Preview: The KSA GM Debate
Hot on the heels of the inaugural Great GM Debate in Dubai, Hotelier Middle East is gearing up to host its first conference in Saudi Arabia
Hotelier Middle East is set to hold its first conference in the Kingdom of Saudi Arabia on December 12. The event follows Hotelier’s inaugural conference, The Great GM Debate, held in Dubai on September 29, which attracted close to 200 general managers and industry partners. So great was demand for the event — the first of its kind designed specifically for hotel general managers — that Hotelier decided to roll out the concept across the region, with Marriott Riyadh selected as the venue for the first event in KSA.
Saudi Arabia suffers from a shortage of hotel units, and is developing its hospitality sector to meet growing demand for domestic, intra-regional and religious tourism. The Saudi Government Commission for Tourism and Antiquities’ (SCTA) long-term vision for the country’s hospitality sector estimates visitor numbers will nearly double from 47 million in 2008 to 88 million by 2020, while the number of hotel rooms would rise from 117,097 to 254,310, and apartment units would increase from 101,544 to 185,853.
To support this, there is significant investment being undertaken in tourism infrastructure, including airport expansions, high-speed rail lines and public-private partnerships, whilst visa procedures have been eased for non-religious and business visitors.
Underlining the potential for tourism development in Saudi Arabia, is that the economy has not slowed, despite the global downturn. The 2010 government budget is the biggest ever, and tourism is looming large on the national agenda. There is little doubt that the Kingdom’s hospitality industry has moved into unchartered territory.
As a result, many international chains are looking to expand their presence in the region, such as InterContinental Hotels Group, Marriott, Rezidor and Hilton, while home-grown companies like Rotana and Hospitality Management Holdings, not to mention new brands Shaza and budget brand Premier Inn, have also identified the Kingdom as a place for growth.
For general managers already operating hotels in Saudi Arabia, and hoteliers looking to take up roles in the market as their company expands there, the opportunity is there for them to make their mark, but at the same time, with great growth comes many challenges. General managers need to understand this unique market and examine every part of their operation, searching for ways to improve margins, maximise revenues and raise standards.
The KSA GM Debate will provide a forum for them to do just that via five interactive panel sessions, covering everything from working with government and Saudisation to F&B outlets and revenue management strategies, along with several networking opportunities.
Government support
The event has the support of SCTA, with Eng. Ahmed Al-Eissa, director general of licensing and quality at SCTA, welcoming guests with the keynote address and joining the Working with Government panel session, along with hoteliers Amine Moukarzel, SVP MENA, Golden Tulip; Bani Haddad, vice president development, Wyndham Hotels; Makram El Zyr, vice president, development, Rotana; and Hussein Hatata, vice president hotels division, Al Khozama Management Company (AKMC).
Speaking to Hotelier ahead of the Debate, Al-Eissa said SCTA had already been working to further its support of hoteliers in the Kingdom.
“SCTA is supporting the sector by improving the quality through the new classification criteria and re-classifications — professional and global operators appreciate the fact that the accommodation sector landscape improved in terms of the profile of operators — and at the same time, the outlining of notorious mal-practitioners,” said Al-Eissa.
“The Provincial Tourist Officers (PTO) inspectors, representing a permanent source of information flow and follow up, guide the operators and investors with the newest information and regulations.”
Al-Eissa explained that a Hotel Keepers Association had been set up, upon which SCTA only had a chair position, because “it is highly important that the sector develops the trade association by and through themselves”. To support this, he said that the SCTA had run several workshops with accommodation owners and operators, in particular in relation to new regulations and best practices.
“It is highly important to have a continuous open dialogue with the sector, in order to guide and enable the sector to have the utmost self control and sufficiency,” said Al-Eissa. “The future importance of the accommodation sector and of tourism in general as main drivers of the Saudi Arabian economy and employers cannot be stressed enough.”
Panellist Hussein Hatata of AKMC agreed that the communication between hoteliers and the government was enabling industry experts to have more involvement in decisions.
“The hospitality industry in the Kingdom of Saudi Arabia is currently experiencing a transformation due to SCTA setting minimum standards and specifications for classifications and ratings, and tremendous achievements have been made in this regard as a first phase,” said Hatata.
“There is an existing mechanism for working together through SCTA’s Consulting Committee, as well as Hotel Committee in the Chamber of Commerce. These committees are presently producing excellent results. Based on the topics and projects being discussed, SCTA is involving more professionals in the decision making process and also supporting the committees with adequate study and research through international sources and criteria,” he added.
“Moving forward, I wish that SCTA will soon launch to the public the specifications for five-star plus classification so the new entrants to the market are aware of the requirements that are to be in place right from the beginning, as many hotel projects are presently in progress,” said Hatata.
He also praised SCTA’s encouragement of Saudi Nationals to join the hospitality industry, a topic that will be addressed by Abdullah Al-Weshail, general manager, National Project for Tourism Human Resource Development, SCTA, in his panel session at The KSA GM Debate.
Al-Weshail said that SCTA had developed a five-year plan in order to reach 80% Saudisation in hospitality, starting with 32% in the first year in 2011.
The challenges in achieving this were “a shortage of training and educational institutions, qualified individuals, low wages and a dependency on expats as cheap labour”, said Al-Weshail.
Still, the incentives for hoteliers to reach this figure are there; with SCTA organising professional training programmes and securing funding for such training, along with subsidising wages for the first two years for a Saudi National through the Human Resources Development Fund (HRDF).
These opportunities, and many more, will be discussed and debated in detail at The KSA GM Debate. To find out more or register your interest in attending, please contact Michael.mcgill@itp.com. If you are interested in sponsoring The KSA GM Debate, please contact diarmuid.omalley@itp.com or sarah.worth@itp.com