Development dilemma as eastern Greenland eyes tourism boost

US President Donald Trump offered to buy Greenland. Now increasing numbers of tourists also have their eyes on the Danish territory. (Shutterstock)
Updated 17 October 2019
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Development dilemma as eastern Greenland eyes tourism boost

KULUSUK, Denmark: Kayaking past blue-white icebergs drifting along near a pristine harbor, wandering around colorful houses or trekking in the snow-capped wilderness: July and August are high season for tourists in eastern Greenland.
Many of the 85,000 tourists who visit each year head to the west coast, but eastern Greenland, with its glaciers, wilderness and wildlife starring whales and polar bears, is also drawing visitors.
Sarah Bovet, a 29-year-old Swiss artist, said it’s hard to know what to expect.
“Thinking you’re going to be surprised, you are even more so in reality,” she said standing outside a hostel in the tiny village of Kulusuk.
Bovet was on an artistic residency in Greenland when she visited Kulusuk and its 250 souls.
Although she had imagined a small village before arriving, its stunning views and bright colors still came as a surprise.
With just one supermarket, an airport built in the 1950s by the US military to serve a Cold War radar base, and a harbor surrounded by brightly painted wooden houses, most of the villagers appreciate the extra revenue from tourism.
Justus Atuaq, a young hunter in Kulusuk, takes tourists out on sled tours in March and April — the spring high season — earning money that helps him feed and care for the dogs he uses for racing and hunting.
“Now I can take dogsleds for hunting, and sometimes tourists coming from other countries also want to dogsled,” he said outside his wooden house.




Residents in the village of Kulusuk welcome extra tourist revenue, but some worry about the effect of rising visitor numbers on the region’s wilderness. (AFP)

Tourists also take boat trips during the summer high season from July to August.
Arrivals to the island grew 10 percent year-on-year from 2014 to 2017, and three percent in 2018, according to the tourist board, Visit Greenland.
Many adventure seekers and nature lovers arrive by plane, but cruise ships also bring admirers, hugging the picture perfect coastline.
But they are not alone in taking an interest in the world’s largest island.
The Danish territory’s rich natural resources and growing strategic importance as the Arctic ice sheet melts have attracted the attention of US President Donald Trump.
The Arctic region has untapped reserves of oil, gas and minerals, as well as abundant stocks of fish and shrimp.
In August, Trump offered to buy Greenland, then called off a visit to Copenhagen over its refusal to sell.
Denmark colonized Greenland in the 1700s, granting it autonomy in 1979.
Today, many Greenlandic political parties advocate full independence.
The territory still receives an annual subsidy from Copenhagen, which was 4.3 billion Danish kroner (576 million euros) in 2017, and tourism could help it to become economically self-reliant.
Like many parts of Greenland, Kulusuk has no tarmac roads and visitors must travel by plane or boat.
The growth in tourism could put a strain on the village’s infrastructure, and the sector faces unique challenges given Greenland’s location, weather and the cost of traveling there.
Day tours of Kulusuk with flights from the Icelandic capital Reykjavik are 97,000 Icelandic kronur ($780, 700 euros).
Jakob Ipsen, a 48-year-old who grew up between Denmark and Greenland’s west coast, runs Kulusuk’s sole hotel.
The 32-room hotel stands beside a fjord, and from its dining room, guests can watch icebergs drift by during the summer.
But the region’s isolation can be problematic, Ipsen admits.
“We have to get all our supplies in with the first ship for the whole summer season, and for the winter season when everything is frozen over, we have to get all our supplies in with the last ship for the whole winter,” he said.
Greenland must tackle its infrastructure challenges if it wants to develop tourism, Visit Greenland says.
Government-funded work is under way to extend runways at the capital Nuuk and Ilulissat, both on the west coast, and a new airport is planned in the south.
The tourist body said it would weigh the environmental impact of boosting infrastructure, both on the environment and on local communities.
Ipsen worries about the effects of uncontrolled tourism to the region.
“We want to try to maintain it as it is, so it’s not exploding,” he said.
Already, said Johanna Bjork Sveinbjornsdottir, who runs tours in Kulusuk for an Iceland-based company, the rise in visitor numbers is making itself felt.
“In the campsites here out in nature where you used to be alone, there’s two, three groups at a time,” she said.
Like Ipsen, she is also concerned about the effect that rising visitor numbers could have on the wilderness around the village.
“If you want nature to survive that, you have to build up the infrastructure,” she said, pointing to the lack of officially designated campsites around Kulusuk, with no rubbish bins or toilets for travelers outdoors and no one supervising the sites.
Despite the concerns, Sveinbjornsdottir hopes visitors will keep coming.
“They go back as different people,” she said. “Everything is beyond what you ever imagined.”


Saudia unveils beta version of new Travel Companion platform

Updated 54 min 8 sec ago
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Saudia unveils beta version of new Travel Companion platform

RIYADH: The Kingdom’s flagship airline Saudia has launched a beta version of its digital platform, the Travel Companion, powered by advanced artificial intelligence, aiming to transform the industry.

The new initiative, unveiled during a special event, is part of a two-year plan developed in partnership with global professional services firm Accenture.

“This platform, resulting from our ongoing collaboration with Accenture, signifies our forward-looking approach to providing guests with unparalleled convenience and flexibility,” the Director General of Saudia Group, Ibrahim Al-Omar, said. 

The main objective of this launch is to transform how travelers engage with the airline and establish new benchmarks for digital travel.

TC, initially named, offers personalized and tailored solutions to meet individual preferences and needs, providing search results from trusted and authenticated sources and incorporating visual aids in its responses.

The interface is designed as a comprehensive, one-stop solution that enables users to book concierge services, including hotels, transportation, and restaurants, as well as activities and attractions, without the need to switch between multiple platforms.

“This is a beta version. This is not the product. We will keep enhancing and developing it,” Al-Omar stressed.

Moreover, it establishes seamless connections with transportation platforms and various train companies, ensuring a smooth and uninterrupted journey.

Commenting on the new announcement, Chief Data and Technology Officer at Saudia, Abdulgader Attiah, told Arab News: “It’s like having the VVVIP concierge service at your hand. For public, it’s not any anymore VIP service. It’s not a paid service. You have it for free, and it will give you all what all kind of services that VVIP service would provide to you, so it’s your private concierge.”

He added: “We will be the anchor for the travel industry. We are not anymore, an operator for an airline, but with this app, you will be an anchor for all tourism ecosystem in a single app, so everyone can collaborate in this app, and having the links, so you don’t need to communicate with any other party, so through this app, you can communicate to all travel ecosystem.”

In future phases, Saudia plans to add more features, including voice command and digital payment solutions.

“Once we add the complete solution we will add the more services, which is we call it the concierge services; booking for hotels and transportation and the restaurants, all of these ones is done during the, next two years, and this is the complete life cycle of the, vision we have today,” Attiah told Arab News.

He added: “If you want to develop this app, five years back, it would take three, four years. Today, we have developed only in seven, eight months. To that from the inspirational part to having an actual booking, we started back in June and now we are live.”

Attiah also underlined that Saudia is the first airline in the world to implement a GenAI-based chatbot that can perform end-to-end actions, meaning it can not only engage in conversation but also execute tasks or actions based on user requests.

With an always-on Travel Companion available through a telecom e-SIM card provided by Saudia, users can stay connected globally without relying on additional internet providers.

Furthermore, users can purchase data packages for extended use, guaranteeing continuous access to the platform’s services.


Saudi economy witnessing a fundamental shift, says minister

Updated 24 April 2024
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Saudi economy witnessing a fundamental shift, says minister

RIYADH: Since the launch of Vision 2030, Saudi Arabia has witnessed a fundamental shift in its economy and the business environment is transforming with the creation of new sectors, said the Kingdom’s economy minister.

Faisal Al-Ibrahim was speaking at a conference in Riyadh on Wednesday during which he highlighted the fast-evolving business landscape of the Kingdom focused on diversifying its income sources away from oil.

Speaking at the event titled “Industrial policies to promote economic diversification,” the top official said there have been fundamental changes in the legislative and economic regulations to promote sustainable development since the launching of the Vision 2030 plan.

He said the Kingdom’s efforts to diversify its economy have led to the creation of new sectors due to the initiation of several megaprojects such as NEOM, the Red Sea, and others. 

 “We stand at a crossroads to change the global economy,” Al-Ibrahim said.

He stressed the need for strategies to ensure a flexible and sustainable economy.

“The presence of foreign investments will develop competitiveness in the long term,” the minister affirmed.

The minister also highlighted how the Kingdom was working in the medium term to focus on transforming sectors that represent a technological shift.

Saudi Arabia is keen on achieving development in the medium term by balancing short-term profits and promoting long-term success, Al-Ibrahim highlighted.

Since the launch of the vision, the Ministry of Economy and Planning has conducted several economic studies aimed at diversifying the economy by developing objectives for all sectors, raising complexity levels, and studying emerging economies to enhance the Kingdom’s capabilities.  

 


Saudi Arabia closes April sukuk issuance at $1.97bn

Updated 24 April 2024
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Saudi Arabia closes April sukuk issuance at $1.97bn

RIYADH: Saudi Arabia has completed its riyal-denominated sukuk issuance for April at SR7.39 billion ($1.97 billion), representing a rise of 66.44 percent compared to the previous month. 

The National Debt Management Center revealed that the Shariah-compliant debt product was divided into three tranches. 

The first tranche, valued at SR2.35 billion, is set to mature in 2029, while the second one amounting to SR1.64 billion is due in 2031. 

The third tranche totaled SR3.51 billion and will mature in 2036. 

“The Kingdom also plans to expand funding activities during the year 2024, reaching up to a total of SR138 billion from what has been stated previously in the Annual Borrowing Plan, with a portion of this amount already covered up to date,” said NDMC in a press statement. 

It added: “This step comes with the aim of capitalizing on market opportunities to achieve proactive financing for the coming year and utilizing it to bolster the state’s general reserves or seize additional opportunities to enhance transformative spending during this year, thereby accelerating strategic projects and programs of Saudi Vision 2030.” 

In March, NDMC concluded its second government sukuk savings round for March, with a total volume of requests reaching SR959 million, allocated to 37,000 applicants. 

The center added that the financial product, also known as Sah, offers a return of 5.64 percent, with a maturity date in March 2025. 

Earlier this month, Fitch Ratings, in a report, said that global sukuk issuance is expected to continue growing in the coming months of this year, driven by funding and refinancing demands. 

The credit rating agency noted that various other factors like economic diversification efforts by countries in the Gulf Cooperation Council region and development of the debt capital market will also propel the growth of the market in the future. 

In January, another report released by S&P Global revealed that sukuk issuance worldwide is expected to total between $160 billion and $170 billion in 2024, driven by higher financing needs in Islamic nations.

The report noted that higher financing needs in some core Islamic finance countries and easing liquidity conditions across the world are two crucial factors which will drive the growth of the market this year. 


Closing Bell: TASI edges down to close at 12,355 points 

Updated 24 April 2024
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Closing Bell: TASI edges down to close at 12,355 points 

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 128.72 points, or 1.03 percent, to close at 12,355.69.    

The total trading turnover of the benchmark index was SR8.45 billion ($2.25 billion) as 41 of the listed stocks advanced, while 187 retreated.   

Similarly, the MSCI Tadawul Index decreased by 14.78 points, or 0.95 percent, to close at 1,548.62. 

Also, the Kingdom’s parallel market Nomu dipped, losing 365.84 points, or 1.37 percent, to close at 26,326.12. This comes as 17 of the listed stocks advanced, while 45 retreated. 

The best-performing stock of the day was Al-Rajhi Co. for Cooperative Insurance as its share price surged by 9.87 percent to SR138.

Other top performers include Al Sagr Cooperative Insurance Co. and First Milling Co., whose share prices soared by 6.38 percent and 5.63 percent, to stand at SR35.85 and SR78.80, respectively. 

In addition to this, other top performers included Batic Investments and Logistics Co. and Saudi Research and Media Group. 

The worst performer was Al-Baha Investment and Development Co., whose share price dropped by 7.14 percent to SR0.13. 

Other weak performers were National Co. for Learning and Education as well as Arriyadh Development Co., whose share prices dropped by 5.95 percent and 5.91 percent to stand at SR148.60 and SR22.60, respectively. 

Moreover, other subdued performers also include Red Sea International Co. and AYYAN Investment Co. 

On the Kingdom’s parallel market Nomu, the best-performing stock of the day was Osool and Bakheet Investment Co., as its share price surged by 12.05 percent to SR40.90. 

Other top performers on Nomu include Arabian Plastic Industrial Co. and Lana Medical Co., with their share prices soaring by 7.42 percent and 3.59 percent, respectively, reaching SR37.65 and SR41.85. 

The worst performer was Jahez International Co. for Information System Technology, whose share price dropped by 5.88 percent to SR32.

Other weak performers were Alhasoob Co. as well as Aqaseem Factory for Chemicals and Plastics Co., whose share prices dropped by 3.61 percent and 3.38 percent to stand at SR64.10 and SR62.80, respectively. 

On the announcements front, HSBC Saudi Arabia, serving as sole financial advisor, joint bookrunner, underwriter, and lead manager, has announced the intention of Dr. Soliman Abdel Kader Fakeeh Hospital Co., known as Fakeeh Care Group, to proceed with its initial public offering on the main market of Saudi Exchange. 

According to a statement, the offering will include 49.8 million ordinary shares, with 19.8 million existing shares and 30 million new shares upon completion.  

This offering is set to represent 21.47 percent of the company's share capital post-capital increase.  

Saudi Exchange and the Capital Market Authority approved the listing and IPO, respectively, with the pricing of shares to be determined after the book-building period. 


Ministry tenders contract for expansion of Prince Faisal bin Fahd Stadium

Updated 24 April 2024
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Ministry tenders contract for expansion of Prince Faisal bin Fahd Stadium

RIYADH: Saudi Arabia’s Sports Ministry has tendered a contract to boost the capacity of Riyadh’s Prince Faisal bin Fahd Stadium to 45,000 seats up from its current 22,188.

The expansion project comes as the Kingdom prepares to host the Asian Football Confederation Asian Cup in 2027, reported MEED. 

This initiative aligns with Saudi Arabia’s plan to build sports stadiums under its SR10.1 billion ($2.7 billion) capital projects program. 

The ministry requested proposals on April 8 and expects to receive bids on June 14.

In April, the ministry also tendered an early works contract for the expansion and development of the Prince Mohammed bin Fahd Stadium in Dammam.

At the time, the scope of the contract included the stadium’s decommissioning, demolition, and bulk excavation, as well as the relocation and setting up of related facilities.  

In July 2023, the ministry invited firms to submit pre-qualification documents for the main construction contracts for the schemes in the capital projects program. 

The undertakings, which are set for completion before the 2027 AFC Asian Cup, entail increasing the capacity of King Fahd Stadium in Riyadh to 92,000 seats and boosting the seating capacity of Prince Mohammed Bin Fahd Stadium to 30,000 seats. 

It also includes increasing the seating capacity of the Prince Saud bin Jalawi Stadium in Al-Kahir to 45,000 and building a sustainable New Riyadh Stadium north of the city with 45,000 seats.

Another main element of the ministry’s projects program is the construction of as many as 30 new training grounds and facilities in proximity to the stadiums that will be used for the 2027 competition. 

Construction on the projects is expected to start in July 2024 and scheduled to be completed by December 2025.

A total of 18 facilities will be ready in time for the 2026 AFC Women’s Cup.