LIVE FROM THE HOTELIER QATAR GM DEBATE 2012

The GM Debate returns to Qatar for the second year, pictured is last year's debate

09:30: THE PANEL: SPOTLIGHT ON THE FUTURE
MODERATOR: Peter Goddard, MD, TRI Hospitality Consulting

PANNELISTS:
Simon Casson, regional VP and GM, Four Seasons Hotel Doha
Hafidh Al Busaify, GM, InterContinental Doha
Andreas Searty, GM, Hilton Doha
Safak Guvenc, area manager Qatar and GM, W Doha Hotel & Residences
Giorgio Lanfranchi, GM, Millennium Hotel Doha

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QUESTION: How will increased supply and competition effect Doha's existing hotels? 

Four Seasons - Simon Casson: There is going to be an imperative for older properties to already have plans for refreshment.

There will be an impact, some challenges over the years as demand struggles to keep up with supply. The strong hotels will be those in good locations who have invested heavily in their properties, but it’s going to be a fight.

Hilton’s Andreas Searty: Our Hilton Doha hotel is opening in a few days time and we will enter the market in a very optimistic way, it’s very well located and has excellent products.

W Doha’s Safak Guvenc: Competition is healthy and will force us to look at operations in a tighter way and manage our costs better.

Different products coming into the market brings diversity - it’s a healthy diversification which will bring more demand.

Yes, we will have some tough years but after two to three years the future is bright for Doha. Doha will be put on the map. It will make us all better operators.

InterContinental’s Hafidh Al Busaify: The diversification is going to make a big difference. Certain hotels positioned well and understanding their customers will do better. But competition is excellent for upping your game.

There are going to be difficult times but Doha is not solely based on the World Cup. It’s got a thriving economy it’s not going to slow down.

DROPPING RATES IS NOT THE ANSWER, SAY HOTELIERS

QUESTION: TRI research shows rates will be the first victim of increased competition, what impact will this have? 

Four Seasons’ Simon Casson: We need to believe in premium level rates in Qatar, no reason rates should be too far behind Dubai.

We have to be somewhat bold as we look ahead and it’s a nervous time. But we have to hold on. Over the past five to seven years Qatar has done a good job of bringing rates from up from $150 to $300 a night, it’s important not to take too many short-term decisions that will hurt the market.

Hilton’s Andreas Searty: Doha has grown occupancies steadily up to 60-65% the growth in development is supporting all our hotels and this means more hotels coming up is supporting the economy.

So we need to focus on what we do well [rather than dropping rates]. By doing that we can attract new segments and business. We could focus on length of stay in Doha to improve occupancy. Currently guests stay for one or two days only, by attracting [business people and their] spouses, more business generated by conventions, the stay increases.

W Doha’s Safak Guvenc: If we start dropping our rates and it becomes a rate war the only one that wins is the consumer. Doha still has room to grow on the rates, but Qatar Airways and QTA are doing the right things to increase demand.

Dropping the rate is the last thing you should focus on; you should focus on personalised service.