countries committed that uses the Ethio-Eritrean to deregulating air services airspace. Many international within Africa by signing the airlines and private jets use the air Yamoussoukro Decision. It routes to fly to and from Europe followed up on the Yamoussoukro and the Middle East. Declaration of 1988, in which This development has many of the same countries significantly changed the business agreed to principles of air services outlook for private operators liberalisation. The idea was to like Krimson Aviation and is a open up the airspace over the great example of how Africa’s continent and make air travel governments and the regulatory more accessible and affordable. environment can facilitate It’s 20 years now since the economic growth, if the political Yamoussoukro Decision was taken current format is experiencing will is there. and, arguably, little progress challenges,” says Kiggen. IATA reported that 4.1 billion has been made. As a result, 2018 “Government involvement, high passengers were flown worldwide saw 23 countries launch a new taxes and political meddling in 2017, a new record, with a African Union enterprise – the have unfortunately significantly promising forecast to reach 7.8 Single African Air Transport slowed the progress of this great billion passengers by 2036. At the Market initiative (SA ATM). Much initiative. The opportunity cost same time, the United Nations like the Yamoussoukro Decision, of not having open skies on the World Tourism Organisation the SA ATM aims to increase continent is crippling to regional anticipates a rise in international connectivity, free up the skies and and continental economic growth, visitor arrivals from 1.3 billion in decrease costs. beyond what we can imagine.” 2017 to 1.8 billion by 2030. But the big question is, will it According to IATA, one Those are impressive numbers, work this time? of the main obstacles to the with the world’s travel only going “The Single African Air implementation of the 1999 one way. Yet, as it concerns Africa, Transport Market in its Yamoussoukro Decision has been 16 | JUNE2019 Visit businesstravellerafrica.co.za
the absence of an underpinning particularly nasty threats
regulatory text. That’s why the “ It is well known that African invariably involve a group of
African Union’s (AU) adoption economies are strengthening, ‘black-hat’ hackers working in a
of the regulatory text of the
and consequently, the need closed network that continuously
Yamoussoukro Decision, which attack aircraft,” says Josh Wheeler,
covers competition and consumer for aviation to support this Senior Director of Cybersecurity
protection, and dispute settlement growth will drive the need for at Satcom Direct. “It takes a lot
to safeguard the efficient to stop these aggressive and
operation of the market, is so more aviation professionals. ” intelligent hacks.”
important. Worth noting, particularly as
But a disappointing number Africa’s private aviation operators
of countries have signed the major issue for the business are seeing more and more requests
agreement. aviation industry. A lot of people for inflight connectivity.
Despite being faced with don’t realise that even when “There are certainly requests by
evidence that open skies can and you are at 40,000 feet, you are clients for aircraft equipped with
have worked elsewhere, African as vulnerable to cyber-attack as wi-fi, as we live in a connected
nations continue to be protective you are on the ground, unless world,” says Kiggen. “Some of the
of their airlines and airspace. you are using a secure server
previous generation aircraft must
Protectionism has taken many and practising digital security
be retrofitted with wi-fi solutions
forms – applying restrictions on protocols in the sky. Throw in the
and this remains at the discretion
frequencies and capacity, the type fact that the execs making use of
of the respective aircraft owners.
of aircraft operated, volume of private aviation are usually the
Some of our newer generation
traffic to be carried, and routes company’s most senior members,
aircraft in the charter fleet,
to be served. It is often motivated priv y to sensitive information and
such as the Challenger 350 and
by the fear that the national flag often in possession of valuable
Pilatus PC-24 jets respectively,
carrier will be unable to compete documentation, and you can see
all ensure continuous high-speed
with larger airlines. why inflight connectivity is not
just a simple case of flicking a connectivity for clients.”
CONNECTIVITY switch and logging on.
One area that is moving forward Satcom Direct, a global CONCLUSION
in the African private aviation connectivity solutions company, The potential for growth is there –
space is that of connectivity. says hackers are going after it just needs to be realised.
That’s digital connectivity and passengers on business jets with And for that to happen,
not the connectivity of various air rising frequency and it has logged Africa’s economies need to move
routes. a 54% increase in critical and in the right direction and the
It’s becoming the norm that if a high-level threats. The company continent’s governments need to
principal gets on a jet and there is has noticed that recent threats are show more intent towards – and
no connectivity, then the aircraft often from organized groups such ultimately achieve – an open skies
won’t fly. The opportunity to as Fancy Bear and sophisticated, environment, thereby providing
emulate the on the ground digital well-known hackers, some of the regulatory platform for private
experience in the sky is becoming whom are hired by nation-states or aviation in Africa to flourish
increasingly important. criminal entities hoping to create and play a role in securing the
Built in to this is the whole chaos or target specific VIPs. sustainable future of its citizens.
issue of cyber security – another “These perpetrators making Simple, hey? C
Visit businesstravellerafrica.co.za JUNE2019 | 17FEATURE – NIGERIA
Holding
steady It’s been a challenging few years for Nigeria, but
it remains an important African business travel
destination with much to offer.
18 | JUNE2019 Visit businesstravellerafrica.co.zaN
igeria has been referred
to as the ‘Giant
of Africa’, but the
continent’s colossus
has taken some body blows over
the past few years.
The export of crude oil accounts
for almost all of Nigeria’s foreign
exchange revenues, placing it
among the world’s top 10 oil
exporters. The country also has
one of the world's largest proven
reserves of natural gas, along with
substantial deposits of iron ore,
limestone, lead and zinc, although
most solid minerals are largely
untapped.
“It’s big business,” says Andre
Van Straaten, Regional Manager,
Business Development, Africa
for Wings Travel Management.
“It’s no surprise that petroleum
accounts for a large slice of the
Nigerian GDP, at roughly 40%.”
But, it’s the over-reliance on
oil revenues and a failure to
effectively diversify the economy
that caught Nigeria short five
years ago and ultimately led the
country into a recession.
The economy has been slow
to recover, but there is growth.
According to Trading Economics,
Nigeria’s gross domestic product
grew 2% year-on-year in the
first quarter of 2019, easing
from a 2.4% expansion in the
previous period and below market
expectations of 2.1%, mainly
due to a steep contraction in the
country's oil sector.
It’s also been an election
year for Nigeria, which always
places enormous pressure on the
economy.
After a short postponement,
Nigeria held its sixth democratic
elections in February, with
President Muhammadu Buhari re-
elected as leader of the country.
There were fears of violence in
the run-up to the elections, but
these were mostly unfounded. But
economic activity was affected.
For example, Virgin Atlantic
experienced a drop in load
factors, which was expected, “but
numbers quickly recovered as
the election period passed,” says
Justin Bell, the airline’s newly-
appointed Commercial Manager
for Nigeria.
Nigeria is an important and key
Visit businesstravellerafrica.co.za JUNE2019 | 19FEATURE – NIGERIA
International Airport in Lagos was
built to handle 200,000 passengers
annually, and if you take into
account its latest arrivals figures
of around eight million visitors
a year, you can understand the
delays.
The good news is the MMIA is
close to opening a new terminal,
hopefully by the end of 2019.
Services will slowly move over and
once the old terminal is empty, it
will be demolished to make way
for a fresh new facility.
“All airports across Nigeria
are undergoing renovations and
opening new terminals to deal
with the high volume of visitors
arriving and departing the
country,” says Batohi. “There are a
number on ongoing improvement
projects by government to improve
the overall airport experience.”
It seems that also applies to the
road leading to MMIA.
“Sections of the road now
complete and work underway
with a new energ y,” says Trevor
Ward, Managing Director at the W
Hospitality Group.
International airports are
located in Lagos, Abuja, Kano,
market for a number of corporates, Kaduna, Port Harcourt and Enugu.
which ensures business travellers
“ Lagos by its very nature is MMIA is the main gateway,
from all over the world continue an entrepreneurial city, so we 22 kilometres north of Lagos,
to fly into the country to harness see high numbers of small and although the journey to Victoria
its potential and buying power. Island – the main business hub
Operators in Nigeria estimate medium-sized enterprise business – can take hours, depending on
that 70-80% of visitors are owners flying our daily service the city’s traffic. If possible, only
business travellers, “however travel with carry-on luggage, as
corporate travellers have been from Lagos to London. ” baggage collection can be less
known to turn their work trips than efficient.
into bleisure trips,” says Claud MMIA is exceptionally chaotic
Batohi, Director of American “Nigeria is misunderstood by in the evenings, with several long-
Express Global Business Travel many of the players currently haul flights leaving at the same
Nigeria. “Operating conditions operating,” says Bernard Cassar, time, so the recommendation is
may differ depending on location, Executive Director of BON Hotels to arrive a minimum of three, if
with stable power supply West Africa. “Successful hotel not four or five hours before your
remaining one of the major operators will be those who, flight, to avoid the longest lines at
challenges.” like us, understand the local check-in and immigration. Before
“Lagos by its very nature is intricacies and inter-regional bags can be checked in, travellers
an entrepreneurial city, so we benefits and the manner in which need to go through a passport
see high numbers of small and branding plays a role in adding check, and all checked baggage is
medium-sized enterprise business value to the actual operations.” searched.
owners flying our daily service “Nigerian airports are
from Lagos to London,” says Bell. AIRLINES & AIRPORT challenging,” says Van Straaten.
In fact, the SME market is As the country’s first impression “Every bag you have is scanned
important enough to Virgin to visitors, Nigeria’s airports before entering the airport and
to warrant its own loyalty haven’t always put their best then checked prior to check-in,
programme that recognises and foot forward. Queues are usually which causes delays. Check-in
rewards SME fliers with benefits long and technolog y outdated or staff are exceptionally busy and
such as free wi-fi and discounts non-existent. Although, when you immigration is a lengthy process,
on direct bookings. consider that Murtala Muhammed as forms are needed for arrival
20 | JUNE2019 Visit businesstravellerafrica.co.zaCORPORATE // OIL & GAS // MARINE
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UK & EUROPE // AFRICA // NORTH AMERICA // SOUTH AMERICA // MIDDLE EAST // ASIA PACIFICFEATURE – NIGERIA
almost 1,000 additional rooms for
Nigeria.
“Accor led with two hotels
with between them 300 rooms, a
Pullman and a MGallery, both in
Lagos,” said the report.
Both are under construction,
due to open in 2020 or 2021. Also
expected to open this year are the
79-room The Providence, which
will be the third Mantis hotel in
Nigeria. There are a couple of
Swiss International properties
slated to open in Abuja, as well
as Continent’s first two hotels
in Africa, in Warri and in Abuja,
and a Best Western Plus hotel in
BON Hotel Abuja
Enugu.
Wyndham (Ramada), Continent,
Swiss International, Radisson and
Hilton each signed one deal in
the past year, mostly in Lagos and
Abuja.
Lagos already has a good
supply of international brands –
including the new Legend Hotel
Lagos Airport, Curio Collection
by Hilton. The hotel is located
adjacent to the private jet terminal
and has its own exclusive check-
in area and immigration desk for
private jet passengers.
The other big player in
close proximity to the airport
is Radisson Hotels, with the
Radisson Blu Hotel, Lagos, Ikeja,
after the group took over the
Park Inn by Radisson Lagos Victoria Island management of the property from
Marriott.
This has given Radisson Hotels
and departure. The airport also worth taking advantage of them, a fourth Lagos property, as
has limited air-conditioning for as there are few general facilities the group already operates the
such a hot country.” airside. If you’re travelling in Radisson Blu Anchorage Hotel,
“The queue to enter the airport first or business class, you will Lagos VI on Victoria Island, the
at departures seems to have probably receive complimentary Park Inn by Radisson Serviced
become better since they opened lounge access, along with access Apartments – also on VI – and
more entrances to allow access,” to the fast track queue at check-in the Radisson Hotel adjacent to the
says Kagiso Dumasi, Commercial and immigration. Ikeja property.
Manager – Global Network at If you do not qualify for access The Radisson Blu on VI is the
BCD Travel. “Congestion at to an airline lounge, but hold group’s longest-standing and
immigration is still daunting, a Priority Pass card, a Diners most established presence and
especially around the times that Club card, or are willing to pay sits on the banks of the Lagos
many internationals flight arrive – the access charge, you can gain Lagoon, in close proximity to the
they all seem to land at about the access to the Gabfol and other corporate headquarters, banking
same time.” lounges. Free wi-fi is available districts and consulates on VI.
If possible, it’s highly in all of these lounges, as well The property has 170 rooms and
recommended that you arrange a as complimentary snacks and suites and its amenities include
‘meet and greet’ facility on arrival, refreshments. free high-speed wireless internet,
particularly if you’re a first-time a fitness and wellness centre, and
traveller to Nigeria. HOTELS outdoor infinity pool. Food and
On departure, there are several W Hospitality’s 2019 Pipeline beverage is covered by the Voyage
lounges that offer ‘fee-per-visit’ – report noted that seven new deals Restaurant, the Surface Bar &
in the region of $50 – and it is well were signed in the last year, with Grill, and the View hotel bar.
22 | JUNE2019 Visit businesstravellerafrica.co.zaTRU B LU
AT THE HEART OF LAGOS VICTORIA ISLAND WITH UNSURPASSED VIEWS OVER THE LAGOON, ENJOY OUR RENOWNED
RADISSON BLU STANDARDS OF SERVICE, HIGH SPEED WIFI AND 100% SERVICE GUARANTEE.WE PRIDE IN OFFERING THE MOST
ENJOYABLE ATMOSPHERE IN LAGOS IN A SECURE AND PEACEFUL ENVIRONMENT
TAKE ADVANTAGE OF OUR SEASONAL PACKAGES AND BEST AVAILABLE RATES ON RADISSONBLU.COM
FOR FURTHER ENQUIRY OR RESERVATION, PLEASE CALL: +234 708 061 0000 OR
EMAIL: RESERVATIONS.LAGOS@RADISSONBLU.COM
L AGOS
RADISSON BLU ANCHORAGE HOTEL
Ozumba Mbadiwe Avenue, Victoria Island 1A, 101241 Lagos, Nigeria
T: +234 7080610000 info.lagos@radissonblu.com radissonblu.com/hotel-lagos
BLU EXPERIENCE
t&c applyFEATURE – NIGERIA
Radisson Blu Anchorage Hotel, Lagos, V.I.
in Kuramo Waters. The group’s
remaining Protea properties are in
Benin City and Owerri.
Best Western has four hotels
in Nigeria – two midscale Best
Western-branded hotels (Awka
and Benin City) and two upper
midscale Best Western Plus
properties (Ibadan and Asaba).
It is scheduled to open a fifth
property, the Best Western Plus
Enugu, shortly.
BON Hotels has taken over
management of two Protea Hotels
in Lagos – in Ikeja and on Victoria
Island. In total, it manages four
properties in Lagos, six (three
Legend Hotel Lagos Airport, Curio Collection by Hilton existing and three in its pipeline)
in Abuja, two in Owerri, and a
single property in each of Ekiti,
Ibadan, Kaduna, Kano, Warri and
Yola.
Prior to the fairly recent arrival
of BON Hotels, the five-star
Transcorp Hilton dominated the
Abuja hotel scene. The other
players are Hawthorn Suites,
a fully-serviced extended stay
property in the heart of Abuja,
the Hotel de Bently, and a
Frasers Suites that opened in
2017, offering extended stay
accommodation in the form of 126
residences.
Port Harcourt has its share
of international brands, with
Marriott’s Le Meridien Ogeyi
Place situated in the heart of the
“Nigeria is a key focus market city. The Best Western GR A Port
for Radisson Hotel Group and “ The Nigerian payment method Harcourt has 48 rooms in the
this is evident in our growth over of choice is via MasterCard, Visa Government Residential Area.
the past two years,” says William Accor’s four-star Novotel Port
McIntyre, Radisson’s Regional or Interswitch. Unfortunately, Harcourt is also situated in the
Director, Africa. “We currently American Express is still heart of the city, with five meeting
have three of our five brands rooms. The Golden Tulip Port
present in Nigeria, catering for very rarely accepted. ” Harcourt is located in the GR A
the upper mid to upper upscale area, whilst Swiss International
customer segments, with our Hotels has its Mabisel, Port
five hotels in operation in Lagos have left their hotel on Victoria Harcourt and Swiss Spirit Hotels
and Abeokuta. Within the next Island, but there’s still the & Suites Danag properties.
18 months we will open Africa’s old favourite, the Eko Hotel,
first Radisson Collection hotel in which has the largest range of CARD ACCEPTANCE
Nigeria, introducing the fourth restaurants of any hotel in Africa! If you hold a Visa, MasterCard or
brand which offers affordable The Southern Sun has one of Maestro Credit/Debit card, you
luxury to the country.” the best buffets in Lagos, whilst can withdraw cash in Naira from
“Hotels in Ikeja include the smaller boutique hotels include various ATMs around the country.
Sheraton (very nicely refurbished), the Wheatbaker (Legacy Hotels- Visa machines can be found
the Protea Hotel Select Ikeja, two managed), The George and the at Standard Chartered Bank.
ibis hotels, a Best Western, and Moorhouse.” MasterCard/Maestro machines
one of the city’s newest hotels, In addition to the Sheraton and are found in Ecobank and some
the L’Eola in Maryland, which is Protea properties in Ikeja, Marriott Zenith Bank branches.
managed by Mantis,” says Ward. also has a Four Points by Sheraton The Nigerian payment method
“Downtown, InterContinental in Ikoyi and another Protea hotel of choice is via MasterCard, Visa
24 | JUNE2019 Visit businesstravellerafrica.co.zaor Interswitch. Unfortunately, American Express is still very
rarely accepted.
VISAS
Foreign nationals who are not citizens of the Economic
Community of West African States (ECOWAS) need to apply
for a visa to enter Nigeria. This can be obtained at Nigerian
embassies, high commissions and consulates worldwide. It’s
advisable to start the visa application process well in advance.
Nigeria has recently introduced a visa on arrival, available
to visitors who may not be able to obtain a visa prior to travel,
intended mainly for countries that don’t have a Nigerian
embassy. According to the Nigeria Immigration Service website,
you need to apply for a letter of approval online, which you
present, along with your passport, evidence of payment,
evidence of accommodation in Nigeria and return ticket, at the
Visa On Arrival desk for processing.
“On my last visit, I was pleased to witness the visa on
arrival process,” says Dumasi. “Although I had applied for my
visa in advance in South Africa, I sat next to a traveller from
Mozambique who opted to get his visa on arrival. The only issue
he encountered was that the machine being used at the time only
accepted Visa cards (no MasterCard or Diners). This caused many
delays as travellers had to find other means to pay.”
ECOWAS is made up of Benin, Burkina Faso, Cape Verde,
Gambia, Ghana, Guinea, Guinea Bissau, Ivory Coast, Liberia,
Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo.
HEALTH
You must ensure that you are vaccinated against yellow fever
before travelling to Nigeria, and you will be asked to show
your vaccine certificate at the point of entry. Despite yellow
fever vaccination being a visa requirement, visitors may still be
denied entry if they cannot present their vaccination certificate
on request. C
TIPS FOR FIRST-TIME TRAVELLERS
1. Shaking hands and the exchange of business cards is
common practice
2. Respect titles, particularly with tribal or religious
leaders
3. Lack of punctuality is commonplace
4. Negotiations are slow
5. Business attire is formal
6. Pack an umbrella for the rainy season between May
and October
7. Carry passport and travel documents at all times, and
take photocopies
8. Tipping is expected, at about 10% of the bill
9. Office and banking hours are 08h00 to 16h00
10. Activate a roaming agreement with your telecom
provider
11. Chronic fuel shortages translate to regular flight
delays. Opt for early morning flights
12. Avoid taxis as they are unsafe
13. Cash-based economy using Naira – foreigners
expected to pay in local currency although US dollars
accepted
14. Only use ATMs located within bank branches
15. Smoking is banned in public places
Courtesy of Wings Travel Call 01448 3000, visit virginatlantic.com,
or contact your local IATA Travel Agent to book
Visit businesstravellerafrica.co.za JUNE2019 | 25You can also read
