Building resilience

Leading industry figureheads highlight the hospitality landscape in the Middle East and discuss their vision for the future of the industry

According to a recent report by hotel market intelligence and global benchmarking company STR, the development of new hotels is on the rise in the Middle East, with prime tourist destinations such as the UAE, Saudi Arabia, Qatar and Oman leading the way. Despite the pandemic headwinds that the global hospitality industry has had to contend with, the future of the hotel industry in the region looks bright. In fact, for many travel and tourism businesses, the pandemic served as an opportunity to build back better.

“While the pandemic has transformed the hospitality industry, it has also made us quicker to adapt to changes and become more resilient in the face of unprecedented times,” said Mark Kirby, Head of Hospitality, Emaar Hospitality Group.

“Our region was one of the first to revive the tourism industry and this was a result of the efficient response from the government while the hotel industry has been outstanding in redesigning guest experiences to incorporate factors like safety, wellness, sustainability and digitisation.”

Now, with travel restrictions and COVID-19 regulations continuing to ease at a rapid pace across the globe, Kirby added that the “reopening of travel and tourism around the world has accelerated the revival of the hospitality industry” with the Middle East paving the path to recovery.

THE ROAD TO RECOVERY

“The pandemic has drastically impacted the world’s economies and changed consumer habits significantly. Since 2021, however, the hospitality sector in this region has been recovering quickly and, today, more than ever, is thriving,” said Guy Hutchinson, President & CEO, Rotana.

“The growth has been supported by an increasing number of key international feeder markets reopening their borders and rolling out effective COVID-19 vaccination programmes. In particular, the impact of Expo has had a very substantial effect on recovery in the UAE, especially for the hospitality industry.”

During the mega event’s six-month run, Expo 2020 Dubai welcomed more than 24 million local, regional and international visitors, highlighting that global events can safely and efficiently take place even amid a pandemic.

Hutchinson added: “Expo came at the perfect time, when demand for a return to international travel peaked and the UAE was already successfully established as a safe, COVID-protected and wellmanaged travel destination.” But the impact has been lasting as Hutchinson believes that the global exhibition also contributed to a greater level of awareness for the emirate of Dubai.

“As we continue on the road to recovery, hotel performance remains extremely positive and we can be very optimistic for the future of the industry in the UAE and the wider region.”

Echoing the sentiment, Kirby pointed out that with the Middle East set to host more global events in 2022 and beyond, “it will continue to attract tourism in the region which will further grow our industry.”

LOOKING AHEAD

“2022 is a promising year for the hospitality industry with hotels’ outlook remaining positive across the GCC,” said Tim Cordon, Area Senior Vice President, Middle East and Africa.

“After two incredibly hard years on people and companies around the globe, there is an overwhelming need to travel again, and the Middle East remains a very attractive destination as the host of leading global exhibitions and events.”

Cordon also pointed out that as countries are relaxing their restrictions, Saudi Arabia, the UAE and Qatar are anticipating an influx of tourists.

“More specifically, this year will welcome the highly anticipated FIFA

Hutchinson commented: “Flexibility is also an important factor for consumers when arranging travel plans, as global travel rules continue to be updated. Guests are looking for hotels to be flexible with check-in and check-out times, updated cancellation policies, free cancellations against local and international restrictions as well as upgrades that allow guests to have a better room to be able to work from and have more space. As travel starts to pick up, companies that adjust to cater for this level of flexibility will lead recovery.”

Kirby added: “We have also seen a rise in wellness initiatives in the industry as guests now opt for wellness experiences close to home – this has also resulted in an increase in domestic travel.

“All these changes combined seem to have a long-term impact on the hospitality sector and the industry is working towards meeting customer requirements with the most efficient and innovative solutions.

“Clearly, the hospitality industry has come back with new strategies and practices that are more customerdriven in terms of experiences and safety, and this will shape the sector’s landscape in years to come.”

Spotlighting the landscape of the hospitality sector in the Middle East, ATM will host two sessions on the Global Stage today, discussing key trends shaping the future of the industry.

Hotel development is on the rise in the region, with the UAE, Saudi Arabia, Qatar and Oman leading the way

World Cup™ in Doha,” he added. And while the event will boost hotel demand in Qatar, the transit hubs in Dubai and Abu Dhabi are also likely to see an influx in visitor numbers around the event.

He further explained: “Increased tourism activations in Jeddah and Riyadh look promising and the pilgrimage season in Makkah and Madinah will further bolster tourism across the region. The Middle East, therefore, continues to be a leading market for us as we plan to reach 100 hotels in the region by 2026, with new developments across all segments.”

Despite the challenges, there are a number of factors coming together at the same time which bode well for the hospitality industry in the Middle East.

TRENDS TAKING SHAPE

While recovery has been rapid in the region, it has certainly not been easy, considering the nature of the pandemic –with sudden alterations in travel restrictions as a result of surges – and, above all, the everevolving nature of the consumer.

As Cordon explained: “Safety continues to be a priority for everyone and we can all accept that travellers worldwide will continue to be much more cautious.”

That is why hotels around the world are working hard to regain customer trust and tailor experiences to make them feel safer while travelling during a global pandemic. With an increase in hotel staff vaccination drives, regular sanitisation of guest rooms and public areas as well as contactless operations for safer experiences, hotels are welcoming guests in larger numbers.

But the changing world has also seen other traveller habits arise. Highlighting the rising number of ‘workations’, Cordon said: “Another global trend we’ve witnessed is the hybrid solutions offering, especially with remote working becoming the new norm, which we believe will remain a key factor for many business travellers across the globe.”