A campaign to recruit, train and retain local associates is currently in incubation and is soon to be launched, however efforts to draw in local talent are often undermined by strict quotas imposed on the hospitality industry by the Ministry of Labour.
“The labour regulations are changing very rapidly and that is causing a stir in the market. Some rules change two or three times a year because the commission is changing, salaries are changing and so on — everyone is suffering.
“We want to rely more on a Saudi workforce and the government also wants this, and they are imposing more and more regulations to facilitate this, but there are challenges that businesses and the government need to resolve together,” he states.
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Nitaqat, a programme introduced in 2011, which classifies Saudi companies into four categories based on their percentage of Saudi employees and their total number of employees, is putting pressure on employers — particularly those in certain industries, such as hospitality, for instance.
The higher the percentage of Saudis in a firm, the more international workers they can hire from abroad.
The programme has changed rapidly with regards to the hospitality industry, with the bar being set higher each time, explains Al Badr.
“We feel as an industry that these changes need to be coordinated with us, and we need to set those limits together rather than the Ministry of Labour setting the numbers for us.
“We find it extremely challenging to fulfil, and not just us — our peers in the industry,” he says.
An additional challenge, is that for the market to expand, more foreign visitors need to be allowed into the country, Al Badr asserts.
“Definitely there’s a big component of local travellers, but once visa restrictions ease, we’ll have more MICE visitors. I think the demand is huge there, but it’s regulated by visas. If the government gives out more visas, our hotels will perform better.”
The fall in oil prices over the past few months is also a dark cloud on the horizon for many. However, Al Badr claims it has not impacted the company as of yet.
“It could be an issue if development projects slow down, and if there isn’t the same demand from business travellers.”
Despite the internal challenges with planning and constructing hotels at the right pace, and the external challenges of Saudi recruitment quotas, visas and the fluctuating oil market, Al Badr is working full-steam ahead on Dur Hospitality’s mission, which essentially, is a simple one.
“We want to be the partner of choice in hospitality and real estate development and hotel operations, adapting international standards with a local spirit,” Al Badr concludes.
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Apr 7, 2015 , USA
Congratulations to Dr Badr Al Badr! Rebranding is one of the most demanding Tasks in our industry; moving from set standards, culture, attitude and behavior - to a new approach, requires lots of stamina, dedication, and new blood.... that helps to create and implement the new Vision. Your new ...
Mar 23, 2015 , Saudi Arabia
Dr. Badr , Clear and Great strategy, definitely , moving in the right direction. All The best. Khaldoun Hayajneh