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By K Raveendran Resolution of the US-Israel war with Iran now appears further away than at any point in the conflict, with the latest American strikes pushing global markets into a more unsettled phase. The US launch of retaliatory attacks on Iranian defence and radar systems after Washington accused Tehran of responsibility for the downing […]

The article India’s Fiscal Shield Comes Into Focus As Hormuz Crisis Darkens Outlook appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Visitor arrivals from the six GCC countries reached 55,924 in 2025, up 25.2 per cent from the previous year, outpacing Japan’s wider inbound tourism growth. The increase came as total international arrivals hit 42.683 million, a record annual figure and a 15.8 per cent rise from 2024, when Japan had already surpassed its pre-pandemic high.

The Gulf performance remains small in absolute numbers compared with Japan’s biggest source markets in East Asia, North America and Europe, but the pace of growth has drawn attention from travel operators because GCC visitors tend to favour premium hotels, private tours, family travel, shopping, wellness experiences and multi-city itineraries. Demand has been supported by stronger aviation links through Dubai, Abu Dhabi and Doha, easier visa processes for several categories of travellers, and sustained interest in Japan’s seasonal attractions.

The rise also reflects a broader shift in Gulf outbound travel. Travellers from the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain and Oman are looking beyond traditional European summer destinations, especially as Japan promotes cooler regions, countryside routes and immersive cultural experiences. Hokkaido has gained visibility among Gulf families seeking milder summer weather, scenic drives and nature resorts, while Tokyo, Kyoto and Osaka continue to dominate first-time travel plans.

Japan’s appeal has been reinforced by the weak yen, which has made shopping, dining and accommodation more attractive for visitors with dollar-linked Gulf currencies. Luxury retail, department stores, theme parks, Michelin-listed restaurants, ryokan stays and private guides have benefited from the spending power of long-haul visitors. Travel agencies across the Gulf have also reported growing demand for tailor-made trips covering cherry blossom viewing, autumn foliage, ski resorts and Japanese pop culture.

Tourism spending has become a major pillar of Japan’s post-pandemic services economy. International visitor expenditure rose to about ¥9.5 trillion in 2025, up 16.4 per cent from the previous year, while average spending per visitor was roughly ¥229,000. The figures underline why Japan is targeting higher-value tourism rather than only volume growth, especially as pressure mounts on crowded destinations such as Kyoto, Mount Fuji viewing spots and central Tokyo districts.

Japan’s national tourism strategy aims to draw 60 million visitors annually by 2030, but policymakers and local authorities are increasingly balancing that target with concerns over overtourism. Measures have included crowd controls, higher accommodation taxes in some areas, visitor-management rules at popular sites and campaigns encouraging travellers to explore regional destinations. For GCC visitors, that strategy fits with demand for quieter, curated experiences outside the standard Golden Route of Tokyo, Kyoto and Osaka.

JNTO’s Dubai office has intensified destination marketing across the Gulf, with campaigns highlighting Hokkaido, Setouchi and other regions suited to repeat visitors. Promotional activity has focused on travel trade partners, digital media, luxury travel networks and family-oriented itineraries, reflecting the region’s preference for planned holidays with strong service standards. Japan’s participation in major Gulf travel events has also helped place the country more firmly in tour operators’ premium Asia portfolios.

Air connectivity remains a decisive factor. Gulf hubs provide one-stop access to several Japanese gateways for travellers from across the region, while Emirates, Etihad Airways and Qatar Airways have helped keep Japan visible in high-yield leisure and business travel channels. Doha, Dubai and Abu Dhabi also act as connecting points for travellers from wider Middle East markets, strengthening Japan’s ability to attract visitors beyond its traditional Asian feeder markets.

Visa facilitation has added momentum. UAE nationals continue to benefit from visa-free short stays, while Qatari citizens have access to similar arrangements after completing required registration. Travellers from Saudi Arabia and other GCC states have increasingly been able to use electronic visa channels for tourism, reducing friction for families and first-time visitors. Expatriate residents in Gulf countries remain subject to nationality-based rules, but online processing has improved access for many applicants.

As part of this strategy, the company unveiled Masar Gardens, a new mixed-use urban destination in Makkah with an initial infrastructure and land investment of approximately SAR 6 billion. The project spans 1.2 million square meters and is expected to be developed over a five-year period.

The new strategy targets expanding Umm Al Qura’s development portfolio beyond its flagship Masar Destination, with future projects planned across Makkah, Jeddah, and Madinah. The company aims to create a diversified portfolio of urban destinations valued at exceeding SAR 50 billion while attracting new investment opportunities and strategic partnerships.

Yasser Abuateek, Chief Executive Officer of Umm Al Qura for Development and Construction, said the company is leveraging its proven development expertise and institutional capabilities to deliver long-term value for investors, communities, and the wider economy.

Masar Gardens will feature residential, commercial, hospitality, and public-use components supported by extensive infrastructure, green spaces, pedestrian pathways, and modern mobility solutions. The project is designed to contribute to Makkah’s long-term urban development objectives while enhancing quality of life and strengthening the city’s attractiveness as an investment destination.

The announcement reflects the company’s broader vision of developing scalable urban destinations that support Saudi Arabia’s economic diversification ambitions and create sustainable growth opportunities for local and international investors.

Hashtag: #Development #SaudiArabia

https://www.ummalqura.com.sa/en

The issuer is solely responsible for the content of this announcement.

Customs figures showed a sharp rise in outbound shipments of unwrought aluminium and aluminium products, extending the strong performance seen in April, when exports reached 598,000 metric tonnes. The increase underlined China’s role as the main buffer for a global market unsettled by production cuts, shipping delays and higher insurance costs linked to the conflict around the Gulf and the Strait of Hormuz.

The aluminium surge came as China’s wider trade machine gathered pace. Total exports rose 19.4 per cent from a year earlier in May, beating forecasts and widening the trade surplus to more than $105 billion. Imports also grew 27.4 per cent, but the headline gain masked a sharp fall in crude purchases, with volumes down about 29 per cent as refiners leaned more heavily on inventories and cut some buying amid elevated freight and geopolitical risks.

Aluminium has become one of the clearest channels through which the Middle East war is reshaping industrial supply chains. Producers in Gulf states account for a meaningful share of non-Chinese primary aluminium supply, and disruption to power-intensive smelting, port activity and shipping routes has tightened availability for consumers in Europe, Asia and North America. Prices in London climbed to a four-year high this month as traders priced in the risk of prolonged supply constraints.

Chinese exporters have benefited from the opening. Producers and traders have increased shipments of semi-finished products and other aluminium categories where overseas premiums have risen faster than domestic prices. The price gap has improved margins for exporters, even as Beijing continues to manage capacity growth in a sector long associated with heavy energy use and emissions.

The market shift is particularly important for manufacturers in transport, construction, packaging, power infrastructure and renewable energy. Aluminium is widely used in electric vehicles, aircraft parts, solar frames, building systems and high-voltage transmission equipment. A sustained shortage outside China could raise input costs for industries already dealing with expensive financing, disrupted shipping schedules and volatile energy markets.

China’s advantage rests on scale. The country dominates global aluminium production and has built deep processing capacity across provinces such as Shandong, Henan, Guangxi and Yunnan. Its producers can move quickly when export margins improve, though output remains constrained by power costs, environmental controls and the national ceiling on smelting capacity.

The export rise also carries political sensitivity. Western governments have long argued that China’s industrial policies create excess capacity and depress global prices. A fresh wave of metal exports, even if driven by war-related shortages, could sharpen trade friction at a time when the United States, Europe and other economies are expanding scrutiny of Chinese goods in sectors ranging from steel and batteries to solar components and electric vehicles.

Crude oil tells a different story. China remains the world’s largest crude importer, but May’s decline showed how refiners are adjusting to uncertainty in Gulf shipping. The Middle East supplied a large share of China’s crude last year, with Saudi Arabia, Iraq, the United Arab Emirates, Oman, Kuwait and Qatar among key reported suppliers, while Iranian barrels have continued to reach Chinese buyers through opaque trading channels.

Refiners have drawn on commercial and strategic inventories built during earlier periods of lower prices and heavy discounted buying. Weak domestic fuel margins have also reduced the incentive to import aggressively. Independent refiners in Shandong and state-run plants have faced pressure from high crude costs, capped fuel prices and softer demand growth as electric vehicles erode petrol consumption.

The fall in crude imports may help ease immediate pressure on global oil markets, but it also reflects the vulnerability of China’s energy security to maritime disruption. The Strait of Hormuz remains central to crude and liquefied natural gas flows, and any prolonged interruption would force Beijing to rely more on stockpiles, pipeline supplies from Russia and Central Asia, and alternative seaborne routes.

For commodity markets, May’s trade data showed a split picture. Metals exports are expanding where China can monetise overseas shortages, while energy imports are being managed more cautiously to reduce exposure to war-driven price spikes. Copper imports slipped from April, suggesting that parts of the manufacturing supply chain remain uneven despite the strong headline export performance.

The ‘Xpress Sale’ is open for bookings from May 27 to May 31, 2026, with travel valid from June 15 to October 10. The discount applies to Lite and Value fare categories, giving passengers a wider window to plan summer, festive and early autumn trips across the carrier’s network. The airline began the sale through its website and mobile app on May 27, before widening access to major booking platforms from May 28.

The scale of the offer points to a calibrated push by Air India Express to fill capacity across a network that now spans 42 domestic and 17 international destinations. The carrier operates more than 500 daily flights and has been expanding its presence across South Asia, Southeast Asia and the Gulf, where demand is shaped by migrant traffic, family visits, business travel and holiday movement.

Passengers booking directly through the airline’s website or app during the sale are being offered zero convenience fees, adding a direct-channel incentive to the headline fare reduction. The campaign also includes additional benefits for Tata NeuPass members, including 20 per cent off Business Class fares, an extra discount of up to ₹300 on flight bookings and the opportunity to earn up to 8 per cent NeuCoins.

The Business Class offer covers seats with extra legroom, complimentary hot meals under the airline’s Gourmair product, enhanced check-in baggage allowance and priority services under Xpress Ahead. The airline is also offering up to 30 per cent off selected add-ons, including meals, seat selection, excess check-in baggage and extra cabin baggage options.

Air India Express is positioning the sale as both a demand-generation exercise and a customer-retention tool at a time when fare-sensitive travellers are comparing airlines more actively across direct platforms and online travel agencies. Promotional fare campaigns have become a central part of the low-cost aviation model, helping carriers improve forward bookings while encouraging passengers to buy optional services that raise ancillary revenue.

The offer arrives against a backdrop of steady aviation demand. Domestic air passenger traffic in FY2026 stood at about 167.7 million, reflecting moderate growth despite pressure from high operating costs and capacity adjustments across the sector. March 2026 alone recorded about 14.68 million domestic passengers, higher than both the previous month and the same month a year earlier.

Fuel remains one of the largest cost variables for airlines, often accounting for a major share of operating expenditure. Volatile jet fuel prices, currency pressure and airspace disruptions have added complexity to airline planning, making advance sales an important tool to manage load factors, cash flow and route economics. Discounted inventory can support demand on thinner routes while helping carriers protect aircraft utilisation during shoulder periods.

The campaign also fits into Air India Express’s broader transformation after the merger of AIX Connect with Air India Express was completed in October 2024. The merged low-cost carrier had a fleet of 88 aircraft at the time and has been working towards a larger narrow-body operation built around domestic and short-haul international markets.

The airline’s growth strategy includes a plan to more than double capacity over four to five years and build a fleet of more than 200 aircraft. Domestic routes are expected to take a larger share of capacity over time, rising towards about 60 per cent of operations, while short-haul international flying remains a key component of the network.

Gulf connectivity remains central to the carrier’s overseas strategy. Air India Express has been rebuilding and expanding services to West Asia, including Qatar, Bahrain, the UAE, Oman and Saudi Arabia, with more than 40 daily services to Gulf destinations after route resumptions and frequency additions. This market is especially important for travellers from Kerala, Karnataka, Tamil Nadu, Telangana and other states with deep labour, family and business links to the region.