Suppliers resort to bribery to secure orders

Almost 75% of hotel suppliers reported knowledge of other supply firms using monetary bribes to win business and 10% of suppliers said they might resort to offering bribes in 2014, according to findings from the annual Hotelier Middle East Supplier Survey.

Suppliers reported an increase in approaches for bribes from hotel procurement managers. In 2012 and 2013, only 35% of respondents said they had been asked for a bribe; in 2014, this figure rose to 55%.

Nearly half (46.8%) of suppliers, said corruption, in terms of bribery, was a problem in the Middle East hotel supply sector that was negatively impacting business.

The consensus, according to suppliers Hotelier spoke with regarding the findings, was that bribery was common in the hotel procurement segment, but too often ignored.

“[As an industry] we brush it aside. We ignore it”, said Simon Parke-Davis, chief representative, Rational, adding that the company does not “bribe anyone anywhere in the world”.

However, he admitted: “It’s very rife in this region”.

Rashid B. Bahar, business development manager, TSSC, said he had “lost orders because of it”.

Vishal Tikku, vice president and area director Middle East, Mondel?z International said he relied on “whistle blower lines, off the record hotlines and more”.

“We would not work in a country where we could not work without integrity,” said Tikku.

Click here for the full findings from the Hotelier Middle East Supplier Survey.

See the April issue of Hotelier Middle East for a detailed analysis of the findings on bribery, with comments from suppliers and hotel procurement managers.