Regional leaders discuss nationalisation at AHIC

Regional leaders at the Arabian Hotel Investment Conference discussed the issues and challenges facing the industry’s nationalisation policies.

Speaking at a panel about game changers and hot topics in the industry, Guido de Wilde, senior vice president of operations, Middle East, for Starwood Hotels and Resorts, agreed that nationalisation is a valid policy. “Our concierges should be locals because who can talk better about their destination than somebody who has grown up here or who was born here,” he said.

However, the panel agreed that there was a need for more training and to generate awareness about the industry as a feasible career choice for nationals.

Alex Kyriakidis, president and managing director Middle East & Africa, Marriott International, agreed that nationalisation is here to stay. “It started in Saudi, it spilled over in the UAE, and it’s in Kuwait, in Oman. It’s pervasive; it’s the right thing to do. The wrong thing to do is to put a number on it or a percentage on it like a sledgehammer,” he said, especially while the national population still requires training.

“What is actually required is a partnership between the industry and top down from government to say our industry is a legitimate industry for Gulf nationals. This is the challenge,” he explains. “If you stop a Gulf national and ask them to list the top five industries that they would like to be employed with, they would start with government or energy or financial services and so on. This industry would not feature. However, if like here, HH Sheikh Mohammed stands up and says, ‘tourism is the way we are going’ and encourages and urges schools and universities to make it a legitimate profession for the nationals… that is the kind of partnership we need, and we can all get behind it as an industry. It’s coming and it’s coming right across the gulf.

According to Rudi Jagersbacher, president Middle East & Africa, Hilton Worldwide, training and developing skills is key. “It’s extremely difficult particularly when you have a large pipeline and trying to come to that consensus in terms of training. We have signed up with 11 schools with a fast track system. We really try to do our very best to try and educate the people because we really would like to have general managers who are Saudis in our businesses as in other countries and therefore it is our responsibility to make sure we can fulfil this task,” he said.

Pascal Gauvin, chief operating officer, India, Middle East & Africa for IHG agreed the onus is on the operators when it comes to training local staff. “This industry is a people industry and without the right service and skills of the people we can’t continue to operate a hotel. We don’t wait to have people come to the hotel. We have the IHG academies, which partners with schools or universities on a different level. They can come to the hotel and see what it is and then go back and think about a career in the industry,” he said.

Jagerbascher also pointed out the need for owners to be more welcoming of national staff. “I think a lot of work needs to be done to have trust and confidence to see there are people who can actually come out and deliver the kind of service which is expected,” he explained.