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Saudi hotel industry ‘very promising': Hoteliers
Published in The Saudi Gazette on 07 - 05 - 2015


Renad Ghanem
Saudi Gazette

JEDDAH — Saudi Arabia's hospitality industry is very promising, international hoteliers who have thorough knowledge of the country's industry assert. In an exclusive interview with the Saudi Gazette, three managers of five-star hotels expressed their optimism about the Saudi industry outlook.
Excerpts from the interviews follow:
Serge Ethuin, General Manager of Hotel Le Royal Monceau Raffles Paris, the well-known Parisian landmark and celebrity destination for nearly 90 years, said during a recent business trip to Jeddah that "the hospitality industry in the Kingdom, the market here is very promising, and you can see that this is reflected in the many hotel brands heading to the Saudi market and their eagerness to enter it. This is because the country has a healthy economy and a great potential for tourism.”
• Saudi travelers are known for seeking high-quality service which puts them high on the list of hotels. How do you see that?
The world's leading destinations look to the Gulf and Saudi travelers with particular interest, and try to entice them through a range of tourism options that are conducive culturally, including respecting their desire for privacy. Anybody visiting Paris will know well that it is a destination favored by the Saudi guest, and for us at Le Royal Monceau Raffles Paris Hotel, up to a quarter of all our guests are from this region. As a result, we offer services and experiences with an emotional element and quality that are unparalleled in Paris, because we believe that this is the only way to meet the aspirations of these travel enthusiasts and to etch a milestone in their memories. For this reason, we have added many Arabic-speaking colleagues to our team, and we offer the best in Middle Eastern cuisine, combined with the largest private apartments in the city of lights and 60 suites, so as to allow our guests to experience Paris with an Oriental touch, all in response to the numbers of GCC travelers coming to this destination.
• To be among the best hotels in Paris - the capital of culture, tourism and beauty - is a great accomplishment and a challenge at the same time. What sets you apart at this high level, and how do you maintain it?
Our presence in Paris further enhances our passion for excellence, and since we know that Parisian hospitality is very different, and that the expectations of guests in Paris are the real test for high-end hotel service, our team is made up of colleagues with a passion for exceptional hospitality. I am very proud to say that this passion is conveyed to our guests across all our services. This is what has allowed us to assume the prestigious position of “Best luxury hotel in Paris and France in 2015” among the 1,800+ hotels in Paris, as awarded by Trip Advisor - so yes, Le Royal Monceau Raffles Paris Hotel is the" Crème de la Crème”, as the French say.
For Tarek Mourad, General Manager of Raffles Istanbul, who has also recently visited the Kingdom for strategic meetings with their partners, noted the growing numbers of Saudi guests visiting Turkey, Istanbul in particular.
• You held the position of general manager for a hotel in Saudi Arabia in the past. From this perspective, how do you evaluate the hospitality sector in the Saudi market?
True, I worked in the Kingdom of Saudi Arabia, as well as in numerous other countries in the region in the past. As for the Saudi hotel market, I think it is very strong and highly attractive to international hotel brands, because Saudi Arabia has many cities that have not reached the saturation stage with five-star hotels yet, and these are considered very strategic points for entering this market, which has everything a hotel industry needs in order to thrive.
A few years ago, the global FRHI Hotels & Resorts, which includes the Raffles brand and Raffles Istanbul - recognized this opportunity and entered the market with all three of its hotel brands – Fairmont, Raffles and Swissôtel all in one location: Makkah. This is clear evidence of the Saudi market's power and potential and the strength of our luxury brands in this market.
• Being an executive of a prestigious hotel in Istanbul, how do you explain the increasing number of Saudi visitors to Turkey, making Istanbul one of the most important destinations for Saudis?
There are many reasons why Turkey is an ideal destination for our Saudi guests. First, the distance between the two countries is but a few hours flight. The two countries also share the same Islamic cultural background, which makes Turkey ideal and convenient, both for individuals and their families. It is also well-known that Turkish cuisine, shopping options and the mild climate of the city are very popular amongst Saudi tourists.
Observers of Turkish tourism for the past fifteen years know that the number of visitors from Gulf countries is continuously on the rise, recently accounting for 50% of all visitors to Turkey, and they were mostly from Saudi Arabia. At the Raffles Istanbul, we now enjoy their visits even outside the official holiday seasons, in the form of short trips or even on weekends.
Moreover, a brighter picture of the Saudi hospitality industry is depicted by Ahmad Huzuain, Managing Director of FRHI Hotels & Resorts in Makkah ((Makkah Clock Royal Tower, A Fairmont Hotel; Raffles Makkah Palace; and Swissôtel Makkah), who said that the hospitality industry in general is one of the industries that complement the economy and is closely linked to it, so whenever there is a surge the economy, the industry follows suit.
• Drawing from your long experience in the hotel business around the world, and your experience in the Saudi market, how would you rate the hospitality industry in Saudi Arabia, and in Makkah in particular?
The hospitality industry in general is one of the industries that complement the economy and is closely linked to it, so whenever there is a surge the economy, there is a recovery in the hotel business. Thereby, we can conclude that the hotel situation in Saudi Arabia is at its best. In fact, it has a very promising future, especially in Makkah and closely followed by Madinah, due to the healthy economy of the Kingdom. In comparison, many countries around the world are still suffering from the 2008 economic setback, which greatly affected the hotel industry, and this is what makes Saudi Arabia one of the world's fastest-growing hotel markets. Currently there are about 117,000 direct and indirect jobs in the tourism sector in the Kingdom, a number that is expected to rise in the next five years to 460,000, according to declarations made recently by the Human Resources Development Fund at the Saudi Travel and Tourism Investment Forum, 2015. Added to this is the volume of investment allocated for the infrastructure, and for airports and ports across the Kingdom. All these give strong indications that Saudi Arabia is on the verge of a major expansion in the hotel industry.
• In 2010, FRHI Hotels & Resorts entered the Saudi market, following several international hotel brands. We now notice its continuing interest in the Saudi market. How do you see this?
As I mentioned, FRHI Hotels & Resorts entered the Saudi hospitality market through its widest door in Makkah with all three of its exclusive hotel brands, including the iconic global leader Makkah Clock Royal Tower, A Fairmont Hotel, which will soon open Fairmont Riyadh, Business Gate. FRHI has recently announced two more hotels in Riyadh as well; the first boasts the Raffles brand and the second is a Swissôtel, which shows that our expansion plan in the Saudi market is at its peak. As for the company's hotels in Makkah, the Saudi market is one of the most important markets for a number of reasons; firstly, the change in the behavior of Saudi pilgrims in Makkah. We pride ourselves in being pioneers in effecting this change, where we now attract more families who stay for longer periods than before, and secondly the qualitative development in the hospitality industry which has caused changes in the rules and regulations, waiving previously-required Umrah visas for expat visitors living in Saudi Arabia. These changes help give the Saudi market the utmost importance, and we respond to them quickly and effectively, which helps makes us the first choice for visitors to the Holy City.
• How do you consider working within the company on the one hand, and in Makkah on the other?
Working within a leading international hotel company that is more than a century old has tremendous appeal, and represents a quantum leap in my career without a doubt. Everyone who works in the hotel industry is well aware of the weight of FRHI Hotels & Resorts, so I'm very proud to be part of this magnificent family. As for working in the Makkah hotel market, there has been a very big shift. Before, acquiring experience in Makkah used to be looked down upon, but in recent times things have changed, and expertise acquired in Makkah has now become the best qualification to cope with important and heavy operations, while maintaining high quality standards at the same time. To summarize, I can say that Makkah has become a very modern school and a capital of the global hotel industry, because of its highly unique characteristics that distinguish it from all others.


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