THE LUXURY DEBATE: Is the market saturated?

How many more luxury hotels can the Middle East take?

Andrew Humphries, regional vice president & general manager, Yas Viceroy, Abu Dhabi: There is certainly a need for the market to rebalance in terms of five-star, four-star and three-star products to reflect the needs of the consumer, and that means more four-star and three-star products.

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Ian Philips, GM, Oceanic Resort & Spa: It requires constant evaluation of your own product and for you to be honest with yourself regarding your own standards. You need to understand the market and what your competition are offering, after all this it is down to your service delivery and marketing to ensure your message is out there and your guests come back to you.

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Robert El Khoury, DoSM, Jumeirah Zabeel Saray: Dubai has over 600 hotels with nine leading luxury hotels based on Palm Jumeirah alone, the competition is therefore strong, but hoteliers also work together to achieve Dubai’s 2020 vision of 20 million visitors and therefore we cannot be saturated with luxury hotels.

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Michael Marshall, chief commercial officer, Minor Hotel Group: The number of luxury hotels and resorts in the GCC continues to increase, as does the demand for these properties in the region. However, the demand for the upscale segment is also increasing and MHG is actively exploring opportunities in the GCC market for AVANI Hotels & Resorts, our dynamic upscale brand which we are looking to expand across Asia, the Middle East and Africa.

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Julian Ayers, VP of India and the Middle East, Alila Hotels & Resorts: In Oman we are witnessing a very measured approach to tourism via the government, with Omran, the government owned tourism development company, at the forefront of the industry and leading by example.

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Vincent Mercurio, GM, The Address Dubai Mall: There is always a market for both four- and five-star hotels, and it is always the traveller who will choose which brand and level of service is right for them. Luxury has a price and guests will pay for it, but such providers must be consistent and committed to service delivery.

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Rania J. Keedy, DoSM The Ritz-Carlton, DIFC: Five star facilities and even exceptional service are no longer enough to appeal to the global traveller, as with such a crowded market here in Dubai and across the region, hotels with luxurious facilities are in abundance. Our guests are increasingly looking for new, unique and memorable experiences, and these are what we aim to provide at The Ritz-Carlton.

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Holger Schroth, GM, Emirates Palace: Luxury experiences come with a high price tag. As a result, luxury consumers want to feel secure with their purchase. We enjoy many repeat customers because we have built their trust by continuously delivering the best service. The personalised service that we offer at Emirates Palace, where we have almost five employees for every guest, is what brings people back time and time again.

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Tarek Shehata, DoSM, Wyndham Grand Regency Doha: In recent years the development of high quality four-star properties with competitive rates represents a strong competition for five-star properties, especially since the global economic downturn that forced major corporations to consider cost cutting and become rather price sensitive. Nevertheless, no matter the rates, quality of service remains the main indicator of guests’ selection and the success of any hospitality operation.

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Ashraf Helmy, general manager & area business development manager, Iberotel Miramar Al Aqah Beach Resort: I do not agree that luxury hotels should compete with the four-star hotel market for a number of reasons. Luxury hotels should be competing amongst each other to have better standards and to keep their guests loyal. If they are going to compete with four-star hotels the results will be disastrous as they will lose income and they will not be able to pay for luxury costs.