Hospitality Business ME | 2014 March

Page 1

DATA Tenders & jobs in a new pull out and keep section

Geberit Monolith

Urban design.

! "# $ %!

!

& '

1

CONTENTS

26

NEWS & DATA 05. Editorial Board Introducing the industry experts advising on the magazine’s editorial agenda 56

06. News 09. Data 18. Hospitality law Hotels and branded residences Bursby and Paul Blakeway

INDUSTRY 37. Gulfood # )*+,

20. DTCM

42. VP Spotlight

!

! -$ .# ( (

PROCUREMENT 22. High-end hygiene

46. On the cover

Keeping the hotel spa spick and span " # $ % ! &

% / 0 - -$ ! 1 2 explain the dual approach to luxury rolled # 3

28. Simply smart

50. In demand

% '

% " . 4 5

34. Supplies & Services $ ( across the region

56. Roundtable ( and agents

# .6# -$ # reaching more guests 42

70. GIBTM preview .( / (

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MARCH 2014

2

PUBLISHING PANEL

PUBLISHER

DIRECTOR OF SALES BUSINESS DIVISION

DOMINIC DE SOUSA

SARAH MOTWALI sarah.motwali@cpimediagroup.com D: +971 04 440 9113 M: +971 (0) 50 678 6182

GROUP COO NADEEM HOOD

COO

SALES MANAGER HOSPITALITY BUSINESS ME

GEORGINA O’HARA

EDITORIAL

GROUP DIRECTOR OF EDITORIAL PAUL GODFREY paul.godfrey@cpimediagroup.com D: +971 04 440 9105

ASSOCIATE PUBLISHER HOSPITALITY DIVISION DAVE REEDER dave.reeder@cpimediagroup.com M: +971 (0) 55 105 3773

JULIE CAULTON Email: Julie.Caulton@cpimediagroup.com D: +971 04 440 9112 M: +971 (0) 56 778 9793

PRODUCTION MANAGER, HOSPITALITY DIVISION VA DEVAPRAKASH

WEB DEVELOPER, HOSPITALITY DIVISION LOUIE ALMA

GROUP MANAGING EDITOR MELANIE MINGAS melanie.mingas@cpimediagroup.com D: +971 04 440 9152

DISTRIBUTION MANAGER ROCHELLE ALMEIDA

PRINTED BY

ASSISTANT EDITOR

Printwell Printing Press LLC, Dubai, UAE

SOPHIE MCCARRICK sophie.mccarrick@cpimediagroup.com D: +971 04 440 9150

PUBLISHED BY

SENIOR GRAPHIC DESIGNER HOSPITALITY DIVISION CHRIS HOWLETT

PHOTOGRAPHER HOSPITALITY DIVISION ANAS CHERUR

ADVERTISING

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Dubai, UAE D: +971 4 440 9100

! " # $%& A publication licensed by IMPZ © Copyright 2014 CPI. All rights reserved.

In association with...

MARCH 2014

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EDITOR’S LETTER

PRICED OUT

E

vents in the UK and Europe over previous weeks have thrown an interesting tangent on the role of the OTA and the power vacuum the sector has filled since the introduction of third party booking sites. The purpose of the rate parity investigation was at odds with the local debate surrounding the role of the OTA, but it wasn’t entirely unlinked. While the UK’s Office of Fair Trading (OFT) was investigating the discounting practices of certain OTA sites and international hotel chains on behalf of the consumer, in the Middle East, it’s the hotels who report feeling the pinch. The ability for OTAs to demand much more from hotels than their predecessors – and in some cases still peers – the TAs, has been felt by the industry the world over. Third party booking sites have sprung up, creating vast databases and achieving the power to dominate the industry and its pricing structures in a way nobody could have predicted. In bygone days, hotels would offer a standard 10% commission to genuine agencies, yet they are more likely today to essentially bribe TAs with bars of gold, diamonds and iPads just to get a look in on the market. Much has been written about rate parity, including whether or not it is – or should be – legal. And the ruling of last month is that within certain parameters

the practice can continue. Gone is the talk of hefty fines for the likes replaced with muted comments that the practice is outlawed in Germany. Coincidentally, in this issue assistant editor Sophie McCarrick speaks to Amadeus MENA VP, Antoine Medawar about the factors motivating OTAs to sell rooms in a certain property. The data collected by Amadeus in the most recent survey (see page 66) shows that when comparing price, payment options, ease of booking, support and commission, agents consider their commission – and the ease with which it is paid – to be the most important factor when selecting guest’s accommodation. Combined, the cumulative impact of these events hint at big changes to come; or at least great unrest should things continue. The behaviour demonstrated throughout the chain is based on nothing more than human instinct and the need to outwit competitors in the business world, but what is almost certain is the OTA is gaining ever more strength. What this means about the future of the industry is unknown, but there are many dots to join together. Do hotels need to become less complacent in their distribution strategies or is there a need to curtail the rise in the prominence of OTAs? MELANIE MINGAS GROUP MANAGING EDITOR

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MARCH 2014

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4

EDITORIAL BOARD

THE INDUSTRY EXPERTS SHAPING YOUR MAGAZINE Hospitality Business magazine’s top industry contacts who assist in guiding the direction of the magazine to create the most relevant content possible

Christopher Hartley CEO, Global Hotel Alliance Chris Hartley is CEO of Global Hotel Alliance (GHA), an organisation based on a business model similar to that of the airline alliances. Chris was one of the pioneers behind the launch of GHA in 2004, and since 2006 he has overseen its development into the world’s largest alliance of independent hotel brands. Today GHA has 19 member brands and over 345 hotels in 61 countries.

Mark Fraser Managing Partner, Taylor Wessing Mark Fraser is Managing Partner of Taylor Wessing (Middle East) LLP and head of its construction and dispute resolution practices. Mark has advised on a range of development and infrastructure projects in the Middle East, Asia and Europe covering the hotel and entertainment, transportation and energy sectors.

Karyn Williams-Sykes Director of Professional Training and Development, The Emirates Academy of Hospitality Management In the past six years in professional training and development, Williams-Sykes has designed, developed and delivered a wide range of soft skills training to many organisations, both within and beyond the hospitality industry and holds an MBA from the University of Leicester.

Tatjana Ahmed Chair and founding member, UAE Professional Housekeepers Group and executive housekeeper Grand Hyatt Dubai Tatjana Ahmed is a member of the Council of Experts for Hyatt International, assisting hotels in the South/West Asia region during the pre-opening stage to set up the Housekeeping Department and implement brand and procedural standards. An award winning housekeeper, Ahmed is the founding member of the UAE Professional Housekeepers Group.

Martin Kubler Founder, Iconsulthotels FZE Martin Kubler is a hotel GM turned hospitality and service industries consultant with more than 15 years’ executive-level management experience in 3-,4-, and 5-star hotels in Europe and the Middle East. Martin runs Iconsulthotels FZE, an ultra in assisting small and medium hospitality and service industries companies and international hospitality and service industries professionals.

Fabian Schmittmann President, AICR Dubai Section Fabian Schmittmann leads the Association

Managers of 4- and 5-star hotels. Founded in 1964 it has developed into an international fellowship with sections in 18

! " #$% founded in 2005 and has grown to become & ' * % Division Executives working and living in the city. Schmittmann is also Director of Front + "

MARCH 2014

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6

1/

NEWS

4.9% CAGR for Bahrain tourism revenue

Bahrain’s tourism revenues are to grow by 4.9% CAGR over the next decade, according to data from World Travel and Tourism Council (WTTC). The Gulf state generated approximately $520m in tourism revenues in 2012, increasing 13% in 2013, prior to maintaining the 4.9% annual growth rate forecast. Travel and tourism’s share of Bahrain’s total national investment will increase from 7.8% in 2013 to 8.7% in 2023, the WTTC claims. Bahrain is developing more hotels to increase its available room stock to over 12,000 rooms by 2015, after Shaikh Khalid revealed hotel room bookings surpassed the 10,000 mark in 2013, up from 9,000 rooms in 2012, marking a rise of 11%. Around 75% of Bahrain’s inventory is dominated by hotels focused on the luxury sector, with hotels such as the 260 room Wyndham Grand Manama which recently opened its doors, in addition to a 50-storey JW Marriott which is scheduled for completion in 2016.

1

2 / Emirates Palace Gigabit guests Middle East to deploy a wireless network of 802.11ac allowing guests to use gigabit wireless across the sprawling property, tackling the demand created by mobile devices. Commenting on the network, supplied by Aruba, Mehmet Akdeniz, director of IT and AV at the property, said: “We remain ! " experience. When we noticed that guest usage of bandwidthhungry mobile applications was becoming a norm, we committed to deploying a solution that would meet their high # # & & opted for Aruba’s gigabit Wi-Fi solution.�

2

3 / ‘Dry MICE’ in demand Demand for hotels which can cater to MICE congresses, but that do not serve alcohol, is rising, according to research released ahead of GIBTM. ' * Doha, which also have Shariah compliant destination * & + # ' / ; / <= ' > * " = > ! & pool timings for men, women and children, all food and beverage has to be Halal, with modest dress codes throughout ! ? # Lois Hall.

For more on this year’s GIBTM, turn to page 70

MARCH 2014

3

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NEWS

7

4 / $0.35 dividend per share, Starwood Starwood Hotels and Resorts Worldwide is to pay shareholders addition to a share of $500m in net cash from the St. Regis Bal Harbour sale. continue to return cash to its shareholders, CEO Fritz Van Paaschen stated: “Over the past 10 years, we have returned nearly $10 billion of cash to shareholders through regular dividends, stock buybacks and special dividends.� ! " " # "" % & 28, 2014 to stockholders of record on March 11, 2014. ! " ' () # "" " % paid on March 28, 2014 to stockholders of record on March 11, 2014.

4

5

5 / Kuwait’s 10,000 room pipeline Kuwait is to invest “billions� in its tourism and leisure sectors with a view to opening a further 10,000 new hotel rooms by 2015. Part of plans to attract one million tourists by the same

" " % 3 # * " 6# Association (KHOA) equate to a near 33% increase in supply. InterContinental Hotels Group (IHG) has four properties planned for Kuwait and Millennium and Copthorne recently signed a deal to manage the new 307 room Millennium Hotel and Convention Centre in Kuwait City. Kuwait Municipality also has unveiled plans to develop an array of luxury properties. Supporting the ambitions, the country will spend $13bn on + " # ? to increase its capacity to 13m by 2016. Other funds are

#

+ the tune of $460m.

6 / Award winning digital HR integration

6

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French operator chain, Accor, has won a number of " * "" recruitment. % + %- # " " "" " * ( / # " named as having the best recruitment website in Europe and Asia; and was named third place in the Career Websites category. In addition, Accor received a top 10 ranking for its % " ( + % ( ( The rankings are the result of a survey covering various criteria on the HR recruitment and online presence of 472 companies around the world.

MARCH 2014

FIGURES

Pull and tear here

IN FIGURES 7M Tourists per year, growth projections for the State of Qatar, discounting the 2022 World Cup

33.3% Decline in Mecca ADR, possibly due to ongoing casses of MERS virus, authorities say, across Saudi Arabia

65.3%

Decline in RevPAR, Cairo city November 2013, according to EY Hotel Benchmark

13% Value of sales growth, Shangri-La, 2012. The strongest recorded growth in the luxury market

2,950 $0.35

New branded hotel rooms added to Dubai supply, 2013

2018 Construction on Yas Island due to complete, pg 50

hospitalitybusinessme.com

Dividend per share, reported by Starwood in in its qaurterly report, pg 6

42.1% Of surveyed travel agents believed they their clients booked, pg 66

MARCH 2014

9

10

GLOBAL DATA

BENCHMARK MIDDLE EAST REPORT Monthly performance overview of leading hotels in the Middle East, including international branded and operated properties across the 5 star and 4 star segment for the period December 2012 - December 2013 Markets with the largest variance on a per month basis

Dubai overall monthly performance

% Occupancy for Sharm El Shaikh Hotels

% Occupancy for Dubai - Overall Hotels Occupany %, November 2012 - November 2013

Occupany %, December 2012 - December 2013

100

90

Occupancy

70

76 69

64

90

80 72 65

64

62

63

60

57

50

57

60

45

40

20 10 Mar

Apr

May

83

Jun

Jul

Aug

Sep

Oct

Nov

83

79 70

0

Dec

86

82

75

51

40

10 Feb

86

50

30

Jan

90

60

20

Dec

90

70

30

0

90 83

80

Occupancy

80

Dec

Jan

Feb

Mar

Apr

May

Months

Jun

Jul

Aug

Sep

Oct

Nov

330

333

Dec

Months

Average room rate for Hurghada (US$)

Average room rate for Dubai - Overall hotels (US$) Average room rate, November 2012 - November 2013

33

32

41

41

34

300

34

33

30

26

25

25

20

328 298

313

305

243

250

192

200

213

221

179

150 100

15 10

50

5 0

291

40

Average room rate

41

39

40

Average room rate

313 46

45

35

350

Average room rate, December 2012 - December 2013

50

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

0

Dec

Dec

Jan

Feb

Mar

Apr

May

Months

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Months

Rev PAR in Doha (US$)

Rev PAR in Dubai - Overall hotels (US$)

Room vield, December 2012 - December 2013

Room vield, November 2012 - November 2013 350

250

190 172

Room yeild

300 201 183

175

170 146

150

250

171 153

143 119

295 274

269

267

251 202

200

152

0

149

165

91

100 50

286

243

150

102

100

282

Room yeild

200

236

50

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Months

Dec

0

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Months

MARCH 2014

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11

GLOBAL DATA

!"#$ %& '%( )* $ ! # ) + %, %$ !" " $+ % ! -/01 '%% !")2 3 Occupancy

Average room rate

Rooms yield

Currency

2013%

2012%

Change in % points

2013

2012

Change

2013

2012

Change

US$

37.0

37.0

0.0

208

203

2.3%

78

76

3.6%

US$

25.0

30.0

-5.0

80

89

-10.4%

20

27

-26.2%

Bahrain Manama Egypt Cairo — City Cairo — Overall

US$

26.3

31.7

-5.4

81

88

-8.5%

21

28

-24.0%

Hurghada

US$

60.0

62.0

-2.0

25

32

-20.7%

15

20

-22.6%

Sharm El Shaikh

US$

60.0

69.0

-9.0

44

50

-12.5%

26

34

-23.1%

US$

58.0

52.0

6.0

151

151

0.4%

88

80

10.2%

US$

47.0

53.0

-6.0

324

251

29.1%

155

133

16.5%

US$

52.0

52.0

0.0

180

182

-1.1%

94

96

-1.6%

US$

77.0

76.0

1.0

218

224

-2.7%

169

171

-1.3%

US$

62.0

63.0

-1.0

245

301

-18.7%

153

190

-19.5%

Jeddah

US$

73.0

69.0

4.0

253

248

1.9%

186

173

7.5%

Madina

US$

74.0

65.0

9.0

184

179

2.9%

138

118

16.8%

Makkah

US$

77.0

70.0

7.0

250

249

0.6%

193

176

9.8%

Riyadh

US$

65.0

58.0

7.0

212

226

-6.6%

139

133

5.0%

Abu Dhabi

US$

80.0

81.0

-1.0

202

199

1.2%

163

162

0.8%

Al Ain

US$

74.0

69.0

5.0

150

145

3.9%

112

101

11.0%

Dubai — Beach

US$

76.0

83.0

-7.0

428

390

9.7%

326

325

0.1%

234

227

3.3%

203

189

7.5%

305

291

4.8%

251

243

3.4%

Jordan Amman Kuwait Kuwait Lebanon Beirut Oman Muscat Qatar Doha Saudi Arabia

United Arab Emirates

Dubai — City

US$

86.0

83.0

3.0

Dubai — Overall

US$

82.3

83.4

-1.1

Notes 4'% $ ) ! '+ ' % '! !45 6 % 7 ( % 8 !" ' 2 % ) ! % )% $ 5 6 '9 7 ( % 8 !" ' 2 '9 "#* '9 ) ! '9 + % $ !

hospitalitybusinessme.com

MARCH 2014

Material supplied by

12

JOBS

JOB WATCH Looking for a new challenge? Let us help. All jobs can be applied for through www.Hozpitality.com

INDUSTRY: Hotels Clubs and Spas

Department: Sales and Marketing/

DEPARTMENT: Food and

PR

Beverage Service

LOCATION: United Arab Emirates

LOCATION: ME/GCC (Except

(UAE)

UAE)

SALARY DESCRIPTION: AED

SALARY DESCRIPTION: 60000 net

10,000 to 12,000 plus executive

annually

START DATE: ASAP

START DATE: ASAP

EXECUTIVE CHEF

projects

RECRUITER: CHA International

RECRUITER: Apt Resources, Dubai

INDUSTRY: Hotels Clubs and

LOCATION: United Arab Emirates

ADDITIONAL DETAILS: We are

ADDITIONAL DETAILS: Candidate

Spas, Restaurant/ Bars and cafĂŠ

(UAE)

looking for a European director of

must have a minimum of two

DEPARTMENT: Food Production/

SALARY DESCRIPTION: AED

food & beverage with a passion

years’ experience in a similar

Kitchen

14000

for quality and excellence for

position, knowledge of the Middle

LOCATION: Africa, Europe, ME/

START DATE: ASAP

5-hotel with 449 rooms and a

East market, excellent leadership

GCC (Except UAE)

RECRUITER: Hozpitality

large F&B operation with 11

and interpersonal skills, and must

SALARY DESCRIPTION: US $55-

Consulting

outlets and banquet facilities.

be deadline and budget oriented.

65k

ADDITIONAL DETAILS: The

START DATE: ASAP

candidate will be offered a

FEMALE TRAINING MANAGER

FINANCE CONTROLLER

RECRUITER: CHA International

competitive salary, one bedroom

INDUSTRY: Hotels Clubs and Spas

INDUSTRY: Hotels Clubs and Spas

ADDITIONAL DETAILS: The

apartment, medical and yearly

DEPARTMENT: Human Resources

DEPARTMENT: Finance and

position offers an excellent expat

(HR), Training and Development

Accounts

LOCATION: ME/GCC (Except

LOCATION: United Arab Emirates

package with salary in the US $55-65k range plus medical,

DIRECTOR OF SALES

UAE), United Arab Emirates

SALARY DESCRIPTION: Attractive

dental, housing, etc. Europeans

INDUSTRY: Hotels Clubs and Spas

SALARY DESCRIPTION: 6000 to

salary

are highly encouraged to apply.

DEPARTMENT: Sales and

7000

START DATE: ASAP

For immediate consideration,

Marketing/PR

START DATE: ASAP

RECRUITER: One to One Hotels-

please submit your detailed and

LOCATION: United Arab Emirates

RECRUITER: Hozpitality

the Village

up-to-date CV including a short

SALARY DESCRIPTION: Attractive

Consulting

ADDITIONAL DETAILS: We are

portfolio of your work via email

Additional details: We are looking

to nancy@cha-international.com.

START DATE: ASAP

for a female training manager for

controller in Abu Dhabi. The

In the subject line please write

RECRUITER:

a renowned international hotel

candidate must have 3 to 5 year’s

“Executive Chef 4792NWOD� for

Additional details: A 5-star hotel

in Doha. Candidate should be

similar experience, good computer

reference.

in Dubai is looking for a director of

European and Arabic language is

skills, be extremely active and

sales. Suitable candidate should

preferred.

prompt, able to sustain pressure and practice good delegation.

FRONT OFFICE MANAGER

be locally available with at least

INDUSTRY: Hotels Clubs and Spas

2 years’ experience as assistant

EXECUTIVE CHEF

DEPARTMENT:

director of sales and ready to take

INDUSTRY: Hotels Clubs and Spas

EXECUTIVE HOUSEKEEPER

Rooms Division

up the new challenge. Preferable

DEPARTMENT: Food Production/

INDUSTRY: Hotels Clubs and Spas

LOCATION: United Arab Emirates

Arabic speaker.

Kitchen

DEPARTMENT: Housekeeping

LOCATION: ME/GCC (Except

LOCATION: United Arab Emirates

SALARY DESCRIPTION: Attractive salary

SECURITY MANAGER

UAE)

SALARY DESCRIPTION: Attractive

START DATE: ASAP

INDUSTRY: Hotels Clubs and Spas

SALARY DESCRIPTION: 15,000

RECRUITER: One to One Hotels -

DEPARTMENT: Security and

to 18,000 plus other executive

START DATE: ASAP

the Village

Transport

RECRUITER: Bin Majid Hotels &

ADDITIONAL DETAILS: We

LOCATION: United Arab Emirates

START DATE: ASAP

Resorts

currently have an opportunity

SALARY DESCRIPTION: Attractive

RECRUITER: Apt Resources,

ADDITIONAL DETAILS:

salary

Dubai

The executive housekeeper

manager holding a solid career

START DATE: ASAP

ADDITIONAL DETAILS: For a

coordinates, directs and

background preferably in UAE.

RECRUITER:

4-star property in Jeddah, KSA

supervises the functions of all

The FOM will join a team of

Additional details: We are looking

(120 rooms). Candidate must be

housekeeping personnel at Bin

dynamic executives and will

for a security manager for an

western educated, have three

Majid Hotels & Resorts.

be required to have previous

international hotel in Dubai.

years’ experience or more in a

Similar experience needed in

similar role, and have a multi-

COMMERCIAL PROJECTS

hotels.

star hotels. Candidates with

cuisine background.

MANAGER

experience in UAE preferred. ENGINEERING MANAGER

INDUSTRY: Airlines, Travel HOTEL BUSINESS DEVELOPMENT

DEPARTMENT: Travel

INDUSTRY: Hotels Clubs and Spas

DIRECTOR OF FOOD &

MANAGER

Management

DEPARTMENT: Engineering and

BEVERAGE IN CAIRO

INDUSTRY: Hotels Clubs and Spas

LOCATION: United Arab Emirates

MARCH 2014

hospitalitybusinessme.com

13

JOBS

SALARY DESCRIPTION: Attractive

GUEST RELATIONS MANAGER

GUEST AFFAIRS MANAGER

DUTY MANAGER

START DATE: ASAP

INDUSTRY: Hotels Clubs and

INDUSTRY: Airlines, Travel

INDUSTRY: Hotels Clubs and Spas

RECRUITER: Etihad Airways

Spas

Industry

DEPARTMENT:

ADDITIONAL DETAILS: The

DEPARTMENT:

DEPARTMENT: Customer Service,

Rooms Division

commercial projects manager will

Rooms Division

Travel Management

LOCATION: United Arab Emirates

support the senior manager or

LOCATION: United Arab Emirates

LOCATION: United Arab Emirates

(UAE)

strategic projects in evaluating

(UAE)

(UAE)

SALARY DESCRIPTION:

and implementing high value,

SALARY DESCRIPTION: AED

SALARY DESCRIPTION: Attractive

Competitive and based on

strategically important commercial

8,000 plus AED 1,500 transport

projects, advising on and

START DATE: ASAP

START DATE: ASAP

coordinating commercial initiatives

START DATE: ASAP

RECRUITER: Etihad Airways

RECRUITER: Marjan Island Resort

with our strategic partners,

RECRUITER: Apt Resources, Dubai

ADDITIONAL DETAILS:

& Spa

improving project governance and

ADDITIONAL DETAILS: For an

Requirements include a degree

ADDITIONAL DETAILS: We are

assessment to more effectively

established hotel in downtown

in customer relationship

looking for a Russian and German

utilize organisational resources; to

Dubai, the guest relations

speaking candidate with previous

project manage ad hoc projects

manager must have a minimum

related job experience with seven

hotel experience and knowledge

within timelines and to budget.

of three years’ experience in the

years’ frontline customer service

of the Middle East market is

same role and must be degree

experience in either the airline or

preferred.

ASSISTANT MARKETING

educated. Preferably an Arabic

hospitality industry.

MANAGER

speaker with good command of

INDUSTRY: Hotels Clubs and Spas

English.

DEPARTMENT: Purchase and

EXECUTIVE PASTRY CHEF THAI GENERAL MANAGER

INDUSTRY: Hotels Clubs and Spas

INDUSTRY: Hotels Clubs and Spas

DEPARTMENT: Food Production/

Stores

DIRECTOR OF RESTAURANT

DEPARTMENT: General

Kitchen

LOCATION: United Arab Emirates

INDUSTRY: Hotels Clubs and Spas

Management/ GM

LOCATION: ME/GCC (Except

SALARY DESCRIPTION: AED 5500

DEPARTMENT: Food and

LOCATION: Worldwide, Asia, ME/

UAE)

– 6500 basic salary plus other

Beverage Service

GCC (Except UAE), United Arab

SALARY DESCRIPTION: Attractive

LOCATION: United Arab Emirates

Emirates (UAE)

package

START DATE: ASAP

SALARY DESCRIPTION: AED

SALARY DESCRIPTION: 120,000

START DATE: ASAP

RECRUITER: Apt Resources, Dubai

10,000 plus AED 1,500 transport

Baht

RECRUITER: CHA International

ADDITIONAL DETAILS: For a

START DATE: ASAP

ADDITIONAL DETAILS: An

4-star hotel located in Dubai, UAE.

START DATE: ASAP

RECRUITER: Hozpitality Consulting

executive pastry chef is required

Candidate must have 3 years’

RECRUITER: Apt Resources, Dubai

ADDITIONAL DETAILS: We are

for a 5-star hotel in Kuwait. The

minimum experience in the same

ADDITIONAL DETAILS: The

now looking for a Thai GM who

candidate must by European and

industry working in 4 or 5-star

candidate must have a minimum

have many years of experience in

a pastry chef or executive pastry

properties, should have good

of seven years’ experience in the

GM position and has background

chef currently. Please send your

command of English and ability to

same role, preferably western

knowledge in rooms, sales and

updated CV with recent photo to

manage work under pressure.

educated or a native Arabic

F&B. Salary will be 120,000 Baht.

susanne@cha-international.com.

speaker. CHIEF ENGINEER

PURCHASING MANAGER

INDUSTRY: Hotels Clubs and Spas

CHIEF CONCIERGE

MANAGER

INDUSTRY: Hotels Clubs and Spas

DEPARTMENT: Engineering and

INDUSTRY: Hotels Clubs and Spas

INDUSTRY: Hotels Clubs and Spas

DEPARTMENT: Purchase and

projects

DEPARTMENT:

DEPARTMENT:

Stores

LOCATION: United Arab Emirates

Rooms Division

Rooms Division, Revenue

LOCATION: United Arab Emirates

(UAE)

LOCATION: United Arab Emirates

Management

(UAE)

SALARY DESCRIPTION: Attractive

(UAE)

LOCATION: Asia, ME/GCC

SALARY DESCRIPTION: AED

SALARY DESCRIPTION: AED

(Except UAE), United Arab

!"" #

START DATE: ASAP

6,000 plus all executive hotel

Emirates (UAE)

according to UAE labour law.

RECRUITER: Donatello Hotel

SALARY DESCRIPTION:

START DATE: ASAP

Apartments- Dubai

START DATE: ASAP

Competitive salary

RECRUITER: Apt Resources, Dubai

ADDITIONAL DETAILS: The Chief

RECRUITER: Apt Resources, Dubai

START DATE: ASAP

ADDITIONAL DETAILS: For an

Engineer is responsible for the

ADDITIONAL DETAILS: The chief

RECRUITER: Islamabad Marriott

established international catering

overall upkeep and maintenance

of concierge should have three

ADDITIONAL DETAILS:

company in Abu Dhabi. The

of the hotel at Donatello Hotel

years’ experience in the same role

This position will require the

candidate must have a minimum

Apartments in Dubai. Please

and will be an Arabic speaker.

candidate to maintain complete

of three years’ experience in the

contact hotel’s HR department if

Experience in a 5-star property is

knowledge of and comply with

same industry and be degree

interested.

preferred.

all departmental policies/service

educated.

procedures/standards at all times.

hospitalitybusinessme.com

MARCH 2014

14

TENDERS

Tel: (+971) 2 634 8495 / www.EmiratesTenders.com

CLIENT : InterContinental Hotels Group (UK) COUNTRY : Saudi Arabia STATUS : New Project

TENDERS

NAME : Damac Towers by Paramount Project - Downtown Dubai DESCRIPTION : Construction of

All the latest tenders information you need to know about

Damac Towers by Paramount branded serviced apartments. CLIENT : Damac Properties (Dubai) COUNTRY : UAE CONTRACTOR : TAV Construction (Dubai) : 275,000,000 STATUS : Current Project NAME : Hard Rock Hotel Construction Project - Saraya Development DESCRIPTION : Construction comprising (378) rooms, as well as signature restaurants, entertainment and meeting facilities. CLIENT : Aabar Properties L.L.C (Abu Dhabi) COUNTRY : UAE CONSULTANT : Project Management (Abu Dhabi) CONTRACTOR : Al-Futtaim Carillion (Abu Dhabi) : 180,000,000 STATUS : Current Project NAME : Non-Residential Buildings Construction (Zone K) - Yas Island Development DESCRIPTION : Construction of

NEW & CURRENT PROJECTS

including (29) suites and a royal

including two other apartment

four non-residential buildings

NAME : Staybridge Suites Al

villa.

buildings with (75) luxury

comprising a 23,000 square

Khobar Hotel Project

CLIENT : Oman Tourism

units.

metre school, a 2,500 square

DESCRIPTION : Construction of a

Development Company S.A.O.C

CLIENT : Al Sharq Investments

metre mosque, a 4,400 square

Hotel comprising (189) rooms.

(Omran)

(Dubai)

metre shopping centre and a

CLIENT : InterContinental Hotels

COUNTRY : Oman

COUNTRY : UAE

1,700 square metre recreation

Group (UK)

CONTRACTOR : COWI & Partners

CONSULTANT : RMJM (Dubai)

club.

COUNTRY : Saudi Arabia

LLC (Oman)

: 275,000,000

CLIENT : ALDAR Properties PJSC

STATUS : New Project

STATUS : New Project

STATUS : New Project

(Abu Dhabi)

NAME : W Hotel Muscat

NAME : W Hotel & Residences

NAME : Makkah Holiday Inn

CONTRACTOR : RW Armstrong &

Construction Project

Development Project - Palm

Project

Associates (Dubai)

DESCRIPTION : Construction of

Jumeirah

DESCRIPTION : Construction of

STATUS : New Project

5-star W Hotel Muscat consisting

DESCRIPTION : Construction of

Makkah Holiday Inn comprising

of (290) hotel rooms and suites,

a hotel comprising (360) rooms,

1,238 rooms.

COUNTRY : UAE

MARCH 2014

NAME : Galleria Mall Project

hospitalitybusinessme.com

15

TENDERS

March 9, 2014

- Msheireb Development -

CONTRACTOR : Amjaad

hospitality services.

Downtown Doha

Contracting (Oman)

COST OF TENDERS : ($) 1075

DESCRIPTION : Construction of

STATUS : Current Project

LAST DATE OF SUBMISSION :

NAME : Ministry of Higher

March 11, 2014

a new Shopping Mall comprising

Education (Saudi

approximately (100) stores set

NAME : Dragon Mart Expansion

across four levels of shopping

Project

NAME : Ministry of

and entertainment space.

DESCRIPTION : Carrying out

Higher Education

CLIENT : Msheireb Properties

expansion of Dragon Mart by

(Kuwait)

(Qatar)

building 160,000 square metres

ADDRESS :

COUNTRY : Qatar

of retail space, including a three-

Ministry of

STATUS : New Project

star hotel and multi-storey car

Higher Education

park.

Bldg., Shuwaikh

NAME : Saadiyat Rotana Resort

CLIENT : Nakheel PJSC

Industrial Area

Project

(Dubai)

CITY : Kuwait City

Arabia

Arabia) ADDRESS : King

$273m

Faisal Hospital Street CITY : Riyadh

Dragonmart

11153

expansion project

CODE : 1683 COUNTRY : Saudi

DESCRIPTION : Construction of

COUNTRY : UAE

27130

PHONE : (+966-1) 441 5555/ 464

a 5-star Resort comprising (354)

CONSULTANT : Arif & Bintoak

COUNTRY : Kuwait

4444

rooms and (13) beach villas.

Consulting Architects &

PHONE : (+965) 2225 7501

+966-1) 441 9004

CLIENT : Al-Diya Hospitality

Engineers (Dubai)

+965) 2492 5276

EMAIL : contact@mohe.gov.sa

Investment (Abu Dhabi)

CONTRACTOR : United

WEBSITE : http://www.mohe.

WEBSITE : www.mohe.gov.sa

COUNTRY : UAE

Engineering Construction - UNEC

edu.kw

NATURE OF WORK : Provision of

CONSULTANT : EC Harris

(Dubai)

NATURE OF WORK : Provision of

catering services.

International Limited (Abu

: 273,000,000

hospitality services.

COST OF TENDERS : ($) 5335

Dhabi)

STATUS : Current Project

COST OF TENDERS : ($) 270

LAST DATE OF SUBMISSION :

LAST DATE OF SUBMISSION :

March 11, 2014

STATUS : New Project NAME : JW Marriott Hotel

March 4, 2014

NAME : Mall of Egypt Project

Construction Project - Bahrain

DESCRIPTION : Carrying out

Bay Waterfront Development

NAME : Hail Health Affairs (Saudi

(DHA)

redevelopment of a Shopping

DESCRIPTION : Construction

Arabia)

CITY : Dubai

Mall, which will add a further

of 50-storey JW Marriott Hotel

CITY : Hail

7272

25,000 square metres of gross

COUNTRY : Saudi Arabia

COUNTRY : United Arab Emirates

lease area (GLA).

PHONE : (+966) 6532 6600

PHONE : (+971-4) 800 342 / 219

Futtaim

parking.

FAX : (+966) 6533 4724

7000

CLIENT : Properties (Dubai)

CLIENT : Remza Investment

WEBSITE : http://www.moh.gov.

FAX : (+971-4) 311 3113

COUNTRY : UAE

Company (Bahrain)

sa

EMAIL : care@dha.gov.ae

NATURE OF WORK : Provision of

WEBSITE : http://www.dha.gov.

Majid Al-

NAME : Dubai Health Authority

CONTRACTOR :

COUNTRY :

Khansaheb Civil

Bahrain

Nutrition Services to Hospitals.

ae

CONSULTANT :

COST OF TENDERS : ($) 1335

NATURE OF WORK : Supply of

Yousif Dawood

LAST DATE OF SUBMISSION :

Catering Items.

Al Sayegh

April 3, 2014

LAST DATE OF SUBMISSION :

:

$275m

275,000,000

Mall of Egypt,

Engineering (Dubai)

STATUS : Current

leisure and shopping

Project

redevelopment

Consultants

March 2, 2014

(Bahrain)

NAME : Dubai Electricity & Water

STATUS : New

Authority (DEWA)

NAME : Kuwait University

Project

ADDRESS :

ADDRESS : Building 119, 1st

!! " # ! %

Floor, Khalidiyah

NAME : Nizwa Grand Mall Project

NEW TENDERS

CITY : Dubai

CITY : Safat

DESCRIPTION : Construction

NAME : Savings & Credit Bank

564

5969

of a Shopping Mall comprising

(Kuwait)

COUNTRY : United Arab Emirates

COUNTRY : Kuwait

restaurants, entertainment

ADDRESS : Al Shuhada Street, Al

PHONE : (+971-4) 601 9999 /

PHONE : (+965) 2498 4271

and children’s play areas

Salhiya Area

324 4444

FAX : (+965) 2484 8648

and many shops, in addition

CITY : Kuwait

FAX : (+971-4) 601 9995

EMAIL : info@kuniv.edu

1454

EMAIL : customercare@dewa.

WEBSITE : http://www.kuniv.edu

prayer room, toilets and other

COUNTRY : Kuwait

gov.ae

NATURE OF WORK : Serving of

facilities.

PHONE : (+965) 2241 1301 /

WEBSITE : http://www.dewa.

dinner and lunch.

CLIENT : Ministry of Defence

2241 1302

gov.ae

COST OF TENDERS : ($) 270

(Oman)

FAX : (+965) 2241 5516

NATURE OF WORK : Provision of

LAST DATE OF SUBMISSION :

COUNTRY : Oman

WEBSITE : http://www.scb.gov.

' *

March 4, 2014

CONSULTANT : Amjaad

kw

COST OF TENDERS : ($) 55

Consultancy (Oman)

NATURE OF WORK : Provision of

LAST DATE OF SUBMISSION :

hospitalitybusinessme.com

MARCH 2014

16

MEA DATA

STR GLOBAL: MEA JANUARY 2014 RESULTS Positive performance with 3.3% occupancy rise and 4.8% ADR rise

T

he Middle East/Africa region reported positive performance results during January 2014 when reported in U.S. dollars, according to data compiled by STR Global. The region reported a 3.3% increase in occupancy to 62%, a 4.8% increase in average daily rate to US$187.15 and an 8.2% increase in revenue per available room to US$115.96. well�, said Elizabeth Winkle, managing director of STR Global. “All three key performance metrics were positive, driven by performance in the Middle East. Oman and Saudi Arabia showed positive occupancy, while the United Arab Emirates continued to report positive rate growth. There is still instability in the region, but overall there are signs of improvement. Jordan is now showing some performance growth�.

Performances of key countries in January 2014 Country

Occupancy

% change

ADR

% change

RevPAR

% change

Egypt

42.1%

-11.3%

$60.59

-8.3%

$25.49

-18.6%

KSA

70.5%

+14.7%

$192.6

-6.2%

$135.72

+7.6%

KSA

57.4%

+0.9%

$97.64

+11.0%

$56.09

+12.0%

UAE

82.4%

+1.7%

$257.56

+8.9%

$212.26

+10.7%

*percentages are increases/decreases for January 2014 versus January 2013

YoY Comparisons

LARGEST OCCUPANCY DECLINE

Amman, Jordan up +19.2% to 54.5% Doha, Qatar up +17.1% to 75.1% Cape Town, South Africa up +13.3 % to 73.0% Abu Dhabi, United Arab Emirates up +12.8% to 73.4%

Nairobi, Kenya, down 25%to 42.6%

GREATEST ADR DECLINE Sandton, South Africa, and the surrounding areas down 16.3% to $98.68

Dubai UAE, 12.8% to $308.64

LARGEST REVPAR INCREASE

LARGEST REVPAR DECREASE

Amman up 21.1% to $88.41 Abu Dhabi up 15.6% $112.97

Beirut, Lebanon, down 26.2% to $53.04 Cairo, Egypt down 25.6% to $33.61

Last month we published data from STR Global on page 10 that was wrongly labelled as September 2013. This data was in fact for December 2013.

MARCH 2014

hospitalitybusinessme.com

18

HOSPITALITY LAW

HOTELS AND BRANDED RESIDENCES DEMYSTIFIED Taylor Wessing’s Richard Bursby and Paul Blakeway explain why chains such as Ritz-Carlton, Starwood

B

randed Residences is the term often used to describe private residences, apartments or villas which are branded with the same name as a Hotel. Increasingly, Developers around the world are opting to develop Branded Residences alongside a Hotel development. This relatively recent trend, which started in the USA, is predominantly used in luxury and upscale developments. Ritz-Carlton, Starwood and Four Seasons are notable examples of Operators which have allowed their Brands to be used in this way, with The Address and Vida brands representing relatively new, but very ambitious, examples in the United Arab Emirates.

What’s not to like? Developer, Hotel, Operator and individual owners of Branded Residences. The Hotel benefits from: ∙ A pool of additional customers for its restaurants and bars ∙ The ability to sell â€œĂĄ la carteâ€? services to the Residence owners, such as housekeeping and room service ∙ Cost synergies from Hotel guests and Residence owners sharing the costs of certain facilities and services ∙ Additional room inventory for the Hotel (provided there is a rental pool and interior of the Residence meets Brand Standards). The owners of the Branded Residences benefit from: ∙ ∙ Having the Hotel’s services on tap ∙ The ability to put the Residence into the Rental Pool of the Hotel to earn revenue (i.e. the individual Residence is sold like any other room of the Hotel

Paul Blakeway is an Associate in Taylor Wessing’s Middle Eastern Construction and Dispute Resolution practice and in based in the firm’s Dubai office. He has extensive experience in advising high net-worth individuals and major developers and contractors across the Middle East and Europe.

and the Owner gets a share of the revenue generated) ∙ Perhaps most importantly, the security and quality assurance of the Brand. The Developer benefits from: ∙ The higher prices it can achieve for selling Residences because of the Brand. Research has shown that Branded Residences on average globally achieve a 30% uplift in sales prices when compared to similar

MARCH 2014

Richard Bursby is a Partner in the Corporate and Commercial team in the London office of Taylor Wessing, and heads-up the firm’s International Hotels Group. He is a recognised expert in the Hotel industry, particularly regarding Hotel Management Agreements and has deep experience of advising on numerous

Unbranded Residences

∙

∙

and so use the proceeds to fund the development and reduce its need for

Selling Residences allows the ! trading Hotel.

The Operator benefits from: ∙ Earning commission on sales of the

hospitalitybusinessme.com

19

HOSPITALITY LAW

∙

Residences – these vary greatly in our experience and there is no “norm� though in the USA commissions are often around 2% to 6% of the total sales price, or structured as a higher delivers Potentially higher Base and Incentive fees through the revenue and costs sharing synergies of the Hotel and Branded Residences.

So what’s the catch? If everyone’s a winner, what aren’t there more branded residences?

complexities arise on Branded Residences. First, there is always the tension between the Operator who will not want to be associated with a project that never gets built, or gets cancelled part-way through construction, and the Developer who needs to carry out pre-sales of Residences in order to fund the overall development. Moreover, a buyer of Branded Residences has to pay a deposit

so the Hotel and Branded Residence are not built. There have, unfortunately, been several examples of this in the Caribbean. Branded Resid ences only remain Branded whilst the Operator is managing the Hotel. Typically, a Hotel Management Agreement for a luxury Hotel runs for 20 to 30 years (unless terminated early for breach). The owners of the Branded Residences will be buying a freehold or long leasehold interest (i.e. at least 99 years). What will happen when the Brand changes? What controls will a Residence owner have over the replacement brand? This is something which requires careful consideration at the early stages of a project to ensure protection for all parties long-term. Legal agreements Branded Residences require additional agreements to those needed for a Hotel. The Operator will want to control how its Brand is used to sell the Residences and minimise its liabilities. The Developer and Operator will therefore enter into what is often called a “Residential Marketing License Agreement�. This regulates the use of

hospitalitybusinessme.com

the Brand in the sales and marketing of the Branded Residences and so contains controls on the sales channels

Brand is used in the promotions and prohibits sales in countries which give rise to legal liabilities. For example, sales to US citizens are often restricted as Residences might be “securities� under US law. This would then require all sales and marketing materials for the Residences to comply with US securities laws. There have also been a number of law suits in the USA where individual owners of the Branded Residence have sued the Developer on the basis the revenue earned from the rental pool is less than was represented when the unit was sold. The Operator will often be dragged into the dispute as it has deep pockets and a reputation to lose. The common areas of the Residences, such as the hallways, entrance areas and gardens become the common ownership of the Residence owners and a “Homeowners’ Association� or similar legal entity is created (“HOA�). The day-to-day management of the Residences also needs to be provided for. A Residences Management Agreement will therefore be needed covering three main areas: ∙ First, the provision of services, such as housekeeping, food and beverage, beach clubs etc. to the Residences ∙ Second, the provision of property management services to the Residences, such as landscaping within the residential components and in respect of the common elements such as the hallways and the exteriors of the Residences ∙ ! Branded Residences and HOA such as preparing the budgets for running the Branded Residences, collecting service charges/assessments and enforcing maintenance standards. The Operator wants to ensure individual Residence owners maintain their properties to the required standards, whether these are is no rental pool or to the Hotel’s Brand Standards where there is. Overall, there are many attractions to Branded Residences and we expect to

MARCH 2014

Explained: One of the fastest growing asset classes For Dubai, Branded Residences represent one of the fastest growing asset classes, with sustained growth both before and after the financial crisis of 2008. With an estimated 4,000 units delivered between 2010 and 2011 alone, brands such as Kempinski, Fairmont and Movenpick are all active in the market, with Armani opening the first “designer� Branded Residences in the Burj Khalifa. Home-grown brands Vida and the Address also incorporate Branded Residences into existing hotels (such as the Address Dubai Mall) and new projects such as the 57-storey serviced-apartment Vida Downtown (launched in January 2014) and The Address’ “Fountain Views� residences due to stand at 60-storeys with 280 residences (launched in January 2013). The format is continuing to gain traction in Abu Dhabi and Qatar, and the scope for potential construction is considered substantial given the increasing numbers of tourists in the region and in anticipation of larger events such as the Qatar World Cup and Dubai Expo 2020 increasing demand for real estate.

see many more in the future, particularly in the Middle East where the lure of brand association can increase sales due to a perceived increase in quality. That being said, such operations face significant legal hurdles, particularly once the Hotel Management Agreement comes to an end as it is unclear how the loss of branding will affect rental values. On this basis, more than ever, and particularly given the length of time these agreements are intended to last, it is important to ensure that the legal matrix between the parties is rigid enough to protect all stakeholders, whilst also being flexible enough to adapt to long-term market conditions.

20

DTCM

Dubai’s room boost The industry shares its thoughts on Dubai’s ambition to boost room stock to 160,000

W

ith an objective of increasing its current hotel room inventory from 80,000 in 2012 to between 140,000 and 160,000 by 2020, a number of measures have been introduced since the Tourism Vision for 2020 was announced in May 2013 in order to enhance and streamline hotel investment and development in the Emirate. These include the announcement of plans to allocate government land for the development of 3 & 4 star hotels; a waiver on the 10% municipality fee which is levied on occupancy per room per night for 3- and 4-star hotels for a period of time after opening; and a reduction of the approval process period for hotel construction to two months. David Thomson, Chief Operating Office, JA Resorts & Hotels His Excellency Helal Almarri has clearly laid out what actions needed to be taken both within Dubai in terms of service delivery, the required additions to the hotel inventory and the infrastructure developments and what markets needed to be developed to bring the targeted number of visitors. The success of Vision 2020 is as much down to the private hospitality sector as it is to the Government. Rob Weeden, Vice President – Sales and Marketing, Shangri-La Hotels and Resorts A focus on increasing visitors during summer is also important and the industry must work together on such aspects to ensure success. Perhaps most encouraging is the thought that has a detailed long-term strategy. Mohammed Awadalla, CEO, Time Hotels While 3- and 4-star hotels will be exempt from municipal fees, encouraging investors to develop hotels in this category, I have recommended to DTCM

David Thomson, Chief Operating Office, JA Resorts & Hotels

that they consider monitoring and regulating prices in hotels – a measure which would have a positive impact in Nicholas Clayton, Chief Operating Officer, Jumeirah Group It is very encouraging for all players in

MARCH 2014

the travel and tourism industry in Dubai to be united by a common vision of future growth, supported by excellent data and insights and spearheaded by such strong leadership. This is a true public/private partnership striving for a common goal and Jumeirah Group is proud to be part of it.

hospitalitybusinessme.com

21

DTCM

From next month, DTCM director of hotels, email AskMajid@mail.com

The Tourism Dirham explained ! " Majid Al Marri explains the Tourism " What is it? The Tourism Dirham is a minimal charge to be applied to guests staying in all types and rating of holiday accommodation including hotels; hotel apartments; guesthouses; and holiday homes. How much will it cost? This minimal charge will vary between AED7-20/room/night, dependant on the hotel category and rating, and will be applicable from March 31st 2014. Why is it being introduced? The introduction will support DCTCM and help to ensure our continued competitiveness on the global stage, two of our economic pillars - trade and tourism. Such fees are charged in several leading destinations around the world.

Rupprecht Queitsch, General Manager, JW Marriott Marquis

R upprecht Queitsch, General Manager, JW Marriott Marquis The breadth of DTCM’s research is extensive, covering regulatory issues, leisure and business topics, and the internal structures of DTCM committed to executing the strategy most effectively. I am particularly interested in the research which showed the rich infrastructure and diversity of Dubai, and the competitive price offering compared to other destinations. We have clearly demonstrated the vital role of hospitality leaders and stakeholders in DTCM’s strategy, working together to raise awareness of Dubai as a destination in an increasingly competitive market.

hospitalitybusinessme.com

The facts

∙ Many of the 20million visitors being targeted will be from the 25-55 year age segment across regional and global source markets

∙ Business travellers account for

∙ 24-48 hour travel time that is usual for business tourists is opportunity to provide a preview to Dubai that will incentivise business tourists to return, for leisure and for longer, with friends and family

MARCH 2014

What is DCTCM? Announced on January 26, the new

and will focus on the international promotion and marketing of Dubai. Areas of responsibility of DTCM include the planning, development, supervision and regulation of the tourism industry. What is the industry’s reaction?

Next month, Hospitality Business editor, Melanie Mingas, will host an exclusive, GM only roundtable discussion on the introduction and impact of the Tourism Dirham. To participate as a Dubai GM or to send your questions for the Emirate’s hospitality managers, email melanie.mingas@ cpimediagroup.com

22

The spa at Fairmont Dubai.

High-end hygiene

The region’s spa managers tell Sophie McCarrick about the importance of maintaining high levels of hygiene within their facilities

K

nown as retreats for relaxation, grooming and cleanliness, spas have high standards to meet when it comes to hygiene. Not only is sterility of a spa important for general hygiene and guest satisfaction, but also from the point of safety and legislation compliance; all in all, optimum hygiene plays a big role in the success of a spa facility. Generally, spas are areas where guests are subject to close contact with therapists and articles of provided clothing; and where they are required to be partially or fully unclothed for a range of treatments. In order for a visitor to feel comfortable and relaxed, it is essential for the environment to be fresh and germ-free. “Hygiene is crucial in ensuring 100% satisfaction and guest retention within the spa, to ensure this we carry out thorough daily cleaning routines and periodic deep cleaning sessions,� explains Claudette Abela, spa and recreation manager at Novotel Dubai Al Barsha. She continues: “Daily our cleaning routine in the spa involves scrubbing of floors and all the spa wet service areas. Sanitising all spa equipment with barbicide and sanitiser for all surfaces, and the polishing of all mirrors and appropriate disposal of garbage. Care is also taken in handling incoming

linen and soiled linen. In order to maintain our standards we have implemented daily vigilance of cleaning tasks, and daily monitoring of timed cleaning checklists.� When hygiene levels are upheld, Neil Hewerdine, vice president of ShuiQi Spa and Fitness Centre addresses that the benefits are not only felt by the guests, but also the facility. “Cleanliness is essentially important within a property, when high standards are maintained it enables us to build up a trust with the guests who witness everything clean, hygienic and spotless, encouraging them to return, it allows us to maintain a 5-star image with guests and it also reflects strongly on the confidence of our staff who are proud to present a quality service,� he said. Upholding these standards is a continuous process and involves a range of methods notes Hewerdine: “We always conduct initial training for new staff and regular refresher courses for existing colleagues, in addition to obtaining updated cleaning methods from other departments such as health and safety, housekeeping and stewarding.� In agreement, many spas concur that the key to keeping standards high is first and foremost through the team of staff working in the spa. Paul Hawco, director of Talise Spa operations, Jumeirah explains that within their facilities they

It is the right of each guest to expect only the highest levels of sanitation and overall cleanliness

MARCH 2014

hospitalitybusinessme.com

have created a set of policies and procedures that “ensure we adhere to required levels of cleanliness and hold our staff accountable to these guidelines. He adds: “Furthermore, we conduct intermittent inspections and consistent walk-throughs with the cleaning team, housekeeping and engineering.� “Hygiene has the highest importance for us. A spa must be kept impeccably clean so that there is no transfer of skin conditions from one client to another. A common concern among spa-goers is the condition and cleanliness of the spa they visit,� he adds. A daily cleaning routine inside the Talise Spas includes thorough cleaning of all materials and surfaces guests come into contract with, so that clients with allergies and sensitivities are protected. Materials such as sheets, robes and linens used on massage tables and other spa areas are changed after every use and washed on a sanitise cycle.

products and equipment such as barbicide, UV cabinets, sanitiser, sterilisation pouches, disposable wears, applicators, spatula cradle covers and more. Supriya Nesaraj, spa manager comments: “A clean and tidy place is essential and all spa colleagues are well trained on the brand’s sanitation standards. They are maintained by conducting internal audits, mystery shoppers, plus spa duty supervisors and senior leaders come for check-ups on a regular basis.â€? Working with brands across the MENA region including Starwood, Accor, Marriott, Ascott, MĂśvenpick, Kempinski, Jumeirah and Rotana, NewGen Laundry operates three commercial laundries in Doha, Dubai and Abu Dhabi, which cater to spa laundry. Steve Connell, business development director of NewGen explains that the laundry uses thermal disinfection as a hygiene benchmark to ensure linens are cleaned to adhere to high IOS9001 standards. “A spa visit is a luxurious treat for any hotel guest, so we like to provide our customers with deep, soft and luxurious towelling to allow them to relax, unwind and enjoy the full pampering experience. Like any of our cleaning processes, our towels and robes need to be thoroughly cleaned, especially if they’ve been in contact with different spa oils and thick beauty products like clay,â€? he comments. A recent development in the market now being introduced in spas is Radio-Frequency Identification Tagging technology (RFID). “RFID is probably the single most significant innovation to affect our laundries in recent decades. It can quickly count the amount of laundry available, it monitors the age of a piece of laundry and identifies which cleaning process it requires,â€? explains Connell. Concluding, Claudette Abela notes that the key to a successful spa is to remember “the overall spa experience is supposed to be accommodating and cocooning, however nobody can feel cocooned in a place that is not clean.â€?

A spa experience is supposed to be accommodating and cocooning, however nobody can feel cocooned in a place that is not clean

Regulations and requirements The subject of hygiene is often overlooked by certain entities as quite a straight forward housekeeping matter, when really there is a lot to consider, especially when the law is involved. Hawco explains: “When considering disinfecting and sterilising products, it is important to understand the requirements set in place by your regulatory board, and use the anti-bacterial products they recommend. Continuous disinfection of your spa and spa equipment is not negotiable. As a spa operator, it is your responsibility to stay on top of laws and regulations pertaining to sanitation and adhere to these regulations. It is the right of each guest to expect only the highest levels of sanitation and overall cleanliness. Hygiene has become such an important expectation that registers on most spa feedback comment cards.� Complying with local standards, the international brand Willow Stream Spa at Fairmont The Palm uses cleaning

From left: Atlantis The Palm, products by New Gen Laundry and guests at Fairmont.

hospitalitybusinessme.com

23

MARCH 2014

24 24

PAGE PA P EVENT AGE GE T TITLE ITL IT ITLE LE E

Housekeeping brings focus to bed protection

The UAE Professional Housekeepers Group discuss mattress hygiene at Fairmont The Palm

S

ponsored by international mattress protection experts, Protect-A-Bed, members of the UAE Professional Housekeepers Group, DTCM and rooms professionals, met last month at Fairmont The Palm to examine the importance of implementing mattress safety in hotels and the benefits it offers when done correctly. During the event, Protect-A-Bed representatives spoke on topics including mattress hygiene; how bed infestations begin and how to deal with them; Protect-A-Bed technology and how their encasements work; allergy protection, saving potentials and more. Those who attended were also given a demonstration on how the brand’s mattress protector prevents any liquids from staining a mattress. Beverages including coffee, red wine and orange juice were poured over the specially protected mattress, which was revealed, stain-free at the end. “Protect-A-Bed mattress covers are used on all of the beds at the Grand Hyatt Dubai, and I can say on behalf of the company that our mattresses remain stain free due to the protector.

MARCH 2014

Tatjana Ahmed, housekeeping manager, Grand Hyatt Dubai and Johan Bosman, director of international sales, Protect-A-Bed.

“I highly recommend them as they not only keep our beds clean and hygienic, but also provide great financial savings value for the hotel,” said Tatjana Ahmed, housekeeping manager, Grand Hyatt Dubai and head of the UAE Professional Housekeepers Group.

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Good Housekeeping = Good Earthkeeping Ahead of a sustainability themed issue of Hospitality Business magazine next month, Tatjana Ahmed

T

here is a lot of attention given to “going green� in hotels with an ever growing commitment to sustainability. The Housekeeping department plays a significant role in identifying areas in which conservation can take place. After all, every department in the hotel is accountable for the sustainability of the environment and should not shy away from the responsibilities to be shared. Commonly, there are well thought-out recycling stations in floor pantries of small and large hotels. The positive result of segregation can be financially rewarding. Hotels might have the policy to segregate and collect used plastic water bottles from guest rooms. But what happens with the left-over water which is still in the bottle and not consumed? A 500 room hotel can easily collect 100 Liters of nonconsumed drinking water from discarded plastic water bottles and put it to use for irrigation in their landscaped areas. The math’s are simple, to calculate the water collection throughout one year. Water consumption for cleaning purpose can be saved in many ways. Mop buckets are filled with water to almost the brim and contaminated with the first squeeze of the mop, therefore not serving the purpose of cleaning and sanitising. Small scrubber/dryers, often not larger than a vacuum cleaner are taking over the scene in cleaning hard floors. Economical and neat, also allowing cleaning personnel to be more efficient. Another Environmental Policy comes into effect when maintaining marble flooring. While the maintenance of marble floors is often not only time consuming but also costly to the environment due to the large amounts of crystallization liquids used, diamond pads will work equally well, but, entirely chemical free. When it comes to guest rooms, hotels should not shy away

MARCH 2014

from implementing a conservation programme and asking their guests to change the linens on bed and bath room every other day. This has been common practice in Europe and the United States for years. Practice has shown, guest do not mind, as the bed is still made daily in the same professional way, as when linen has been changed. Neutral cleaners used together with micro fiber have the same effect as conventional bath room cleaners, but without alkaline. To safeguard the environment in many other aspects, the decision making process in what to offer to our distinguished guest must be sometimes straight and bold. How many landfills can be saved if we install dispensers to substitute for the traditional 50 ml shower gel bottle? Food for thought.

Tatjana Ahmed is the chair and founding member of the UAE Housekeeper Association, housekeeping manager at Grand Hyatt, Dubai, and Hospitality Business editorial board member.

Clean green ∙ Recycling stations ∙ Re-use of discarded drinking water ∙ Reassess cleaning methods and tools

∙ Chemical-free cleaners ∙ Linen changing schedule ∙ Alkaline-free cloths ∙ Dispenser bottles, rather than disposable

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SIMPLY State-of-the-art Software or softer beds? Sophie McCarrick gets to the heart of the debate,

G

iven the explosion of smart-phones and an increasingly accessible Internet over the past couple of years, it doesn’t come as a surprise that the demands of today’s hotel guest are changing. But instead of wanting more, many hoteliers and suppliers in the region admit that they are now experiencing an increased demand for a more simplistic room with a focus on comfort and technology. Whether a guest is travelling on business or leisure, the likelihood of them having a smart-phone, laptop or tablet with them is almost certain. “A growing number of travellers; multigenerational groups, younger business executives and more active seniors are creating new, evolving markets and all using modern gadgets. Free in-room WiFi remains the most wished-for service with 34% of leisure travellers and 56% of business travellers requesting free WiFi,” says Ayman Ashor, general manager, Tilal Liwa Hotel. Ashor adds that: “Things are changing and in-room amenities come and go. Not so long ago cable TV, airconditioning and a hotel swimming pool topped the list for guests. However, travellers and their needs are developing, which is where the hotelier must think about making them as comfortable as possible by providing things such as interactive TV, Wi-Fi, bathrooms with hi-tech features, in-room dining experiences, E-News readers, iPod docking stations and more.” Looking towards the future it is anticipated that the inroom techno-craze will continue to grow. “I believe over the coming year in-room facilities will become more technology driven. For example iPads will be widely used in hotel rooms, allowing guests to have access to all services quickly and at their fingertips. Our guests want to experience luxury at a quick pace; they expect service to be

MARCH 2014

Hassan Al-Hazeem, MD Intercoil.

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SMART and asks: Which in-room facilities are the must haves for today’s time-pressed travellers?

faster than ever, that’s why we see more and more services being driven by technology,� says Pamini Hemaprabha, executive housekeeper, Kempinski Hotel Mall of the Emirates. Following the trend, Vida Downtown Dubai recently installed a new software system, Opera9 Mobile, which enhances overall efficiency within the hotel and provides support to guests via their smart-phones or tablets. “From the moment that our guests make their reservation to the checkout process, we ensure that with enhanced connectivity and state-of-the-art technology, their experience is nothing short of memorable,� said Stefan Viard, general manager, Vida Downtown Dubai. “The implementation of the Opera9 Mobile system underlines our goal to provide visitors with an ‘alive and inspired’ hospitality experience.� Although it’s clear there is a growing demand for tech-savvy rooms, hoteliers also understand that not all generations of travellers are adept to using the gadgets surrounding them. “Even though the idea of multi-media hubs sounds complicated to some, guests who use smart phones are knowledgeable about basic application so it’s really just a matter of plug-and-play. However, to make it easier for all guests we provide in-room instructions on how to use multimedia hubs, to ensure they are useful for younger and older

generations,� said Haitham Khalil, rooms division manager, Radisson Blu Hotel, Abu Dhabi Yas Island and Park Inn by Radisson, Abu Dhabi Yas Island. Despite the fact certain guests do not thoroughly understand today’s gadgets, Hemaprabha believes that “technology is definitely playing a role when it comes to overall guest satisfaction�. She explains: “Guests are very technology conscious which is why multi-media hubs are increasingly popular. However, to ensure everyone benefits from the facilities, at the Kempinski Hotel we inform our guests about our in-room facilities and their usage. Having a technologically advanced hotel definitely helps in guests satisfaction and in staying ahead of the competition.� Higher comfort standards Catering to the needs of both leisure and business travellers, the expectation for in-room facilities varies between guests. Many hotels report that business travellers in particular are more specific about the quality of mattress provided, and how good of a night’s sleep they get. “Over the past few years there has been a shift in focus from in-room entertainment to offering the best quality sleep.

OVER THE COMING YEAR INROOM FACILITIES WILL BECOME MORE TECHNOLOGY DRIVEN hospitalitybusinessme.com

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TOP FIVE TRENDS FOR 2014 - IN-ROOM INTERACTIVE IPADS - E-NEWS READERS - CLIMATE CONTROLLED BEDS - MEDIA DOCKING STATIONS - INTERACTIVE TELEVISIONS

Pamini Hemaprabha, Kempinski.

Hotels have realised that a good night’s sleep is perhaps the most essential of all the amenities they could offer. When guests have a good night’s sleep in a hotel, they are more likely to come back and recommend the hotel to family and friends,” comments Hassan Al-Hazeem, managing director of Intercoil International. “I believe the hospitality industry is being driven by a return to basics, with comfort at the centre of it. This has also

led to an increase in demand for luxury bedding featuring innovative technology, such as the climate controlled bed that we offer. Industry surveys found that more than 90% of respondents rated cleanliness and mattress comfort as two of the most important factors in selecting a hotel,” he added. According to Hemaprabha, most business guests are not able to fully enjoy all hotel facilities available due to the limited time they spend in-house throughout their stay. Catering to their planned schedule she believes it is crucial that they are provided with a comfortable working space. “Leisure guests on the other hand tend to spend more time in their room, hence they are more demanding when it comes to in-room facilities,” she said. “In 2014 guests can look forward to much more comfortable mattresses which will feature stretch fabric quilted with a tack and jump pattern to provide maximum softness on the surface while allowing the inner padding layers to respond to the body contours,” adds Pamini. For business travellers specifically, Yas Island’s Radisson Blu and Park Inn by Radisson hotels both provide high-speed WiFi coverage, docking stations, express laundry service as well as Nespresso coffee machines, “making working away from the office convenient and stress-free” adds Khalil. Lars Narfeldt, founder of Design Tales, hospitality interior designers, notes that he has seen an increased awareness and demand for quality beds in the Middle East as “guests are gradually asking for better sleep rather than a room with a view. At the end of the day, although the needs vary for each

HOTELS HAVE REALISED THAT A GOOD NIGHTS SLEEP IS PERHAPS THE MOST ESSENTIAL OF ALL THE AMENITIES THEY COULD OFFER MARCH 2014

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type of guest, what everyone values is sleep, and this is what hotels should focus on selling.� Following a global trend, Lars reveals that ambient and mood lighting is also becoming very popular in the region. “Lighting is being introduced within rooms to create a more private and exclusive atmosphere. Some hotels are even going as far as

coloured lighting on furniture.� Vinayak Mahtani, CEO at Unique Precise International, hospitality suppliers, raises the point that although guests have price conscious and therefore unable to supply on demand. He explains: “Now, as we see hotel occupancy rates moving upwards in the region, hoteliers are starting to see past the price factor and are looking at three main factors for in-room cheap bathroom amenities in their rooms. We are finding that they are looking for something different and new, something they can take home with them. Being different is in demand in hotels, they want to offer bespoke, unique collections in their rooms and bathrooms.�

So last season? As technology takes precedent, hotels are witnessing certain in-room trends being pushed out of the door, including the mini-bar and bathtub. “If the bathtub was perhaps replaced by the jacuzzi, then maybe we would see guests using it more frequently,� comments Hemaprabha. Adds Khalil: “With the minibar, it is not a question of having it in the room or not, it is now more about providing customised content which suit the preferences of different individuals, this is what makes a difference. I believe hotels should be looking into multifunctioning equipment within their rooms. For example large desks are also now out of fashion and that is why multifunctioning furniture can really help to optimise the space and create a flawless feeling throughout.�

!

technology is playing a major, influencing role. It seems guests no longer want to find out-dated amenities or bulky folders filled with incomprehensible information on how to order a wake-up call, however are looking for simplicity at its best; enabling them to enjoy their stay with ease.

Design Tales founder Lars Narfeldt.

Ayman Ashor, GM, Tilal Liwa Hotel.

NOT SO LONG AGO CABLE TV AIR-CONDITIONING AND A HOTEL SWIMMING POOL TOPPED THE LIST FOR GUESTS MARCH 2014

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34

SUPPLIES & SERVICES

SUPPLIES & SERVICES The world’s most useful and innovative new designs, delivered to you every month

Spring tableware trends

New outdoor collections

Spring is upon us and for those who enjoy the feeling it brings, Villeroy & Boch’s creative director of tableware, looks for inside a property. Bringing nature indoors, ‘modern country casual’ is popular this season and attained by selecting kitchen items with accents of subtle greens. To create a calm, crisp environment, with pink and light blue. Pure white porcelain tableware is also a favourite.

Inspired by the new season, furniture designer Fiore Rosso have revealed two new collections of outdoor furniture, Lavanda by Domus Ventures and Fiore Rosso by Skyline Design. Fiore Rosso by Skyline Design is a contemporary line using materials such as PE rattan wicker and waterproof fabrics, and the Lavanda by Domus Ventures collection is a product range born from Fiore Rosso’s collaboration with Domus Ventures, using outdoor leather for furniture. The outdoor furniture sets range from $2586 to $102,000.

New hotel management system launched Business application software providers Infor, recently launched a new generation of hotel management and business social collaboration software, Infor Hotel Management System (HMS) 3.6. The system focuses on guest service functions, rate and reservation management, group convention handling and resort fee and package management. “Monitoring hospitality industry trends is a vital strategy for Infor and we continue to align our business applications with innovative functions that keep pace with an ever-changing industry,� said Stewart Applbaum, senior vice president and general manager, hospitality, Infor. Infor HMS 3.6 is available in English, Chinese, French, German and Spanish.

MARCH 2014

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SUPPLIES & SERVICES

35

Replacing chlorine in swimming pools

Dinner for two

pool, a new product on the market called BioShield by Belhasa BioTek Solutions, is a high-level disinfectant formulated for disinfecting water in an harmless way. BioShield is manufactured using a stabilised hydrogen peroxide, which consequently decomposes into water and oxygen leaving no harmful by-products. The product is non-toxic and ecologically friendly, as well as being smell, taste and colour free, posing no health risks to swimmers.

Inspired by romance, outdoor furniture suppliers Fiore Rosso have created a new collection called ‘Fiore Rosso

mind. For outdoor intimate dining at home, in hotels or a restaurant, one set within the collection features a table and two chairs (pictured) and costs $1633.

A new era of digital signage !

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MARCH 2014

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EVENT / GULFOOD

W

ith an eye on healthy food as well as healthy revenues, this years’ Gulfood saw 4,500 exhibitors descend on Dubai World Trade Centre for the five day trade event and awards. Inaugurated by by H.H Sheikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance and Industry, in the presence of H.E Helal AlMarri, CEO, Dubai World Trade Centre (DWTC) and Director General, Department of Tourism & Commerce Marketing (DTCM), on February 23, the show featured a record 113,398m² exhibition space and saw hundreds of new product launches with both innovation and health at the forefront of business. Sophie MCCarrick reports on the highlights from the show floor.

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Amira Group launches new organic range Providers of packaged Indian speciality rice, Amira Group are to enter the organic food market with several ranges of organic ready-to-eat meals and snacks, launching in the UAE this year. Speaking at the launch, Karan Chanana, Amira Group’s Chairman and CEO, outlined the goal to expand into the Middle Eastern organic market and increase focus on gaining a larger market share across the EMEA region. “The Middle Eastern market is one of the fastest growing markets in the world for natural and organic products because

of increased awareness of the health benefits of going organic. “Our range of organic products are all about quality and trust. We ensure quality from the time the seeds are planted to the time the product is on the shelves,” Chanana said. Consuming organic products provides a person with a good source of fibre, protein, iron, antioxidants, vitamin B, omega-3 fatty acids and more. Organic products are also known to reduce weight and help reduce blood cholesterol.

MARCH 2014

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EVENT / GULFOOD

GULFOOD AWARDS 2014 Held at the Conrad Dubai after the opening day of Gulfood 2014, the awards were judged by an international panel of independent industry experts and attracted more than 250 entries from 19 countries The winners were:

∙ Best Trade Stand up to 40m²: Al Rifai

∙ Best Trade Stand over 100m²: Agthia Group

∙ Best New Functional Food or Drink: Genius Foods – for Genius White Sandwich Loaf ∙ Best New Health Food or Beverage: IFFCO – for Al Baker Multigrain Atta ∙ Best Sustainable Catering Equipment Innovation: IMC – for WasteStation ∙ Best new Halal food: Al Watania Poultry – for Skin Packs ∙ Best New Health and Wellbeing initiative: Unilever – UFS Food Safety ∙ Best environmentally sustainable initiative: Lupin Foods Australia ∙ Best consumer marketing campaign: IFFCO – Noor “I want the Best”…Big Idea

Driving Singapore’s external economy Singapore’s national pavilion returned to Gulfood this year with a focus on highquality and healthy products to meet rising demand in the GCC region. Audrey Tan, food division director of International Enterprise Singapore (IE) explained that Singapore has recognised the growth potential for convenient, nutritious and Halal-certified foods in the Middle East, attracting a record 48 Singaporean companies to this year’s show, with more than half launching new products specifically catering to the ‘convenient yet healthy’ sector. “The increasing popularity of Asian cuisine among consumers in the GCC is a development set to boost Singapore’s F&B industry in this region.

With processed foods accounting for more than 50% of the GCC’s local food industry, Singapore companies are wellplaced to cater to increasing regional demand in this segment. Coupled with industry standards, Singaporean companies have been able to develop food products that are more innovative, healthier and that meet Halal standards,” said Lester Le, regional director in Dubai for IE. New products from Singapore targeting the Middle East’s timepressed, health-conscious consumers include Prima Taste’s chilli-crab gourmet noodles, Thong Siek Food Industry’s ‘Fischeon’ fish meat loaf, and Foodedge Gourmet’s calzones and wraps.

Red Meat Innovation Hub launched With a remit to better understand the needs and demands of consumers throughout the supply chain, Meat and Livestock Australia (MLA) has launched the Red Meat Innovation Hub. Officially debuted at Gulfood ahead of a March 2014 roll out, the ‘hub’ will initially focus on R&D and marketing, while within MLA the initiative will see collaboration between technical and marketing teams to understand consumer habits and use market insights to educate. Part of a full Middle East market immersion, representative Michael Lee

MARCH 2014

explained that the initiative will enhance the export support MLA currently offers. “The first thing we have been doing this week is understanding the hotel and food service sector a little better. The HORECA, institutional side, getting a better feel of their needs, and so on. The main concerns here are price related and concerning menu design so in Australia we have to position ourselves accordingly. “It’s about understanding the customer’s customer and all the way along the value chain the role that Australia can play.”

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EVENT / GULFOOD

Out with plastic, in with paper Established food packaging and hygiene company, Fourway Trading revealed at Gulfood that a major emerging trend in the regional market is a growing demand for paper products. In their debut at Gulfood, Fourway Trading launched several new products including a new vacuum bag, aluminium foil with increased thickness and a

noodle box, which was developed to cater to the region’s growing Asian cuisine market. Ibrahim Jisry, commercial director of Fourway Trading said: “Demand for paper and rigid cups is increasing and people no longer want plastic cups. This year I really hope to further target hotels, airlines and catering companies.”

Gulfood maximises $1tr global Halal market More than 450 of the world’s leading Halal manufacturers and suppliers exhibited at the 19th edition of Gulfood, positioning the event at the biggest annual Halal food sourcing event, according to the organisers. A Thompson Reuters report commissioned by the Dubai Government in November 2013, found the global Halal food market has an estimated annual value of $1tr – which equates to approximately 20% of a global food market predicted to reach $5.3tr by the end of 2014. With GCC Halal food imports set to jump from $25.8bn in 2010 to $53.1bn by 2020, the UAE’s annual Halal food imports will reach $8.4 billion by the end of the decade.

Water from the Swiss mountains Swiss producer Premium Agua, introduced its luxury mineral water at Gulfood for the first time to generate exposure for the product. Targeting the luxury hotelier market, the team at Premium views the Middle East, and Dubai in particular as the “perfect” target market for their product. Company CEO, Martin Sullivan said: “Our water is designed for the premium market. The artisan water has an exceptional balance of minerals and trace elements, presented in a designer glass bottle.”

STATS

100%

Increase in Japanese restaurants in the Middle East since 2010

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48

Singaporean companies exhibited at country pavilion in 2014

100%

Growth since 2010 for Futurelife Foods, South Africa

250

Entries at the Gulfood Awards

MARCH 2014

$1tr

Annual value of global Halal food market

40

EVENT / GULFOOD

Sharing a Portuguese tradition Producers of Portugal’s traditional custard tart, Nattas showcased at Gulfood for this first time this year promoting their product, the ‘pastel da nata’ and revealing plans of a retail store opening in Dubai later on this year. Company CEO, Pedro Franco said: “We have received fantastic response from the show, everyone who has sampled our Halal-certified product has loved it. We have big plans for expansion in this region; Dubai and Abu Dhabi

in particular can expect to see a lot from us over the next year as Nattas coffee shops are due to open in both locations.” Franco explains that moving the Nattas product to the Middle East has not been a quick process and in order to revolutionise the production of Nattas the company has carried out studies over two years enabling them to produce, store and freeze the product which can only be made in Portugal due to the local water quality.

Pie manufacturer eyes export opportunities

MBG invests $3.3m

Garlo’s Pies is looking to replicate its success in the Australian market via a distribution network in the GCC for foodservice and retail. With a target to generate 30% of revenue through export, managing director and cofounder of the family-run manufacturing business, Sean Garlick, added that a 50/50 share would be targeted between retail and foodservice in the GCC.

The German beverage group, MBG International Premium Brands has invested $3m into its Middle Eastern subsidiary following the announcement of Dubai as Expo 2020 host. The capital will be used to implement extensive marketing support to the company’s three regional brand launches, as well as to strengthen local operations. “Dubai’s Expo win is a huge opportunity for our regional team. Very recently we introduced Goldberg bitter sodas, Feelgood Juices and Acqua Morelli Water. Dubai is a trendsetting city influencing not just the MENA region, but the whole world,” said Andreas Herb, MBG Group’s CEO. “A strong presence here in Dubai is a multiplier for any kind of business and right now it is key for us to strengthen our team and infrastructure here, in order for us to keep up with our growth,” he concluded.

STATS

$1.25bn

Produce exported from Victoria, Australia to Middle East 2012-13

The company, founded in Sydney in 2001, moved into a new 2000sqm factory in May 2013, which is currently running at 15% capacity in anticipation of export demand. Garlick said: “We’re encouraged by the fact that there aren’t many pie makers with export accreditation in Australia and we’re fully certified for hygiene and Halal, so we want to get the head start while we can.”

90%

Of the food consumed in the GCC is imported

MARCH 2014

$106bn

The value to which food spending will increase within the next decade

300%

Growth in expert of Peruvian goods to the GCC

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Putting Millennium on the map

MEA vice president of operations for Millennium Hotels, Thomas Tapken

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MARCH 2014

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VP SPOTLIGHT

F

or somebody who at the time of interview was only 22 days into the biggest role of their career to date; who had himself interviewed 37 potential GMs and hotel managers over the previous week; and who is in the middle of establishing no fewer than 11 key policies, practices and announcements, Thomas Tapken is a remarkably calm man. As the ‘to do’ list suggests, there are big announcements on the horizon for Millennium and Copthorne Hotels in the Middle East, Africa and India. An operator today of 16 properties, a further eight will open in 2014 and the entire portfolio will double within two years, should Tapken’s frameworks roll out as planned. Perhaps the most exciting of these will be the announcement last month that Millennium is to bring its M brand to the Middle East, with a debut of the mid-market name on Dubai’s arterial Sheikh Zayed Road – no less on the last available plot – should opening schedules progress without hiccup. The property will be the group’s second on the major highway, which is also home to the world’s tallest hotel, DIFC, Burj Khalifa and the Armani, Dubai

World Trade Centre and no fewer than seven malls. A signing that was confirmed with more speed than Tapken expected, he reports the 300 room property will run at “no less than 90% occupancy�. Despite forming a central element of Millennium’s bid to diversify away from traditional corporate business, the growth of M in the Middle East will still largely depend upon owner demand. Rotana’s Centro – despite its concept appointment – he comments: “It’s very exciting because everybody was after this building and we have it. It will be a new brand for Millennium in the Middle East – a brand we have used in Singapore – which will only go with this building,� he says, his own disbelief at the pace of the deal’s conclusion evident. The ink was barely dry on the paper when Tapken hinted at the scope of developments the new signing indicates: New brand, new management, and new era for the 25 year old chain in this region. “To invest in the cost conscious hotel today, compared with any other, makes the most sense. If you look at Dubai now

Copthorne Sharjah.

Grand Millennium Dubai.

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Millennium Amman - Jordan.

MARCH 2014

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The new initiatives ∙ Clustering of management and sales activities ∙ New group HR director ∙ Increase communication - First GM meeting called Feb 15, quarterly newsletter for owners and internal management ∙ Company mission statement ∙ Aiming to be the employer of choice ∙ KPOs/ SOPs ∙ New openings ∙ Establishment of a new, leisure focused, drive ∙ Introduction of new brand ∙ Approximately 10 new F&B concepts ∙ Introduction of new IT systems for

there is a lot of assistance for the sector. Because of the negotiations and chain of development, over the next five years or so we could be looking at around five or six being rolled out. But it depends on the owners,â€? he continues. Hit the ground running While the new signing and scheduled openings could easily be seen as the far from the only thing on the cards for 2014. Having critically analysed every element of current working practices, Tapken is far from cagey when discussing the areas that need development, and few rocks remain unturned. Instilling a management style honed at Rotana, MĂśvenpick and City Seasons, among others, Tapken’s first move will focus on cultivating an ‘employer of choice’ ethos across the group, supported by a new HR director, and enhanced communication channels, covering everything from the first GM meeting and self-assessments, to quarterly internal news bulletins for owners and senior management. The next job will be the clustering of certain management activities, an initiative to be road tested in Oman when three properties open under the same owner – an unheard for Millennium to date. Management, purchasing, sales and marketing will too be clustered as

44

VP SPOTLIGHT

Millennium Resort Mussanah Oman.

Grand Millennium Al Wahda Abu Dhabi.

Millennium Kurdistan - Iraq.

ownerships concentrate from the current 15 across 16 properties. It’s a move that stalwarts such as Hilton and Sheraton have tried and failed, which would be enough to deter anybody, however – and taking no more than partial credit for the move – Tapken comments: “As long as you work with one owner it works. You have the financial model, the operational model, the GMs need to be part of it, and central sales must be part of weekly meetings.� On the guest-facing side of things, developments will see the conceptualisation and introduction of 10 new F&B concepts (“fine dining out, fusion in,� as Tapken states); new IT developments – including an app, of which the details remain undisclosed; and a drive to increasingly attract leisure business, with an additional focus on the development of spa and extended stay, maintaining a 50/50 revenue split between rooms and other services. Once management is unified and guest developments are fully up to date, the next thing big task will focus on the intangible: A homogenisation of the brand across its various properties, bringing together all the other achievements to align service standards,

SOPs and guest expectations. “Yes we have different properties, with different looks, different feels and different owners, but we need to give to the guest a feel of brand identity and we are not there at this present stage.� Balancing the act While Rotana has the market presence one seeks in an employer locally, Tapken’s need to return to an international operator is what he credits as being the driving factor behind this latest move. And it doesn’t get more international than this. In his biggest role to date, the management machine he is part way through implementing will drive Millennium and Copthorne into new GCC territories, Africa and India – a huge commitment to growth. While he admits that, “We’re in an interesting position at the moment�, he does reiterate that he is “in a people business� and continues: “It’s the most difficult thing to get the right people on board.� His management model is also about empowerment of existing department heads and their promotion to group positions, and will cover everything from

MARCH 2014 2014

the day to day demands of guests, to the actions of the porter. Balancing the act to bring the whole thing full circle, this is “The trust of the owner is the biggest challenge we are facing today the world over. An owner gives us up to $450m that is a lot of money to put in the hands of an operator to trust and let them work. If an owner comes in and sees we are taking care of their investment and fulfilling the expectations of their investment we are up and flying.� When it comes to regional expansions Tapken refuses to put a number on exactly how many new hotels will open, or indeed where they will be, insisting such a move should come without such limits. Calling his first month “amazing�, he says of the rest of the task at hand: “[The move was] a big leap. How will I handle it? You grow into positions. Today Millennium isn’t at the same point as Rotana, but hopefully I will be the one oiling the machine that changes that. And it’s a challenge.� He concludes: “The day to day job is not in my nature. I need the challenge of strategic thinking and the team visual so we can work in the same direction and bring all the loose ends together.�

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46

COVER STORY

F

CHOICE, CONTROL, CONVENIENCE

Hilton Worldwide’s global head of luxury and lifestyle brands, John Vanderslice, and VP of brand marketing, Stuart Foster, explain the three Cs debut and expansion of Conrad and Waldorf Astoria in the UAE

MARCH 2014

rom the traditional luxury model employed at The Ritz London, to the Gen Y chic now sweeping through Starwood’s global properties.... in the world of hospitality luxury is not what it once was. Ostentatious and designer-labelled wearable goods are out and spending on luxury’s intangible service industries is rising, as is spending on the experiential. Add to this the fact there are more millionaires than ever before and that the average millionaire in the world’s dominating economic powerhouse, China, is 15 years younger, and the effects on the philosophy of hospitality are becoming irrefutable. In re-shaping their commercial domains and brand USPs, the industry’s biggest chains are ploughing millions of dollars traditional concepts of hospitality. And While all agree that WiFi is now as important as air and water, there is still a clear lack of distinction as to where the line falls when personalising services, upselling experiences and subsequently the role technology should play. But what Hilton Worldwide is implementing between two very distinct luxury brands takes a different track – declining to embrace only one luxury model, the all American operator is implementing two very different strategies for its respective luxury brands, Waldorf Astoria and Conrad. The operator, whose global head of luxury and lifestyle brands John Vanderslice – author of its ‘Luxury Manifesto’ following research meetings and face-to-face interviews with luxury leaders from Tommy Hilfiger and Ferragamo to Danny Meyer – believes it to be the answer. “The rise of the new luxury customer is unbelievable – they are younger, they are from the Middle East and BRIC countries, they’re more casual in attitude and demeanour but more demanding in the services they expect,� Vanderslice says. “The tangible luxury sector is growing by 8% a year, but the intangible and experiential are growing by much more, and that’s wine, travel, restaurants, hotels. Tourism experiences in particular

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47

COVER STORY

are the largest within that, so we see a continuing trend,� he continues. The conclusion Vanderslice and his for these two opposing, but not mutually exclusive, markets. Although rooted in the same ‘at your service’ ethos – the primary approach for Conrad and Waldorf Astoria – the crux is the concierge; virtual vs tangible. Despite changing attitudes among luxury clientele, the group is not yet ready to shed the traditional luxury imbued at Waldorf Astoria, one of the world. But on the other hand it recognises and embraces the demands of the Conrad luxury guest. This “cultural foundation� as

‘luxury of being yourself’ with Waldorf’s ‘true Waldorf service’.

Technology vs Touch industry’s ongoing quandary over the evolution of luxury: Does the guest want more contact or more control? “It’s choice, control and convenience,� VP of brand marketing Stuart Foster begins. “The three Cs are what luxury customers are looking for and we laid down a gauntlet intersection between technology and service will win the market.� The experiment is ongoing as Hilton Worldwide runs two opposing ideas of luxury in tandem, fully aware that the market itself is yet to decide where the boundaries lie. But as Foster and Vanderslice tell Hospitality Business, the luxury discussion of today is still about the empowerment of guests to personalise

their own trips, it’s just that a growing number of guests prefer to do that without verbal communication as they’re also listening to music and enjoying a massage at the same time. In addition, Foster add: “People like the fact that they don’t talk to people on some of these requests! Some people feel too high maintenance if they call down to ask for a softer pillow, so we take that away and now you can order a new pillow at the touch of a button,� " " # “You can research travel on your tablet and on the internet, but previously all those electronic enabling services stopped at the door of the hotel and it became a manual process all the way to your room where there is this landline phone with nine buttons on it, which 20

A 5-star first - The world’s first 5-star hotel At the time, it cost $12.5 million to construct. When the hotel opened, a room at the Plaza Hotel was only $2.50

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per night (equivalent of $63 today). Today, the same room costs from $695 upwards. The hotel, which even features

as a setting in F Scott Fitzgerald’s The Great Gatsby and episodes of US sitcoms Friends and Family Guy.

MARCH 2014

48

COVER STORY

years ago was innovative,� he continues, questioning: “But who uses a landline anymore?� Over at Waldorf Astoria the equivalent is a personal concierge assigned to guests for the pre-arrival, stay and poststay periods of a reservation. On the one hand, it matches the ‘choice’ element of the three Cs, while also proving the illusive intersection between technology and service has yet to be discovered. A move that Vanderslice initially told the media was part of the choice element of the three C’s, it is also today part of the group’s remit to be the “most innovative� luxury hotel brand in the world. “I actually tell my entire team that if we master our remit to be most innovative, Innovation is a platform.�

says the approach was tailored to a model of “rapid growth in the right

the luxury research exercise. “The fact that Conrad is open here today is remarkable because the opening of Conrad Dubai, Waldorf Ras Al Khaimah and Waldorf Astoria The Palm, three hotels here in the UAE, means an area of experiences and luxury goods growing globally, that’s why you’re seeing this rapid expansion,� he explains. Conrad, a 54-storey “urban oasis� on Dubai’s Sheikh Zayed Road, boasts 555 rooms and suites, split over 364 deluxe rooms, 123 executive rooms, 44 double deluxe suites, 120 executive suites two Conrad suites and two Royal suites. The rooms are supported by six F&B outlets (comprising Izel, Cave, Ballaro, Marco Pierre White Grill and Puro Beach Urban Oasis and capturing the ‘luxury experience’ concept); one of the largest meeting spaces in Dubai, a 5,500sqm outdoor pool and 2,000sqm spa. “Conrad Dubai has been a labour of love and so far we’re really happy with the experiences that we have been able to provide guests,� Vanderslice comments. Waldorf Astoria The Palm, which opened last month – within six months of the brand’s debut in Ras Al Khaimah, itself featuring an 18-hole championship golf course, a 350-metre private beach

and two temperature controlled outdoor pools – boasts 319 rooms, Club Lounge and palatial suites. Adding the je ne sais quoi such a brand requires will be little Italy dining venue, La Pergolina, delivered by the same chef behind Rome’s only three Michellin Star restaurant, La Pergola. “We think it’s going to be another great Waldorf story. Conrad is the smart luxury as we call it but Waldorf is unforgettable and we believe this property will be just that,� Vanderslice adds. The now relatively established Waldorf Astoria Ras Al Khaimah was designed around the principle of getaway MICE business, leisure tourism and weekend escapes and while individual occupancies are closely guarded in the wake of the Hilton IPO, it can be disclosed that the current stock of 25 Waldorf hotels and 23 Conrads, will grow to 37 and 36 respectively, with properties signed in Mecca (Waldorf) and Doha (Conrad). It’s a small drop on Hilton’s 1000 hotel in brand prominence, particularly in the local region. As Vanderslice concludes: “This moment is very important for us. The bigger picture is that we have been on this quest for four years and the aim is to be the fastest growing, most innovative luxury hotel brand in the world.�

Conrad Dubai ! " # $

Waldorf Astoria The Palm.

Waldorf Astoria Ras Al Khaimah.

Waldorf Astoria Ras Al Khaimah ∙ 350m private beach ∙ 18 hole golf course ∙ % ∙ Conference and events facilities ∙ Spa ∙ Fitness facilities ∙ 3 Michelin starred restaurants

Purobeach, Conrad, Dubai.

Waldorf Astoria The Palm ∙ 319 rooms ∙ Club Lounge and Palatial Suites available ∙ 2 swimming pools ∙ Tennis court ∙ On site watersports ∙ Fitness centre ∙ Spa

New boundaries Part of that innovation is in the introduction of luxury brands to new locations. The research wasn’t just about identifying new trends in the global luxury market, but new destinations for these brands, particularly those in the traditional luxury hospitality segment. While some may hold reservations at the quick succession of openings to date – three luxury hotels within three years, a matter of kilometres apart – Vanderslice

At a glance

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10/3/13 2:12 P

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2

013 marked a turning point for Abu Dhabi’s flagship destination, Yas Island. Home to the first Ferrari branded theme park, an award winning water park and the UAE’s F1 race track, it has successfully emerged from its developer’s crash-triggered financial controversy to become a premiere destination for entertainment, relaxation and events. Following this year’s opening of Yas Waterworld, the addition of a golf course and beach, and the announcement of

INDUSTRY ANALYSIS

concerts such as The Rolling Stones, the island is living up to its ‘world class leisure destination’ status. “The government decided the development of Yas Island had to be a priority in positioning Abu Dhabi as a leisure hub,” says VP of destination management at the government entity, Miral Asset Management, Karim El Guanaini. With a remit to manage existing attractions and liaise with the Yas stakeholders in order to invent others, he summarises the development as

MARCH 2014

a place to “live, work, meet, play”. The island’s stakeholders range from entertainment management companies to Abu Dhabi Tourism and Cultural Authority (TCA) and, of course, its hotel operators, who have been instrumental in their marketing and distribution to the year-round commercial viability of the island. The days when Yas was home to a half-finished theme park, an Ikea, and a whole lot of sand, are a distant memory; securing the envisioned reputation of an everyday resort with the special occasion draw to boot.

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INDUSTRY ANALYSIS

51

! "# $ % & VP of destination management for Yas Island, Karim El Guanaini

The leisure strategy The positioning of Yas within the leisure market is somewhat unique. Not quite a Disney World, but more centralised than an area like Singapore’s Sentosa Island, it is simply referred to as ‘a destination’. “Accordingly, there was a lot of focus on making Yas Island the destination. Coming back from a lot of challenging situations to now, the focus is on making Yas a place that will complement the UAE-wide vision,� Guanaini adds. Yas Island first entered the public conscious with the opening of Ferrari

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World in October 2010 and quickly became a business hotel destination with draw for both the international traveller and local resident. In its transition to a business/leisure destination, it was the introduction of events at Yas Arena and Yas Forum, not to mention Formula 1, which really put Yas in the driving seat. The focus now is on “an entirely different level all together� says Guanaini. “We have rearranged the dynamics of how we are going to function because we have focused our efforts on how we

MARCH 2014

The Yas story Yas Island is a 25sqkm island in the Emirate of Abu Dhabi, currently in the midst of a $37bn development project. When construction began in 2007 it was estimated to take seven years to complete, but with the plan ever evolving there is still more to be done and the latest estimated completion date is set to be Q4 2018. The highly anticipated Yas Island Mall, slated to be one of the largest in the region, opened in H1 2014 and a further 13 hotels are planned to be added to the current stock of seven; despite these only just seeing demand match supply.

52

are going to become equally a leisure and business destination,” Guanaini says drawing particular refernce to the role of the island’s hotels, which previously housed the consultants, engineers and developers executing the island’s construction. While he isn’t so keen to quantify the achievements with investment figures, or even visitor numbers – difficult to count due to day visits and multiple access routes – the popularity can be felt, and Yas Waterworld alone is reportedly receiving more visitors than Burj Khalifa. It has also been named the second best water park in the world, behind Typhoon Lagoon, Florida, by the LA Times. Success story Supporting the attractions are seven hotels between 3 and 5-stars, operated by Viceroy, Rotana, Radisson and IHG; a newly opened beach set to be updated annually; and from H1 2014, a 500-store mall. Even the driving routes were planned to become an activity in themselves. “The leisure business hotels were gaining was based on major events such as the Flash concerts, F1, and all other events at Du Arena but today we are focussing on an entirely different approach all together,” Guanaini says. According to Miral, the design of the

INDUSTRY ANALYSIS

island in this approach was critical. Everything from knowing what and how to promote, down to the creation of policies under which to execute the marketing strategies, was an exercise to promote the wider destination, using packages, cross selling and inclusive offers to not only draw the day visitor, but overnight guests also. Under the current plan, the finished island – construction is estimated to be completed Q4 2018 – will feature 20 hotels, a 1400 berth marina and even more housing. No doubt there will also be a few more attractions added, for both the tourist and local resident. Learning from the stalled projects in remote locations elsewhere, Yas has leveraged its proximity to two major population hubs, with natural attributes and the space to create a thrill seeker’s paradise; achieving something that other projects have at times made to look like rocket science. “Today, the leisure segment is increasingly growing. The attraction assets are becoming more and more commercialised. The way we are functioning as a commercial entity is that we are reaching out to the people who are staying on Yas Island on an end user basis, and those across Abu Dhabi or in Dubai as well. So it’s a complementary offer into what people want to do,” El Guanaini concludes.

Completing the city: The Dubai projects While the entertainment and business infrastructure exists, Dubai is acutely aware that its leisure tourists needs more than malls and meals to keep them occupied. The Municipality’s projects focus on heritage, parks and Dubai’s custom brand of record-breaking glitz Dubai Creek heritage restoration Hatta Heritage Souk and Motel Al Fahaidi Market Traditional Market Dubai Safari and Zoo Dubai Crocodile Park

Quran Park Palm Park Miniature Park* Flowers Park*

Dubai Frame Mohammed Bin Rasheed Library Boat and Fishing Tools Market ART Centre Dubai Wetland Centre *world record breaking project An aerial view of the iconic Ferrari World.

MARCH 2014

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Chef Competition United Arab Emirates, 2014 Do you have a desire to push culinary boundaries? Are you open to experimenting with new ingredients? Would you like to win an all-expenses paid business and leisure trip to New Zealand to experience the country’s food, lifestyle and culture?

Here is your chance New Zealand Trade and Enterprise invites all UAE-based chefs to enter the 2014 Taste New Zealand Chef Competition. For more information about the competition, including how to enter, visit www.nzte.govt.nz/TasteNZ The Taste New Zealand Chef Competition is open to all senior chefs over 21 years of age, based in the UAE.

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INDUSTRY ANALYSIS

LEISURE SPENDING DRIVES REGION’S GROWING TOURISM RECEIPTS Regional leisure spend higher than global average

A

strong rise in leisure spending pushed tourism receipts up 12.3% CAGR tourism receipts in 2011. ! " # $ " & '( #

Country

) # *+, # $ " " $ ( # # " # ( ( $ - *+,& $ ( # /+4! 5 during 2002-2011. 7 # + " # *+, $ ( /+4!

Tourism receipts 2011 (USD billion)

Leisure spenidng

Business spending

Tourism receipt CAGR (2002-2011)

UAE

38.3

77.4%

22.6%

13.4%

KSA

20.0

61.4%

38.6%

11.1%

KUWAIT

5.3

60.1

39.9%

12.8%

OMAN

3.1

64.8%

35.2%

8.7%

QATAR

2.9

78.7%

21.3%

15.9%

BAHRAIN

2.4

87.5

12.5%

7.1%

72.1

71.6%

28.4%

12.3%

3,961.8

76.0%

24.1%

7.4%

GCC GLOBAL

# 8 " # 9 $ ( # : & # ; " & $ ( # /+4! < = # > ( # ( $ $ $ # ? & $ ( # " (

Hotel demand segmentation across key GCC markets 100

80

60

40

20

Source: HVS, Alpen Capital

MARCH 2014

Leisure

Kuwait

Manama

Oman

Doha

Sharjah

Dubai

Abu Dhabi

Jeddah

Riyadh

Medina

Mecca

0

Business

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56

ROUNDTABLE

Left to right: Jason John, general manager, Parker Company; Anke Glaesing, GM Movenpick Deira; Sony Peter, Intercoil; Alan Hadad, Kohler; Francois Galloisy, GM, Radisson Blu Media City; Anthony Guss, Casualife; Tedela Negussie, purchasing manager, Mรถvenpick Ibn Battuta; Bhanu Singh, Director or Procurement for Atlantis, The Palm; Minesh Doshi, Digivalet; Wael El Behi, GM, Hawthorne suites by Wyndham.

MARCH 2014

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ROUNDTABLE

W

hile procurement is the purchase of goods from an outside source, the role of the procurement manager is much more. Tasked with understanding the needs of each division in a hotel, understanding the product specifications of individual items while being mindful of cost and quality issues is no mean feat. Add to this the dynamics and demands of corporate standards, localisation and guest demand – not to mention the possibility of ethical procurement or CSR linked buying policies – and the challenges only heighten. Consider then the role of the vendor. Squeezed by the competition, trading at the mercy of import and export tariffs and subject to delays caused by elements far beyond their control. Clients are time pressured and subject to approvals from head offices and owners alike. Further compounding the issues is the lack of professional development for procurement professionals. While the sellers are subject to intensive training in order to meet targets, the people buying the products are not always at the same advantage. The impact is that, without SOPs and pre-qualified vendor lists, how is a buyer supposed to know that the pitch they hear is for the product they need? And what happens to market innovation if the selling of goods is monopolised by long standing corporate relationships? Hospitality Business’s panel of buyers, sellers and agents debate the issues.

Hoteliers, what do you consider to be the primary challenge when sourcing products? Francois Galoisy: We still face challenges with reliability in terms of timely delivery, importing, and direct purchase. I always feel for new hotels facing delays on their deadlines as it’s very frustrating and personally I don’t think this should still be happening. Wael El Behi: The issue is two-fold. The efficiency of purchasing requests and the discrepancy between specified

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MARCH 2014

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and supplied. Sometimes you ask for A and get B. Procurement needs proper communication. Anke Glaesing: Specifying products needs to be airtight, the real challenge is that you get so many suppliers for the same thing because those three companies that existed a few years ago now each have five managers who have established their own companies. Which one do you choose? Also, the process takes much longer. AGuss: You don’t buy by brand? AG: When we’re buying something to add on to an existing item you have to buy based on what matches best, not necessarily brand. Long term you add value to a property and buy brands, but for other purchases it’s how it matches the existing. Jason John: Much of the time, a lot of the property is budget driven and people are taking decisions they shouldn’t be taking based on numbers only and not the quality of the product versus the needs of the operator. It’s a common factor we face. AG: When you have smaller suppliers you need to know if they can give you warranty on the items. You have to make

ROUNDTABLE

BEST PRACTICE TIPS AGuss: deal with the manufacturer not the trader. You will get a better deal and the warranties will hold up. Anybody can buy something from China, but if you’re covered it’s better for you. JJ: Do you understand the product? Are you actually getting true value? NT: The process has to be open to everyone and it has to be transparent. Also, gve feedback to the vendors who don’t get the job.

a decision but then the owner plays a role, too. AGuss: The industry isn’t well equipped to take procurement agents on board and a lot of owners believe they can do the job themselves. But the market really needs education in value judgment rather than price. We struggle when we don’t go through procurement agents. Judgments are based on price, not best value.

MARCH 2014

What are the specific challenges of the procurement manager? Bhanu Singh: Procurement during construction and operation are a completely different ball game. We as procurement managers should be looking firstly at how quickly we can process decisions and how well we can look forward. Processes are often unclearly defined and that also causes hold ups. It’s very important to have clear processes and to assign the people who are going to be responsible for certain elements then empower them to take decisions and do their job. Quality in procurement isn’t just about the products. You also have to pay the right people to specifying the products. AG: That’s an issue with training. AGuss: If you take a risk to save a dollar buy insurance. AG: I often wonder where the career development is for procurement managers. The DoR, F&B manager, housekeepers, are all developed. And how do you know the strength of their negotiation skills unless you ask them to negotiate a purchase in their interview? BS: We started investing in five day in-house training programmes in 2010

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Service within Reach

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ROUNDTABLE

and they cover a wide range of different topics. JM: It’s not only skill, you need to be transparent with the company and at the same time be proactive. It’s a case of better planning. Tedela Negussie: It’s up to the procurement manager to get prequalified vendors. We’re not saying that a new company is a bad company but anybody who isn’t pre-qualified we need to call in for meetings, run background checks, gather references and involve other managers. AG: When you do your procurement plan for the big things, you normally have a plan and if the homework is done by the procurement manager and the owner is signing off anyway because it’s CAPEX, you have to do your planning at the start of the year. Alan Hadad: Which then means bulk buying because from experience you know for example, how many hand showers will need replacing in a year. How are procurement managers specifications for each product? Sony Peter: Customer preferences are making things more complicated, as are the geographic dynamics of purchasing and standardisation. We often have brands testing mattresses for a year and then purchasing for all their hotels, based on the results of that testing phase. JJ: It’s important for the purchaser to know the specifications of each product. To a layman who doesn’t know anything about building a mattress your general purchaser isn’t going to be able to tell the difference. It’s also important that those reviewing the specifications know what to look for. It’s quite diverse in relation to all the commodities you all deal with. AGuss: There are two types of hotels, you’re either in an individual situation or part of a group. If hotels can get

together with suppliers and project what they do and the strategy they work towards, it would help both parties. If the manufacturer knows what you want and when you want it the peaks and troughs of our manufacturing can be levelled out and I can make more money because I don’t have down time. JM: Our international offices are advisors and our regional office may recommend specifications. FG: Our regional procurement position was created two years ago, as we now have five hotels in Dubai and nine in the UAE, and a lot of responsibility has been

Quality in procurement isn’t just about the products. You also have to pay the right people to specify the products

MARCH 2014

taken away from the hotels. Plus we have from the corporate office in Brussels some specifications for coffee machines, etc. It’s online and you don’t even need to ask for second or third quotations. How does the international buying dynamic work for the larger chains? BS: We have hotels here, the Bahamas, Maldives, Monacco, etc. but a product that is available in one place may not be available in another. There is a lot of information sitting in all locations and every business head has to compete in the local market and within the entire group or chain. For example, across our nine hotels we use six coffee suppliers. But the market is changing and we need to change with it. AG: We at MÜvenpick have to import our coffee because we use Fair Trade but we had to find an agent in order to import that product, and that wasn’t easy.

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NT: Purchase approvals need to be online. That really streamlines things. How does the dynamic with regulatory and government bodies and the specification of certain products or suppliers affect your process? JJ: Most of this comes during the design and those decisions are then inherited FG: We set a certain amount in our CAPEX budget because we know regulatory standards will introduce new instance, which must be bought from a vendor approved by Dubai police. AG: There are times now when fire regulations are required for outdoor furniture or structures, or the hotel signage changes and has to be purchased from RTA approved suppliers. JJ: It’s up to the designer to be mindful of that, and other design regulations, in the build-up process. AH: With the star ratings and those specifications in the build-up, we work

ROUNDTABLE

WHAT WILL YOU BUY FOR THE HOTEL ROOM OF THE FUTURE? AH: Manual showers are being replaced with digital systems with thermostatic valves. It’s more accurate and sophisticated. JJ: Lights are very complicated sometimes. Simplicity will become important. FG: TVs are always getting bigger and technology is very important, but the DVD player is out. Technology moves faster than the investment cycles. AG: I’m not even sure if you need to provide iPads now. Just make sure everybody’s own devices are compatible. BS: It’s not just about the products, but the services those products provide. We introduced open WiFi and the feedback is the speed wasn’t fast enough.

MARCH 2014

across the DTCM rules for the bidets, shower and bathtubs. Hotels have to break down the walls sometimes to meet new standards, but every 5-star hotel today must had a bidet and a separate shower and bath, even though we know how few guests use the bath. What are the primary threats to procurement and supply chains regionally? JJ: You have to put checks and measures in along the way. That’s an important part of any process. AG: Suppliers should always be audited, visited, especially for the perishable goods and you have to look all down their supply chains also. JM: We send our hygiene manager to check premises and as a result of that inspection we check references and their paperwork. It’s very simple, but it’s comprehensive. AG: We do not do business with suppliers who are not certified or who

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ROUNDTABLE

do not meet our criteria. Again, we too check ourselves. NT: As a procurement manager you have to send somebody from in-house to inspect and make the decision. If they comply, we do business. For example with our Fair Trade coffee. SP: It makes sense to take steps back down the supply chain and we are open to people visiting our factories to see the compliance standards we work towards. JJ: We will go with designers to inspect prototypes and we inspect a second time before dispatch. AGuss: As with everything else on this topics there are two issues here: Projects and ongoing needs and they are both very important.

We manufacture in China because labour rates are too expensive in Australia, and we get the teak wood from Indonesia. The next issue is the fair trade or environmental issues. Teak wood is a particularly rare species of wood and we have certifications to prove that we only source our teak from renewable sources. Procurement agencies appreciate that, but hotels don’t as they predominantly buy on a price basis. Again, if you are buying something totally on price put money into an insurance contract to cover yourself. It’s certainly possible for a manufacturer to check those issues, or to fly samples out. BS: From the operations perspective,

If hotels can get together with suppliers and project what they do and the strategy they work towards, it would help both parties

MARCH 2014

you have the choice to nominate agents to travel to international factories and check processes and standards. There are companies that can assist on your behalf. Finally, the relationships between companies and suppliers is very important. Whether it’s a customer relationship in the hotel or otherwise, it’s the point of view that you need to have certain criteria and things in mind for how you wish to work. AGuss: There is no official supplier or procurement association in the region and that’s something that is really lacking. NT: As a procurement manager, the value of the relationship is based on certain criteria and it depends on the product.

Hospitality Business Middle East would like to thank Mövenpick Ibn Battuta Gate Hotel for hosting this discussion. Next month’s roundtable will focus on sustainability as a business model in the hospitality industry.

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GM INTERVIEW

W

hile online comparison sites, search engines and user review blogs become increasingly popular amongst the contemporary consumer, a recent survey conducted by Amadeus reveals that travel agents across the MENA region are now having to adapt new, innovative strategies in order to retain customers and keep a steady flow of bookings coming in. Conducting a survey of 649 GCC agents (see chart), the findings defy many conventional myths from the industry. While a growing number of regional and global hotel chain heads cite brand loyalty and brand experience as the influence de jour on a guest’s booking choices, MEA vice president of Amadeus, Antoine Medawar, is unsurprised that this, in actual fact, is not what the surveyed travel agents reported. “When you see that the first choice criteria for bookings is either location or price, it is quite obviously what everyone is looking for and both are equally important for the consumer. For the travel agency however, it’s commission. How much money they receive and which hotel is going to pay them the most money,� he observes. Other areas in the study looked at agent interaction with booking portals, cross selling and user reviews. Online/ offline

bookings are certainly increasing in the region, it exposed that travel agents still tend to opt for traditional methods such as email, telephone and fax. “I found it surprising that agents in this area still make the vast majority, if not half of their bookings, by telephone and are not using the technology services available like we see happening in Europe and the United States,� says Medawar. “The strongest emerging trend that we identified is that travellers are completely connected online these days, and more commonly, will not book through a travel agency before having looked online at the benchmark of what’s happening in the market. They know exactly what they want, they

HAPPY HOLIDAYS

As today’s traveller becomes ever more educated and Antoine Medawar, Amadeus vicepresident, MENA,

Sophie McCarrick reports MARCH 2014

hospitalitybusinessme.com

67

GM INTERVIEW

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know exactly where they want to go and they know exactly what price they want to pay,� he adds, continuing to explain that today’s consumer has all means available to them on channels such as search engines, for finding the information they want to know about a hotel or airline. Despite the Internet’s upper hand over travel agencies, Medawar admits that agents still dominate on value. “Value is added with a travel agency when the agent really knows about the product and what is on offer. This is something online channels cannot offer, a personalised, intimate service. Online portals will never be able to compete with this service.� Interestingly, the survey concluded that while travellers have great accessibility to information online, 52% of travel agencies admitted to having a moderate influence over customers’ final hotel choices, an additional 42% considered that they have a high influence on the final choice. As the customers of Amadeus’ clients become successively more aware and inquisitive, Medawar believes that “now is the time for Amadeus to remain strong and continue to provide the correct, upto-date technologies to travel agencies in order for them to react immediately and sufficiently to the request of the consumer. “We must provide search engines that enable agents to reach out to a diverse range of channels and expose a vast variety of locations, pricing, and content, based on the consumers’ requests. And all of this has to be under one system.� Those agents now branching out online are finding that B2B hotel booking platforms providing content from multiple sources is the best solution to combatting online competition; disregarding alternative channels as inefficient and fragmented. “Nowadays, strong reliable technology is key. Systems need to be able to cater to a database of thousands of hotels, millions of pricing systems, thousands of room types and thousands of airlines,� comments Medawar, “it is also definitely an advantage when a travel agent can deal in the Arabic language in this region. It provides a greater chance of creating better intimacy with the

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customer, and it shows you care about their preferences.� Cross-selling potential Another finding of the survey acknowledged the cross-selling potential of the MENA region and how the opportunity to practice it is not yet being apprehended by travel agents. Medawar comments: “I was amazed to discover that travel agents in this zone are not used to up-selling services, versus the Asian Pacific region for example, where this survey was previously carried out and we revealed that travel agencies there were crossselling.� In a sea change from how agencies in other regions work, he continues to

explain that even a guests’ transfer from airport to hotel is often not booked. Breaking the mould however, a recently introduced cross-selling technique has been noticed by Amadeus in UAE in destinations such as Dubai and Abu Dhabi, where agents are targeting business travellers frequently transiting through the country. “A lot of business travellers simply transit through the great holidaying locations of Dubai and Abu Dhabi, so the aim of local agents is now to retain this passing trade by promoting such things as ‘stay in Dubai for two nights’ inclusive of flight deals, to encourage people to experience what is on offer, instead of just the airport,� explains Medawar.

MARCH 2014

68

GM INTERVIEW

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MARCH 2014

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Brand awareness The survey outlines that as consumerism becomes more unpredictable, hotel reviews will come to be increasingly relevant in coming years and brand awareness will no longer be such a critical factor for travellers when choosing a hotel. On the contrary, Antoine clarifies that until user review sites become completely transparent, it will be difficult for them to override a brand’s respect; travel agents who participated in the survey reveal there has been a growing demand for multimedia content within a review; providing proof that the user actually stayed at a property. “For now, I would advise hoteliers to continue focusing on the promotion of their brand, because we have noticed that many consumers nowadays will not book a hotel without brand recognition. “Despite our belief that user reviews will eventually diminish a lot of what a hotel’s branding means, simply because users trust users, and they take their word. “Branding still holds great importance because people are becoming wary of user reviews; you could have friends and family of the competitors writing negative comments. What review sites need is to offer transparency, and proof that the person commenting actually stayed at that hotel. This is where true transparency of what a hotel is all about will be found. Although this concerns the hotelier because they have no control over what is said,� expresses Medawar. Regardless of how the market continues to develop, Medawar considers that in the long scheme of things, overall online influence will never gain the full support of all consumers. “I know I personally would not turn to such social networking sites to decide on my holiday�. For the time being Amadeus, based on the survey, believes that the best average price per room based on the number of days that the consumer stays in a hotel is still coming from bookings made with a travel agent and is fundamentally driving revenues. Concludes Medawar: “This is definitely where the hotel makes the highest yield.�

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Gerald Lawless CEO, Jumeirah Group

Hospitality Business ME magazine The choice of the professionals To advertise please contact: DIRECTOR OF SALES BUSINESS DIVISION

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Sarah Motwali

Email: Julie.Caulton@cpimediagroup.com

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70

EVENT PREVIEW

GIBTM: THE REGIONAL SNAPSHOP With the most successful event yet in 2014, the Gulf Incentives, Business, Travel and Meetings (GIBTM) features new exhibition attractions, concept areas, up to 300 hosted buyers and 2000 trade visitors. Hospitality Business looks at the factors driving MICE across the region

K

icking off at Abu Dhabi National Exhibition Centre (ADNEC) from March 24 – 26, this year’s GIBTM will feature an enhanced education programme, international audience and first time exhibitors from Spain, America, Thailand, Turkey, Saudi Arabia, Czech Republic, UAE, Korea, United Kingdom, Uganda, South Africa and Morocco. International research firm Aranca’s MENA Tourism and Hospitality Report 2013 highlights the draw of the region with its expanding calendar of high profile events, also encouraging significant investment into the MICE industry in general. Data has proven that 50% of business travel to the region is for MICE events and that the sector

Lois Hall, GIBTM exhibition manager, Reed Travel Exhibitions.

QATAR

BAHRAIN

Tourism-related infrastructure investment: $20bn Travel and tourism GDP contribution: $3.4bn, 1.8% of economic activity GDP including MICE: Nearer $13bn or 6.7% of GDP. The WTTC anticipates sector growth of 7.1% in 2013 and an annual average of 4% growth between 2013 and 2023. Infrastructure developments: $15 billion Hamad International Airport (formerly known as New Doha International Airport), with the first phase set to open by 2014 end. $25 billion been has allocated for railway construction and a further $6 billion has been allotted for a new Doha port project to include a cruise ship terminal. Largest venue: Doha Exhibition & Convention Centre will provide 29,000 square metres of conference space Hotel investment: 110 hotels under construction in Qatar, adding a further 19,931 rooms to the current 13,407 room inventory.

GIBTM Hosted buyers: 15 MICE exhibition volume: 116% hike Largest space: Bahrain International Exhibition & Convention Centre (BIECC) 16,000sqm MICE revenue: $4.25m up 34% Hotel investments: DoubleTree Suites by Hilton, Hilton Worldwide $159m, Manama. Hawar Islands, earmarked for development of an eco-tourism destination

JORDAN MICE visitors: 10 – 15% of total tourists. GDP: 15% from tourism, with $3.5bn Transport infrastructure: New terminal at Amman’s Queen Alia International Airport, $750m facilitating 6% per annum growth for 25 years. Hospitality investment: Zara Expo Amman, includes the 316-room Grand Hyatt Amman hotel with 2,500 square metres of meeting and conference facilities; the residential Hyatt Tower; and retail destination, the Zara Centre.

MARCH 2014

still out-performs leisure business with hotels reactively offering packaged group rates and ever more creative meeting spaces. Last years’ event saw in excess of $650,000 of business conducted at ADNEC, over 7,207 pre-scheduled appointments, 2,364 total visits and 302 exhibiting companies representing 35 countries. Representatives from major industry players such as Kuoni Events, TE Connectivity, UHY International, Medicongress, Mary Kay, HelmsBriscoe, FEI Company, China International Medicine Exchange Association International Service Center, Contendam and Portigon Financial Services have all been accepted as Hosted Buyers.

The Expo’s three exhibition halls cover 3,000 square metres plus there’s a 300seat conference auditorium.

CENTRE TREND Incentive group trips combining two Gulf destinations are increasingly popular with planners and participants combining business and pleasure. Infrastructure developments worth $112bn are planned for the Sultanate according to recent data, $56bn of which due for completion by 2017 and the remainder by 202. Capital investment in the transport infrastructure includes the $15bn national rail programme and Muscat and Salalah airport expansion projects valued at $5.2bn. Oman is also transforming Port Sultan Qaboos into a cruise ship hub, funding hotel developments in regional locations such as Duqm, Musandam and Jebel Al Akhdar as well as building the new Oman Convention & Exhibition Centre (OCEC) to open 2016.

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EVENT PREVIEW

GIBTM 2013, images Suzannah Leigh.

EXPO 2020 The UAE will be the first ever Middle East nation to host the World Expo, bringing an anticipated 25m visitors to Dubai, 71% of whom will hail from overseas and an estimated $7bn worth of transport and tourism-related infrastructure development support the hosting. The event could positively impact UAE GDP by as much as $23bn to 2021 and add 277,000 new jobs, Bank of America Merrill Lynch predicts.

LEADING CHAINS Rotana: Expanding in to frontier markets

such as Iraq, Syria and Afghanistan, as well as other regional markets such as Bahrain, Egypt, Lebanon, Oman, Qatar, Saudi Arabia, and the UAE, where Rotana is now present in all seven Emirates.

Residence – the UAE’s first residentialstyle event facility for business and social gatherings.

NEW FEATURES AT GIBTM 2014 JW Marriott Marquis: First hotel in the region with the capacity to sleep, feed and entertain 1,000 delegates at the same time with 1,608 rooms, two ballrooms, 32 meeting rooms and a total of 55,488-square feet of meeting space.

∙ ∙ ∙ ∙ ∙

Park Hyatt Abu Dhabi: Tailored meetings experiences and the launch of The

∙ ∙

MARCH 2014

Africa Pavilion Asia Pavilion European Pavilion Knowledge Programme The seminar programme, sponsored by Qatar National Convention Centre (QNCC). Business Travel @GIBTM GIBTM Official Networking Reception

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