Five leaders in the Middle Easts mid-market hospitality industry convened at Rove Trade Centre, Dubai to discuss relevant issues facing the sector, helping to set the agenda for the Hotelier Express Summit 2017.
The VAT implementation – how to deal with it and its impact?
Guminski: We’ll have to absorb it. You can’t pass this on to the customers. There’s a talk apparently between DTCM [Dubai Department of Tourism and Commerce Marketing] and hoteliers about a way of incorporating VAT into existing charges. We had a meeting recently where there was talk about putting it on top of the tourism dirham. We don’t know how it’s going to go or when it will start. It will change the profitability model for sure. The reason why we’re here is because we’re still making money. I think the luxurious hotels had a really good time in Dubai before mid-scale showed up in the market. And our products, we are really stepping up so that’s why the people’s perception of mid-scale hotels is also changing. When you think of mid-scale before, it always seemed a bit tricky. Now, when you walk into a mid-scale hotel, apart from the absence of a concierge – you don’t really feel the difference.
De Graaf: I think this is something that we will try to put on top, not to absorb it. That’s the direction we want to go – where the learnings about the implementation of the service charge, the implementation of the tourism dirham, can be applied. In the end, it was absorbed and accepted. Is the market willing to absorb and take that next step again? That of course is the difficult part. But by giving in straightaway and saying, ‘we absorb it’, from my perspective, is not the right way to go.
Poppe: I think we might go with a mix between the two. What you usually do with contracted rates is put it on top, usually an easier sell from what I’ve seen in other countries. And then you’ve got customers who book online and that’s where you have a mixed bag. You price what you price online, right? And there you’re going to have some factor of absorbing it. That’s why I think it’s not just one way. For sure it will drive up the city rate.
What other issues affecting mid-scale hoteliers should be included in the agenda for Hotelier Express Summit 2017?
Bridger: It would be nice to have the perspective of DTCM about the ‘Dubai 2020’ vision and the methods and ways that mid-scale hoteliers can do to support the vision. Employee engagement is another good topic as it is related to Dubai 2020. Also, it would be good to touch on benefits and career opportunities for mid-scale hoteliers. VAT implementation should be on the agenda as well.
De Graaf: We should talk about what we can do in educating the market: what is a mid-scale, the differences between upscale and mid-scale and managing the guest expectations, which is sometimes unrealistic because people don’t understand what we are trying to achieve.
Poppe: We need to talk about the industry talent pool with DTCM and the authorities. The industry depends so much on importing talent. There are not enough hotel schools and the burden of education is on the hotel companies.
De Graaf: Again, education. This should also touch on a sense of pride among hotel employees about working in mid-scale. There are even more opportunities, with different products and different value propositions. I fundamentally disagree that luxury is a superior place to work. It all depends on where the employee works best.
Additional coverage of the Hotelier Express Summit 2017 Advisory Panel can be found on www.hoteliermiddleeast.com/hotelier-express.
Hotelier Express would like to thank the members of the Summit Advisory Panel 2017:
Time Asma Hotel, Dubai general manager Ghada Mahgoub
Rove Hotels director of operations Paul Bridger
Hilton Garden Inn Ras Al Khaimah general manager Remmie de Graaf
Premier Inn Dubai International Airport Hotel & Premier Inn Al Jaddaf general manager Pawel Guminski
Smartotels Hospitality International chief operating officer Siegfried Poppe
EVENT INFORMATION
Hotelier Express Summit 2017
Wednesday, 22nd November
Grosvenor House, Dubai, UAE
A one-of-a-kind event that brings together hospitality professionals from across the Middle East’s midlevel, budget and serviced apartment market to discuss and debate the unique challenges and opportunities this sector possesses. The Hotelier Express Middle East Summitprovides the ideal forum for hoteliers to step back and reflect on how they are going to tackle key operational challenges, meet customer expectations and boost their bottom line.
CONTACT DETAILS:
For event registration or speaking opportunities, contact Louby Maktari, conference producer:
Email: louby.maktari@itp.com
Tel: +971 4 444 3578
For event sponsorship opportunities, contact Stephen Price, group sales director:
Email: stephen.price@itp.com
Tel: +971 4 444 3246
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