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Gulf region has massive potential for growth, delegates at Luxury Hospitality Summit are told.
Dubai is leading the Gulf region’s luxury hospitality sector out of the recession, bouncing back strongly from the slump of 2008 and 2009, delegates at the inaugural Luxury Hospitality Summit heard today. The Emirate has an ambitious hotel development pipeline, and the rate of development is expected to approach pre-recession levels.
The event, which was held at the Jebel Ali Golf Resort & Spa in Dubai, attracted around 100 hotel operators, developers, consultants and suppliers to debate the future direction of the sector.
The conference opened with a thought provoking presentation from Ross Maclean of Ernst & Young who explored what he called “the digitisation of everything” over the last 10 years, and how the process had turned “customers in to chameleons” who are hard to pigeonhole. Inspite of this he stressed that MENA consumers are among the most brand-influenced in the world, and that loyal, satisfied customers can be very potent ambassadors for hospitality brands.
Ali Ahmed Al Hosani, chairman and founder of Samaya International, pointed to the numerous events which offer huge potential for the hospitality sector in the region, including religious tourism in Saudi Arabia, the FIFA World Cup in Qatar, and Formula One races. Fredrik Reinisch, general manager of Jebel Ali Golf Resort & Spa said the luxury end of the hospitality industry has proved to be much more resilient than lower-scale sectors.
A panel looking at the potential for boutique hotels in MENA said that despite a lack of awareness of the concept in the region among both operators and consumers, these properties, with their individuality and high levels of service, present a great opportunity to offer an authentic Gulf experience, which is difficult to find in big branded hotels.
Peter Goddard, managing director of TRI Hospitality Consulting, said that as well as Dubai, other areas with significant potential for growth in terms of new hotel development include Jeddah, Makkah, Medina, Riyadh, Damascus and Doha.
James Wilson of International Resort Development Advisors stressed the importance of converting a bigger percentage of the many millions of air travellers who arrive in the region on layovers into longer term visitors who see MENA as a leisure destination rather than a staging post on a journey elsewhere.
Event organiser Piers Brown said: “It was very encouraging to see the leading lights of the hospitality gathering at the Summit, and the overriding feeling was that the sector in MENA, particularly at the upper end of the scale, is recovering well from the global recession and has huge potential for growth, with Dubai leading the way. There is a real sense of confidence in the industry that, although there will be intense competition over the next few years, the rewards for well researched, well planned and well developed properties are considerable. We look forward to watching the market evolve, and to seeing lots more luxury hospitality brands at next year’s conference to discuss the progress made.”
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