hospitality business middle east, june 2013

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(.130'*-& Radissons Tim Cordon on taking

the helm at Dubais first 5-star

714105-*()5Starwood SVP Guido de Wilde

reveals aggressive expansion plans

41&$*"-'&"563& Almost every hotel has one, but many run at a loss. How to maximise impact in the gym

*/3&7*&8The Hospitality Hygiene Summit

"-40*/4*%&The latest data, trends, tenders and news

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DTCM director of hotel classification, .BKJE"M.BSSJ, speaks exclusively to Hospitality Business Middle East about the development of the Hotel Classification System and the ambitious vision that will welcome 20 million annual visitors by 2020

CONTENTS

cpimediagroup.com JUNE 2013 HOSPITALITY BUSINESS MIDDLE EAST / 1

36 VP SPOTLIGHTSTARWOODS GUIDO DE WILDE AND FRITS VAN PAASSCHEN EXPLAIN HOW THE RISE IN MOBILE BOOKINGS WILL DRIVE THE GROUPS HUGE EXPANSION PLANS

20 GM PROFILENEWLY APPOINTED GM OF DUBAIS FIRST 5-STAR HOTEL, TIM CORDON, REVEALS SOME OF THE CHANGES UNDERFOOT AT THE HISTORICAL CREEK-SIDE PROPERTY

30 COVER STORYTHE FULL STORY BEHIND DTCMS HISTORICAL MONTH, INCLUDING THE NEW HOTEL CLASSIFICATION SYSTEM AND THE 20MILLION BY 2020 VISITOR TARGET

22 ROUNDTABLEHOW MUCH OF A 5-STAR EXPERIENCE CAN I.T. CREATE? AND COULD SELF-SERVICE KIOSKS AND TABLET COMPUTERS CHANGE THE CHECK-IN PROCESS FOREVER?

44 HYGIENE SUMMITBEHIND THE SCENES AT LAST MONTHS HOSPITALITY HYGIENE SUMMIT, WHERE WE TALK CHEMICALS, EQUIPMENT AND ENVIRONMENT WITH THE EXPERTS

48 SPECIAL FEATUREDO YOUR RECREATION FACILITIES MEET THEIR REVENUE GENERATING POTENTIAL? GYM OPERATORS AND REVENUE EXPERTS SHARE THEIR SUCCESS TIPS

REGULARS 04 EDITORS COMMENT 06 NEWS 11 DATA 14 DTCM NEWS 18 TENDERS 50 PRODUCT WATCH 53 APPOINTMENT NEWS 54 JOBS 56 COLUMN

3620

30 22

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&RQWDFW Salwan Finj (+971-56-683 7424) Jeongjun Park (+971-56-681 7029)

COMMENT / EDITORS LETTER

PUBLISHER: Dominic De SousaGROUP COO: Nadeem Hood

ASSOCIATE PUBLISHERSAlex BendiouisDave Reeder

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4 / HOSPITALITY BUSINESS MIDDLE EAST JUNE 2013

Rising stars With leadership

as ambitious as Dubais, such things are not left to chance

Last month saw thousands of industry professionals descend on Dubai for Arabian Travel Market. Almost every exhibiting hotel chain had news of expansions and diversification, CSR projects and staff development drives.

But it was DTCM that really stole the thunder when announcements were made that not only is Dubai on track to welcome 20million visitors annually by 2020, but implementation of the Hotel Classification System is to begin.

While the two received separate announcements there is little doubt they are inextricably linked. With leadership as ambitious as Dubais, such things are not left to chance.

It may be only last year that tourism hit the 10million mark for the first time, but it is now predicted that within seven years Dubai will become the most visited city in the world.

Keep in mind that to reach that target according to the figures by Mastercard the city will need to welcome 50% more visitors to beat current leader Bangkok, at 2012 standards.

Its only common sense that 20million people cannot stay in

5-star luxury accommodation and so Decree No. 17 was issued, legally regulating hotel classifications by type and location.

In addition to offering a transparent reference system for guests, it will open up the much over-looked mid-range and budget markets, ensuring that when Expo 2020 arrives Dubai has a mature and diversified market.

As for the viability of the visitor number targets? Dubais growth is probably the strongest of all the cities listed in the survey. If in doubt, consider the fact that all its competitors have been around longer than the UAE has been recognised as a country.

Year to date tourism receipts stand at $10.4bn and even more demand drivers are to be introduced in the coming years; from theme parks to Expo 2020 itself.

After all, if something is worth doing, its worth doing properly and judging by developments of recent weeks, if there is a city in the world that can demonstrate that, its Dubai.

MELANIE MINGASEDITOR

Hospitality Business Middle East official media partner

28 - 30 September 2013

NEWS WATCH

6 / HOSPITALITY BUSINESS MIDDLE EAST JUNE 2013 cpimediagroup.com

$17bn PROJECTED VALUE OF HOTEL TRANSACTIONS IN 2013, JLL MENA NEWS

Radisson Blu, Muscat.

Oman-based GMs praise weekend changes From this month, Omans weekends will change from Thursday and Friday to Friday and Saturday, in line with neighbouring countries, to

Middle East Hotel Awards winners announcedHeld at Jumeirah Creekside hotel, 2013s Middle East Hotel Awards, welcomed hundreds of industry professionals.

Ahead of The Hotel Show, September 28-30, this year, 98 entries were received in a total of 11 categories covering a range of diverse elements contributing to the perfect hotel stay.

Three new categories were added: Best Hotel, Best Hotel Apartment and Best Marketing Campaign, reflecting both the growth and increasing standards of the MENA industry.

Best Hotel Suite: The Atlantis, Dubai Best Fitness & Leisure Facilities: Grand Hyatt,

Dubai Best Technology Integration: Jumeirah Emir-

ates Towers, Dubai Best Outdoor Area: The Westin, Abu Dhabi Best Restaurant or Food & Beverage Outlet:

Ossiano, The Atlantis, Dubai Best Lobby Reception or Guest Lounge:

Jumeirah Creekside Hotel, Dubai

THE WINNERS ARE:

Best Hotel: Six Senses Spa, Oman Best Hotel Apartment: Marriott Executive

Apartments, Saudi Arabia Best Marketing Campaign: Hilton Worldwide Best Sustainable Initiative: Six Senses Spa,

Oman Best Convention, Conference or Banquet

Facility: Four Seasons Hotel, Riyadh Best Lobby Reception or Guest Lounge:

Jumeirah Creekside Hotel, Dubai

IN FIGURES 98

ENTRIES RECEIVED FOR THE 2013 AWARDS, HELD

ON MAY 22

11CATEGORIES INCLUDING

THREE NEWS CATEGORIES

enhance business relations. But GMs in the sultanate are already eyeing a new weekend getaway market, predominantly from the UAE.

Largely due to the introduction of leisure rates on Saturday which could slash the corporate rate by as much as 40% for visitors the change was welcomed by Radisson Blu Muscat GM, Marius Wolmarans, and Park Inn Muscat GM, Rabi Zein.

Speaking to Hospitality Business during their annual GM conference in Fujairah UAE, both Wolmarans and Zein said they would be using online marketing to capture a new UAE clientele.

There is an opportunity for the future because as of May we have our weekends the same as Dubai and there is the opportunity to chase the UAE weekend market, said Zein.

Today the UAE residents are not coming because our Saturday was a corporate rate, but now it will be up to 40% cheaper. So we are going to be promoting the rates and letting people know that we can add value to their weekend getaways, he added.

During the week, the two Oman properties will also seize on opportunities for business travellers, as the Sultanates infrastructure developments continue.

NEWS WATCH

150 HOTELS TO OPEN THIS YEAR IN THE GCCCitymax CEO: Mid-market is priced outLand prices and management contracts in Dubai are pricing out mid-market hotel brands and potentially jeopardising future visitor numbers, according to Citymax CEO Russell Sharpe.

Speaking toHospitality Business Middle Eastat AHIC, Sharpe concluded that DTCM would have to step in to assist the establishment of a mature mid-market offering, particularly in light of the growth of Fly Dubai and the new Dubai World Central, both of which will bring in ever increasing numbers of mid-market travellers.

Dubai has done a really good job selling sand, sea and the air above in build-up charges, but when we look at new build we have to look at

cpimediagroup.com

On-the-spot hiring is being used by an increasing number of employers in response to the changing workplace demands brought about by Generation Y, says Purple Cubed MD, Lynne Bellinger. But not all hotels are doing it right, she has warned.

There are better ways of conducting on-the-spot hiring. The Emirates Group has got it so right by putting all candidates, regardless of position, through an assessment centre, and this is something that hotels could also do in conjunction with mass recruitment days, she said.

-Citing competition and mass recruitment challenges, Bellinger praised Emirates call back methods and suggested the industry should contractually bound its associates to avoid footing expensive recruitment bills.

Hotels are poaching staff from one another and this is a hugely contentious topic. Hotels should have an agreement to not recruit from other properties unless the applicant has worked for them for at least two years, which is a good indicator of loyalty, and allows the hotel to recoup its hiring costs, she remarked.

Gen Y trends changing recruitment

Marriott Hotels has unveiled plans to open dozens of extended stay properties under its Residence Inn and Marriott Executive Apartments brands, culminating in a near 60% portfolio share for Residence Inn and Marriott Executive Apartments brands by 2020, up from 13%.

Said extended stay brand manager, Diane Mayer: Marriotts extended stay brands are 27% of its global pipeline, but note we are conservative in pipeline stats, so these are approved or under construction. For the Middle East we expect extended stay to be 57% of our distribution by 2020.

Globally, extended stay generates $3.2bn of total revenues a 27% share, from 23% of current hotel distribution. The chain has also announced five new properties in Abu Dhabi as part of its extensive expansion plans.

Marriotts 60% extended stay target for MEA

the land in perspective of the costs and that usually dictates the type of hotel you can build, he explained to Hospitality Business Middle Eastat AHIC.

A few days ago it was declared that the aim is for 20 million tourists to visit annually, by 2020. You cant have 20 million tourists all in top end.

You would need to have a number of government initiators in order to look at where and how you would attract mid-market brands, in todays environment, he added.

Citymax, which recently launched the new Citymax Premiere brand for under matured markets such as Doha and Saudi Arabia, is looking to open 5000 rooms, MENA-wide, with the predominant focus on Dubai.

Russell Sharpe, Citymax CEO.

Purple Cubed MD, Lynne Bellinger.

NEWS WATCH


450 CURRENT GCC HOTEL CONSTRUCTION PIPELINEMENANEWS

NEWS IN BRIEF

KERZNER INKS KSA DEALKerzner International Holdings Ltd, has announced it is to develop Saudi Arabias first One & Only resort on the Red Sea, Jeddah, in partnership with Saudi Oger and Al Khozama Management Company

The 150 room, luxury property, will be located north of Jeddah to capture both business and leisure markets, within a 30 minute radius from King Abdulaziz International Airport. It will feature 230m of beachfront and an area of 95,000 sqm and promises unique entertainment and sport activities on-site.

VICEROY THE PALM ANNOUNCEDViceroy has confirmed that it will open a $1bn property on The Palm Jumeirah, Dubai Q4, 2016.

Real estate investment firm SKAI Holdings has officially announced the construction of a 481 room hotel and 221 furnished residences project that will mark the first property in Dubai for the American chain.Construction is already underway and the property is located at the base of The Palms trunk.

Earlier this year Viceroy CEO Bill Walshe toldHospitality Businessthat he wouldnt rest until the group had opened a property in one of Dubais prime locations. Late last month it was announced that Viceroy, Cape Verde, would also open soon.

SIMPLIFIED VISAS AIDING TRAVELDubais 13.2% surge in airline passenger numbers is due to simplified visa processes and fewer barriers to travel, according to Fly Dubai CEO Ghaith Al Ghaith. In 2012, 57 million people travelled through the airport and a 15.6% increase has already been achieved YTD. Al Ghaith concluded in a statement last month that: Simplified visa processes and lower barriers to travel have contributed significantly to rising passenger traffic to the UAE. Fly Dubai now travels to 33 countries over North and East Africa, GCC, ME, Subcontinent, CIS countries and Europe.

Ritz-Carlton has announced it will open its fourth North African property in Marrakech, Morocco.

The fortress style resort will be located on a nature reserve, 20km from the centre of Marrakech, with 60 hotel suites and 20 hotel villas of two, three and five bedrooms; bars and restaurants; a luxury spa and related leisure facilities.

Ritz-Carlton Marrakech

Project rendering of the new Ritz Carlton Marakech.

Said Herve Humler, President and COO, The Ritz-Carlton Hotel Company: The Ritz-Carlton, Marrakech will be our fourth property in North Africa, each one offering a different proposition, indigenous to the style and location of the hotel or resort. Expansion in this region is unquestionably an essential part of our future growth strategy.

Wyndham, the largest hotel group in the world will open its first property in the UAE, with a 33-storey building at Dubai Marina.

With a current portfolio of 7380 hotels globally, the 497-room Wyndham Dubai Marina is expected to open within the next three years. The chain already runs a number of properties in Saudi Arabia.

Dubai Marina will include 251 luxury suites, 6,800 sqft of F&B outlets, MICE facilities and

Wyndham UAE for Dubai Marina 2,500sqft of spa and leisure facilities. Said SVP and MD, Europe, Rui Barros: Were very excited to be bringing our namesake Wyndham Hotels and Resorts brand to Dubai, following its successful introduction to the region through the spectacular Wyndham Grand Regency Doha. I have no doubt that Wyndham Dubai Marina will be another superb addition to the brand, which we are already growing in key cities throughout the region.

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NEWS WATCH


68% OF SURVEY USES SMARTPHONE OR TABLET TO BOOK TRAVELGLOBAL

NEWSRitz-Carlton has unveiled a global CSR programme that offsets humanitarian activities against sustainability targets.

Spearheaded by vice president of CSR, Sue Stephenson, the initiatives will use unspent revenue and financial savings accrued from sustainable practices, to fund its continuing work with NGOs and charities, including the Make a Wish Foundation and Al Noor School, Dubai.

During her visit to Dubai to promote the programme, Stephenson said: We believe that global companies have a responsibility to implement and inspire positive action in a way that is geographically and culturally relevant. Community Footprints focuses on making

Ritz-Carlton unveils global CSR initiative

Travellers from the UAE and KSA avoid travel sites that are not mobile-ready or do not have mobile booking capabilities, according to research cited by Google.

The data is thought to be the first to provide extensive insight into consumer behaviour for the travel sector and concludes the Internet is the number one source for trip planning for 39% of UAE and 38% of KSA leisure travellers, with the number rising for business travellers to 50% and 48% respectively.

Google also cited the surge in smartphone ownership and improved connectivity in the region as a major driver of mobile usage when planning travel with 48% of survey respondents using their smartphone in the last year to engage in a travel related activity, rising to 69% for specific smartphone or tablet use.

The report also noted travel companies are missing out on the prospect to convert mobile travellers into bookings.

Mobile booking a must

a sustainable difference in the communities within which The Ritz-Carlton operates and, as we extend our physical footprint in the Middle East, we are committed to replicating the success of our global social responsibility and community engagement commitment.

Community Footprints was institutionalised by The Ritz-Carlton in 2002, to tackle three key global issues; child well-being, hunger and poverty relief and environmental responsibility. The company integrates Community Footprints within its business goals, placing it as a foundational piece in the companys business management model, incorporating it as a key success factor, and has developed robust metrics to measure progress. Sue Stephenson, VP of CSR.

Approximately $10bn in new hotels opened in the U.S. during 2012, according to the debut issue of STR Analytics report Hotel Development Almanac and new developments are near their lowest level in the current cycle with only 420 hotels opening last year.

Broken down, the average cost of development per room stands at $164,000, driven by a dominating upscale and upper midscale segment, although New York City ranked above average, demanding investments of around $508,000 per room. The most active market tract for development in 2012 was North Dakota, which saw 23 new hotels open but Hampton

$10bn in new US openings Inn & Suites and Holiday Inn Express had the most U.S. hotel openings in 2012.

With a limited amount of financing available for new developments, the volume of new rooms entering the market is negligible in most cities, said Steve Hennis, director at STR Analytics. With continued improvement in both the general hotel industry as well as the national economy, we are beginning to see the pace of new construction increase.

DATA WATCH

HOSPITALITY BUSINESS MIDDLE EAST / 11JUNE 2013cpimediagroup.com

An outlook on the UAE By Matthew Green, Head of Research UAE, CBRE Middle East

The Emirates tourism sector remains fixed on a solid growth course, with occupancy rates rising across key markets in Dubai, Abu Dhabi and Ras Al Khaimah. During Q1, hotels in the capital recorded double digit growth in revenue and occupancy figures, building on a 2012 performance that saw 13% growth in total guest numbers. Dubai is also having another stellar start to its year, with further growth in tourist arrivals recorded during the first three months, building on the 9% rise achieved last year. Whilst still an emerging tourism destination, Ras Al Khaimah is starting to see a steady rise in its hotel keys, and some very impressive growth in tourist arrivals. After attracting over 1 million visitors in 2012, Ras Al Khaimah is now aiming for 1.2 million during 2013.

Over the past decade, the country has invested heavily into its infrastructure facilities and its tourism marketing capability, with Dubai leading the way in establishing the emirates as a globally recognised holiday destination and one of the most important aviation hubs on the planet. The recent opening of the first Dubai Tourism & Commerce Marketing (DTCM) representative office in Brazil, highlights a continued effort by the government to raise global awareness as part of their strategy to attract visitors from burgeoning tourism markets in South America and beyond.

Together, the UAEs airports handled over 80 million customers during 2012, with the lions share passing through Dubai International Airport (DXB) which registered 71% of all passenger movements. Passenger numbers

have continued to rise during 2013, with Dubai and Abu Dhabi seeing double digit growth during the first quarter. DXB is projected to see over 65 million passengers this year and 98 million by 2020. Significant investment has already been earmarked by the Dubai Government for further expansion plans, following quickly on the heels of the recently completed A380 concourse at DXB. Some of this new investment is likely to be directed towards the new

Maktoum International Airport in Jebel Ali, a facility which has been integral to the 2020 Expo bid.

The UAE currently has over 95,000 completed hotel keys, a figure which could expand by 30% over the next five years with close to 30,000 keys in varying stages of construction and planning. Dubais hotel stock dwarfs the rest of the region with nearly 60,000 keys operational, although other markets such as Doha are slowly catching up. Despite such significant supply, Dubai posted the best performance of any Middle East city with average occupancy rates of 76% during 2012 and one of the best ADR performances of any global market.

Although the regions sizeable hotel development pipeline should be monitored with some caution, the short term outlook for the sector looks to be positive with most key local markets recording growth in Q1

KEY FIGURES

1.2m VISITORS TO RAS AL KHAIMAH IN 2012

13% GROWTH IN TOTAL GUEST NUMBERS IN Q1

95,000HOTEL KEYS CURRENTLY IN THE UAE

71% OF THE 80 MILLION PEOPLE WHO USED THE UAES AIRPORTS IN 2012, PASSED THROUGH DUBAI INTERNATIONAL

76% AVERAGE OCCUPANCY ACROSS DUBAI IN 2012, ONE OF THE BEST PERFORMANCES OF ANY GLOBAL MARKET

65m PASSENGER PROJECTIONS FOR DUBAI INTERNATIONAL IN 2013

DATA WATCH


ADR WATCH Year on year ADR fluctuations across seven key Middle East destinations, supplied by Hotels Combined

PIPELEIN FIGURESEUROPE

814TOTAL PROPERTY PIPELINE

134,912TOTAL ROOMS PIPELINE

ASIA PACIFIC



CENTRAL/ SOUTH AMERICA



CARIBBEAN/ MEXICO



Location 2012 ADR 2013 ADR

Doha $165.99 %154.47

Muscat $159.19 $201.43

Jeddah $239.06 $214.49

Riyadh $262.41 $230.41

Mecca $217.06 $182.59

Manama $185.94 $173.16

Kuwait City $203.98 $184

EXTENDED STAY As Marriott International announces huge investments into its two extended stay brands (see MENA News pages), the Highland Group shares its key findings about the sectors global market value

ALL THE WAY BACKRevPAR for the extended-stay sector as a whole hit $58.80 last year - surpassing the pre-recession peak of 2007. Broken

down by type, the upscale sector is above its 2007 levels while the mid-price and economy sectors are slightly

below the previous peaks. Overall, RevPAR grew 7 percent in 2012 compared from the previous year.

0

20

40

60

80

100100

80

60

40

20

02005 2006 2007 2008 2009 2010 2011 2012

ECONOMY MID-PRICE UPSCALE TOTAL

$58.80 +6.9% +4.2%2012 REVPAR 2012 ADR EXT STAY ONLY 2012 ADR HOTEL ONLY

(Source: The Highland Group)

DATA WATCH


PIPELINE FIGURESSUPPLY GROWTH (POTENTIAL)

+43.0% MANILA

+25.2% MUMBAI

+23.8% JAKARTA

+19.7% BALI

+13.9% BRISBANE

+11.7% KUALA LUMPUR

+11.4% PHUKET

THE GLOBAL PIPELINE, BY STR GLOBALChain scale Existing supply (as of April

30, 2013(In construction Total active pipeline*

Luxury 53,639 15,488 24,429

Upper Upscale 91,230 21,836 37,053

Upscale 74,661 13,395 21,920

Upper Midscale 55,145 2,857 6,210

Midscale 22,563 1,026 3,618

Economy 5,351 519 1,270

Unaffilated 401,213 13,920 25,845

Total 703,802 69,041 120,345

Middle East/Africa pipeline by Chain Scale segment for April 2013 (number of rooms)

* Includes those projects in the construction, final planning and planning phases.

GLOBAL PIPELINE, 2013, STR GLOBAL

EUROPE ASIA / PACIFIC C/S AMERICA MEXICO/CARIBBEAN

Figures from STR Global demonstrate a robust pipeline around the world, however Asia Pacific continues to lead the way - significantly - showing that geographical diversity, economic strength and huge population growth are the key driving factors. Current pipeline numbers incorporate projects in the Construction, Final Planning and Planning stages, but does not include projects in the Pre-Planning stage.

Among the markets in the region, Manila, Philippines, reported the largest expected supply growth (+43.0 percent) if all 9,968 rooms in the markets total active pipeline open. Six other markets reported expected room growth of more than 10 percent: Mumbai, India (+25.2 percent with 5,117 rooms in the active pipeline); Jakarta, Indonesia (+23.8 percent with 8,115 rooms); Bali, Indonesia (+19.7 percent with 7,587 rooms); Brisbane, Australia (+13.9 percent with 1,698 rooms); Kuala Lumpur, Malaysia (+11.7 percent with 3,611 rooms); and Phuket, Thailand (+11.4 percent with 2,928 rooms).

Looking ahead to 2014, Asia is unlikely to lose its stronghold. Europe will open a further 233 hotels and Caribbean/ Mexico, 53.


DTCM NEWS

20 Million by 2020 - The next step

More than 120 tour operators and travel agents from Spain were hosted in Dubai last month, with the Emirate staging one of the Spanish tourism industrys most important congresses.

The FETAVE (Federation of Spanish Travel Agencies and Territorial Associations) Congress is an annual event aimed at promoting the flow of tourism and identifying future tourism trends. The 2013 edition was

HH Sheikh Mohammed bin Rashid affirmed that the UAE has succeeded in placing itself amongst popular tourist destinations on the global map of tourism, walking confidently into the future through launching ambitious developmental initiatives and high quality projects. His Highness also noted that building a robust infrastructure with high capacity and providing quality high-end services to all the visitors of the UAE is an ongoing process that also necessitate keeping up the pace of development to meet the requirements of the global markets, bearing in mind changes that may occur in such requirements so as to preserve the countrys gains and earn more achievements in the tourism

Spanish TO congress welcomed

sector that is full of opportunities.The economic importance of the

tourism sector, cannot be ignored and it is hoped the visitor numbers will triple tourism receipts. His Highness also said that he firmly believes in Dubais ability to reach even a substantial tourist influx in light of the fact that Dubai will shortly witness the implementation of wide new range of projects that will represent new elements of attraction and will open the door to welcoming larger numbers of visitors into the country.

HH Sheikh Mohammed went on to say: We are aware that such goals are ambitious, but more important than ambition is realizing these goals in reality. We are confident that the Department of Tourism and

Commerce Marketing is capable of achieving what it aims for given the previous accomplishments and the positive results attained. However, Sheikh Mohammed said, We need to bear in mind that tourism is a broad service sector that one entity cannot solely be held responsible for its development; therefore, it is important that other government departments and institutions share this responsibility and join in developing this sector in order to strengthen our macroeconomic capabilities. Moreover, we expect the private sector to play a similar role in supporting this goal within the framework of the partnership that we have established decades ago. This partnership between the government and private sectors is a source of our pride and we will do all what it takes to make it a success.

The congress is the first in a number

of events to be held in 2013.

organised by Dubais Department of Tourism and Commerce Marketing (DTCM) and its partner Alpha Tours, as part of DTCMs ongoing positioning of Dubai as the worlds leading tourism and commerce destination.

The Spanish market is of increasing importance to Dubai, with 41,000 Spanish visitors staying in Dubai hotels last year, an increase of 20%

from 2011. During the five day congress, the participants took part in tours of the city and key attractions and had numerous meetings with hoteliers to discuss future business partnerships.

Saleh Mohamed Al Geziry, Director of DTCM Overseas Promotions and Inward Missions commented: It has been our pleasure to host the congress, one of a number which the city will host during 2013. It gave us the opportunity to promote the emirate to key decision makers in the Spanish market and to provide information on Dubais tourism attractions and hotel offerings, with the ultimate aim being to further increase the number of Spanish tourists to Dubai. Each congress and event that we host is an opportunity for us to both demonstrate the uniqueness of Dubai and to play a small role in the future success of businesses and industries. We thank both Alpha Tours for their partnership in hosting the congress and FETAVE for choosing Dubai as a venue for the congress.

DTCM NEWS


KEY FIGURES

92% OF ATTENDANTS WERE FROM HOTELS

4% OF ATTENDANTS WERE FROM HOTEL APARTMENTS

38% OF ATTENDANTS WERE FROM 5-STAR ESTABLISHMENTS

11% OF ATTENDANTS WERE GMS

Sustainability adding up the mathsDuring DTCMs Dubai Green Festival hoteliers and environment managers met at Jebel Ali Beach Resort, Dubai to learn, discuss and debate the latest green initiativesWater monitoring

NOWHERE AWARENESS INTEREST DESIRE ACTIONS

Waste monitoring

NOWHERE AWARENESS INTEREST DESIRE ACTIONS

5% 6% 9% 9% 70%9% 9% 9% 15% 58%

70% ACTIONS

VS 30% NO ACTIONS

58% ACTIONS

VS 42% NO ACTIONS

FINANCIAL - ROIWHAT WHY HOW SUPPORT NEEDED

Measurement To know current consumption Provide information support for

decision making Verification and forward planning Dedicated budget

Sub meters Auditing Identification of equipment longevity

Government Subsidize Reward system Regulatory

Marketing To identify additional businesses and opportunities Show that is possible to minimize investment

Basis and statistics to move on and plan Consultants

Risk calculation To assess the risk , safety and issuance Assess the risk , safety and issuance Guest satisfaction survey link this measure with additional revenues Collect statistics Share knowledge,

best practices

WHAT WHY WHO HOW SUPPORT NEEDED

Design of the hotel building Requirement for green initiative for energy saving

Engineering Architects DM

Hotel design Licensing

Operators Owner Dubai municipality

Energy Management Reduction in fossil fuel Reduce carbon footprint Financial cost reduce

DM All hotel levels

Solar energy encouraging the development

DM Incentives Advisors

Waste management systems Recycle Government - Users Garbage compactors Incentives for garbage collection

DM

Water management systems Cooling towers Hotel infrastructure Sewage water A/C conditioning

DM

INFRASTRUCTURE

cpimediagroup.com

What have been your stand out moments in the industry since you arrived in 2005?The Middle East has the ability to grow so quickly and I have seen some dramatic changes over the years. For example, Dubai started out as simply sand and sea and within a few years, we had many of the worlds leading hospitality brands springing up at pace, and it really went from strength to strength. The world economic crisis certainly was a tough time for the industry in general but, amazingly, occupancy figures remained quite stable compared to the rest of the world. Thats the magical thing about the Dubai hospitality industry it is resilient.

The Middle East will always have the threat of being affected by world events and particularly political events in neighboring countries. But yet it survives and recovers unlike any other market I have seen. Since the market has bounced back, Dubai has truly become one of the worlds most unique hubs for all types of travel.

As sectors architecture & interiors are making their mark in 2013 why do you think it is so popular?I believe that diversity is the key. In the past, interiors and architecture in the Middle East has always had its own style modern contemporary with traditional Arabic influence. But now we are seeing different styles and new approaches come into play. I particularly have noticed a strong influence from Northern Europe here in recent times very simplistic design and clean lines.

Style and substance Middle East Hotel Awards judge and founder and managing partner of Hospitality Design Partnership, Meelis Kuuskler, moved to Dubai with Jumeirah Group at a time when the industry was a benchmark for success. He shares his predictions for a rise in the boutique stay and other 5-star alternatives

Creating interiors and designs that are inspiring and new are most certainly contributing to the popularity and increasing growth that we are seeing right across the sector. The Middle East is now at the forefront of worldwide trends and I believe that hotels in the Middle East are finally coming around to the idea that each part of an interior should have a purpose, other than just a cosmetic one.

What do you see as the major growth areas for the next 1-2 years?I believe the region will begin to see a move away from 5-star high-end luxury properties, to make the region more user-friendly for travelers of all types. Of course we will always have the luxury market, but we will see more budget and 3 and 4-star properties being developed, to cater for the increasing stopover market we are seeing due to increased flight routes.

Also the boutique hotels being developed across the region give visitors increasing options to find more individual, intimate and welcoming settings. I think this is good for the industry as a whole, as

it will make the Middle East

a estination that people want to

visit more regularly,

rather than just once a year.

What do you see as the biggest threats for the industry?The lack of cross-promotion across the region could become a problem if not tackled. Each country really needs to support one another to make the Middle East as a whole a destination, rather than a city on its own. Political events in nearby countries will also continue to pose a potential threat, especially for international travelers. The continued growth of Africa as an emerging destination could have either a negative or positive impact on the Middle East but that is yet to be seen.

As a Judge for the Middle East Hotel Awards in both 2012 and 2013 have you noticed any significant changes in the number or caliber of entries this year?We saw more than double of entries in 2013 than 2012, and the hotels that participated were more wide ranging. It was good to see entries from across the region, including Egypt, Kuwait, Oman, Qatar and Saudi Arabia. It has been an inspiring experience to see the hospitality industry at his best. The awards are a true example of how the Middle East is leading the world in hospitality

Meelis Kuuskler is the Founder and Managing Partner of Hospitality Design Partnership, a boutique hospitality consultancy service offering a range of solutions from design and project management, brand development, F&B, feasibility and technical services. He has over 18 years experience in the hospitality industry across Europe and the

Middle East.

16 HoSpitAlity buSinESS MiDDlE EAst JUNE 2013

i believe the region will begin to see a move away from 5-star high-end luxu-ry properties, to make the region more user-friendly for travelers of all types.

16 THS advertorial.indd 16 6/4/13 11:55 AM


TENDERS

TendersAll the latest tenders information you need to know about

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

NEW TENDERS

$800mMALL OF EGYPT RETAIL AND

LEISURE COMPLEX

NEW AND CURRENT PROJECTS

Client name: Katara Hospitality (Qatar)Address: Katara Hospitality Bldg., C Ring RoadCity: Doha Postal/Zip Code: 2977Phone: (+974) 4423 7777Fax: (+974) 4427 0707eMail: [email protected]: http://www.katarahospitality.comNature of work: Provision of acquisition and installation of new flatwork ironer system and removal of old system at a hotel.Cost of Tender Documents ($): 195 Last date of submission: June 10, 2013

Client name: UAE University (Al Ain)Postal/Zip Code: 15551Phone: (+971-3) 767 3333 / 713 5950 / 713 5947Fax: (+971-3) 713 4343eMail: [email protected]: http://www.uaeu.ac.aeNature of work: Carrying out preparing and providing meals for the students to a university.Cost of Tender Documents ($): 1090 Last date of submission: June 16, 2013

Client name: Ministry of Municipal & Rural AffairsAddress: Nassiriya StreetCity: Riyadh 11136 , KSAPostal/Zip Code: 955Phone: (+966-1) 456 9999/ 441 5434Fax: (+966-1) 456 3196/ 441 2118eMail: [email protected]: http://www.momra.gov.sa

Nature of work: Construction and operation of a hotel for a municipality.

Cost of Tender Documents ($): 135 Last date of submission: June 29, 2013

Client name: Oman Establishment for Press, Publication & Advertising

Address: Madinat Al Illam, Al QurumCity: Muscat PC 100 Postal/Zip Code: 974Phone: (+968) 2469 4599Fax: (+968) 2460 0806eMail: [email protected]: http://www.omandaily.comNature of work: Provision of (2 Nos.) meals (Iftar and Suhoor) during Ramadan 1434HD for the employees of a Government authority.Cost of Tender Documents ($): 70 Last date of submission: June 27, 2013

Project Name: DoubleTree Suites by Hilton HotelDescription: Construction of five-star DoubleTree, Suites by Hilton Hotel comprising (350) rooms, which will be surrounded by cafes, shops and restaurants. Client Name: Hilton International (Dubai) Country: Bahrain Status: New Project

Project Name: Hotel Residences Tower Project - Dubai Maritime City Development Description: Construction of a new luxury tower consisting of serviced hotel residences at Dubai Maritime City Development. Client Name: Damac Properties (Dubai) Country: UAE Status: New Project

Project Name: The Beach Mixed-use Development Project - Jumeirah Beach Residence Description: Development of The Beach mixed-use scheme comprising retail, food and beverage outlets as well as entertainment facilities.

Client Name: Meraas Development (Dubai) Country: UAE Status: New Project

Project Name: Al Bait Hotel Project Sharjah Description: Construction of luxurious 5-star Al Bait Hotel.Client Name: Sharjah Investment & Development Authority (Shurooq) Country: UAE Consultant: Godwin, Austen Johnson Architects (GAJ) - Dubai Budget (USD): 27,000,000 Status: New Project

Project Name: One & Only Hotel Project - Obhur District Client Name: Construction of One & Only Hotel comprising (150) rooms. Client Name: Al Khozama Management Company (Saudi Arabia) Country: Saudi Arabia Contractor: Saudi Oger Limited (Saudi Arabia) Status: Current Project

HOSPITALITY BUSINESS MIDDLE EAST / 19JUNE 2013cpimediagroup

TENDERS

AL BAIT HOTEL, SHARJAH$27m

Project Name: Hilton Garden Inn & Double Tree by Hilton Project - Riyadh Financial DistrictClient Name: Construction of Hilton Garden Inn hotel comprising (260) rooms and Double Tree by Hilton comprising (110) serviced apartments.Client Name: Hilton International (Dubai) Country: Saudi Arabia Contractor: Mawten Hospitality LLC (Saudi Arabia) Status: Current Project

Project Name: Al Baleed Resort Project Description: Development of a high-end resort in Al Baleed Village comprising a total of (136) rooms and associated facilities.Client Name: Musstir (Oman) Country: Oman Contractor: Carillion Alawi L.L.C (Oman) Status: Current Project

Project Name: The Address The Boulevard Tower Construction Project - Downtown DubaiDescription: Construction of 340-metre, 63-storey The Address The Boulevard Tower comprising a 5-star hotel and serviced apartments consisting of studios, one-two-three and four-bedroom apartments. Client Name: Emaar Properties PJSC (Dubai) Country: UAE Consultant: Atkins International (Dubai)Contractor: Brookfield Multiplex Constructions Middle East L.L.C (Dubai) Status: Current Project

Project Name: Hilton Waldorf Astoria Hotel Project - Doha West Bay Description: Construction of a 42-storey Hilton Waldorf Astoria Hotel. Client Name: Hilton International (Dubai) Country: Qatar New Project

Project Name: Water Discus Underwater Hotel Project Description: Construction of Water Discus Hotel comprising two discs - one under the water and one suspended above the water. Client Name: Dubai Drydocks World Country: UAE Status: New Project

Project Name: Salalah Intl Medical City

Description: Construction of an International Medical City in Salalah comprising facilities such as a state-of-the-art diagnostic centre, a healthcare resort and healthcare education complex, including a luxury hotel and wellness centre. Client Name: Apex Medical Group (Saudi Arabia) Country: Oman Consultant: W S Atkins International (Oman) Budget (USD): 1,000,000,000 Status: New Project

Project Name: Barwa Al Khor City Project Description: Development of Barwa Al Khor city comprising villas and townhouses, terraces, flats and mixed-use areas, 2 sprawling hotels - one being a five-star and the other four star, a superior shopping mall, 4 top schools, 250,000 square metres of office space, a mosque and an international golf course, including amenities such as a clinic, library, information centre, public and private beaches. Client Name: Barwa Al Khor Company (Qatar) Country: Qatar Consultant: Cansult Maunsell (Qatar) Budget (USD): 8,000,000,000 Status: New Project

Project Name: Msheireb Downtown Doha Development Project Description: Development of Msheireb Downtown Doha (Formerly Heart of Doha City) mixed-use scheme comprising several districts, including a residential and mixed-use quarter, a retail quarter, a heritage quarter and a commercial area. Client Name: Msheireb Properties (Qatar) Country: Qatar Consultant: Gensler Associates International (USA)Contractor: Hyundai Engineering Corporation (South Korea)Budget (USD): 6,000,000,000 Status: Current Project

Project Name: Kempinski Hotel Project Jeddah Description: Construction of 65-storey, five-star Kempinski Hotel comprising (242) hotel rooms and (104) serviced apartments. Client Name: Assila Investment Company (Saudi Arabia)

Country: Saudi Arabia Consultant: Drees & Sommer AG (Germany) Status: New Project

Project Name: Grand Heights Mixed-use Development Project Description: Development of Grand Heights mixed-use scheme comprising 3,500 residential units, shopping outlets, restaurants, entertainment and sports facilities, a hospital and schools. Client Name: National Real Estate Company (Kuwait) Country: Egypt Consultant: KEO International Consultants (Kuwait)Contractor: Orascom Construction Industries (Egypt)

Budget (USD): 1,000,000,000 Status: Current Project

Project Name: Mall of Egypt Project Description: Construction of Mall of

Egypt comprising (380) stores along with associated retail and entertainment

facilities. Client Name: Majid Al Futtaim Group (Egypt) Country: Egypt Contractor: Orascom Construction Industries (Egypt)Budget (USD): 800,000,000 Status: Current Project Project Name: Crowne Plaza Oman Convention & Exhibition Centre Project Description: Construction of a hotel comprising (296) rooms featuring extensive meeting and event facilities with a separate function centre that will include a glamorous ballroom with terrace, a boardroom and three large meeting rooms. Client Name: Oman Tourism Development Company S.A.O.C (Omran) Country: Oman Status: New Project

Project Name: Sowwah Central Project - Al Maryah Island Description: Development of Sowwah Central scheme comprising a super-regional shopping centre, a hotel, serviced apartments and flats. Client Name: Gulf Capital Pvt. JSC (Abu Dhabi) Country: UAEBudget (USD): 1,000,000,000 Status: New Project

GM PROFILE


There are few things more difficult to juggle than moving to a new city, in a new country, to take over one of its oldest hotels and all while being thrown headlong into an extensive renovation project.

But for Radisson Blus newest GM, Tim Cordon, thats exactly the challenge he is facing and its compounded by the city in question having probably the most competitive hospitality market in the world.

Cordons appointment was announced in February, when he replaced Janet Fitzner, who moved to Radisson Blu Resort, Fujairah.

With 13 years experience under his belt not to mention a degree in mechanical engineering he says of the challenge: Coming here to work for the first time, even from a city as competitive as London, I thought Id seen fierce competition but you come to Dubai and you realise its incredibly fierce.

Cordons entry to the industry is one he describes as non-conventional, falling into hospitality through part time jobs while studying for a degree in mechanical engineering.

After a stint in hospitality sales, he started his career as operations manager at Crowne Plaza Edinburgh, Scotland, and it was when the property was re-flagged Radisson Blu that his career with Carlson Rezidor began.

Moving next to what was then Radissons largest UK property, Radisson Blu Manchester Airport, he took on the role of GM and went on to

I thought Id seen fierce competition but you come to Dubai and you realise its incredibly fierce

position the hotel as one of the groups top 20 globally.

Having spent 10 years with Carlson Rezidor in the UK, Cordon most recently held the position of GM at the 1000-room Cumberland, Park Lane, London, before returning to the group for his move to the Middle East.

It was a fantastic experience to go outside the company and see how other people do it. In my assessment they didnt do it very well, but then Radisson called to say there was an opportunity, and now after three years later Im back with them here.

A PIECE OF HISTORYThe 276 room property located along Dubais Deira Creek is literally where the local industry started.

The first five-star property in a city that is now boasts one of the highest concentrations of hotels of any place in the world, it was opened by Intercontinental on March 5 1975, and handed by its Galadari Group owners to Carlson Rezidor on October 1, 2006.

Credited with the invention of the world-renowned Dubai Brunch, and with a legacy of famous and even royal visitors, their pictures lining the lobby area, it is these elements that will become the marketing USP post-renovation works.

The fantastic legacy and history here is unique in itself for Dubai, because everything else is so modern and new. This hotel was a trailblazer for what was to follow, Cordon

GM PROFILE

As its renovation project gains momentum, Radisson Blu Deira Creeks newly appointed GM, Tim Cordon, explains why works will shun the zeitgeist for modernity to embrace the hotels rich heritage

A i i j i

Above: The hotel as it looked when opened in 1974. It was Dubais first 5-star . Right: GM Tim Cordon.

1975INTERCONTINENTAL

OPENS FIRST FIVE-STAR PROPERTY IN DUBAI

GM PROFILE


To have a property that actually speaks of the history of Dubai, right back to the time when it was pretty much a desert and a road, is something we intend the make the most of

shares. At that time, Dubai was quite a different place, so there is a lot to do in terms of bringing this hotel up to the modern Dubai level to compete with the new hotels, while recognising its legacy. To have a property that actually speaks of the history of Dubai, right back to the time when it was pretty much a desert and a road, is something we intend the make the most of, he explains.

The detailed plan is phased to be completed within 24 months, without closing, and has already encompassed the pool deck, tennis court and pool bar area, all of which are due to be reopened by year end.

Entertainment plays a key part in the plan, with a number of new dining concepts to be introduced across the

16 existing F&B outlets, including the first traditional Emirati restaurant, which will link to a raised pool and decking area, providing an impressive vantage point of the creek.

We think we are ideally suited, not only from a location point of view but also the history of the building, to try and create the premiere Emirati dining experience in Dubai, Cordon says, revealing that the budget for this element of the project alone will fall in the region of AED10-12m.

The Emirati restaurant will appeal to locals, but this area of town is also a hotspot for tourists. I think its something that is an untapped market for them as most want to experience the local culture and taste of the place they are visiting, he observes.

Eventually the work will also take in guest rooms, working with the existing structural fabric of the building while overhauling what is offered in terms of design and furnishings.

Details are closely guarded, but Cordon hints at an aesthetic that will be unique to the property but very much define the style of the hotel.

He adds: Its a delicate balance because you can go super-modern, and there are many hotels that do that, but here we are challenging our design team because not only do we want to meet the demands of the modern business and leisure traveller, but we also want to be able to recognise the heritage of this property and the place it has been for the last 30 plus years.

I wouldnt call it a soft renovation, its more technical than that, but it isnt a full configuration of the size of the rooms.

Market appeal While the point of any renovation is to update and enhance, an evolution in the market appeal isnt entirely the aim here.

One of the things about this hotel is that it has a fanbase and they are incredibly loyal, so we dont want to isolate them.

Leveraging the power of a low staff turnover rate, Cordon says the level of personalisation in service is one that can only be achieved by employees who have worked for the property for decades, in some cases.

While it is about attracting new markets, its also about showing loyalty to our customers and what we stand for, he adds, naming the variety of the hotels offerings as his own favourite aspect. The consumer is so world weary to another new hotel, restaurant, brunch, that you have to be very careful in your positioning and in such a fiercely competitive and dominant market it is always going to be a challenge.

But its one that we feel we are very suited to because we have something nobody else does.

ROUNDTABLE

ADDING VALUE Technology is changing the world around us, but what is the impact on guest relations? How can owners be persuaded to invest? And do the innovations begin and end with IT or is there scope to enhance the reach of marketing practices?


L-R: Prasanna Rupasingh, IT director, Kempinski Mall of The Emirates; Fabien Schmittmann, Dubai AICR president & director of front office at Millennium and Copthorne Airport Hotels; Rushdy Mubarak, IT manager, Radisson Blu, DMC; Santosh Nair, IT manager, Radisson Royal; Aime Musonerwa, director of IT Middle East, Mvenpick Hotels and Resorts; Paul McNeil, Infor; Andrew Turton, director of sales, APAC and MEA Hospitality Solutions, Infor; Darin Davies, AICR president & director of front house operations, Marriott Marquis ; Gurav Shanker, FoH manager, Radisson Blu Media City.

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From the service point of view, what are guests saying about the level of interaction allowed by current FoH systems during arrival?Darin Davies: There is a hesitation that if you remove the personal interaction, you may lose some of the 5-star deluxe element of the check in. However there is certainly drive to change things and I think the airline industry in particular has shown what can be achieved in terms of increasing staff productivity with kiosks.

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We at International Association for Front Office Managers (AICR) talk about this often but believe that from the guest perspective, a hotel is going to be reluctant to forego that personal connection with the guest because the opportunity to say good afternoon and welcome to the hotel is lost.

Check in and welcoming is all about ensuring service is appropriate and meets guest needs. So we will certainly be looking for a solution that is simple and reliable, fast, easy and applicable.

Fabien Schmittmann: We always include speed of check in on the guest feedback survey but that comes back to the actual speed of the IT and how much whoever is serving the guest is interacting with the guest and keeping them busy. If you are talking to them for 20 minutes, the check in wont be perceived as slow.

After speed, automation to ensure we dont spend too much time away from the guest is also important.

From the CIO perspective, how easy is it to achieve the objectives of speed, interaction and connectivity? Prasanna Rupasingh: For a while now we at Kempinski have been looking at different solutions to help FoH, but have not found the simplicity we need. Thats a key element.

Over eight months, we refined our systems to customise and mobilise the check in process. Now check in is on tablets and the room key is sent to guests mobiles. Even the signature and passport scan has been mobilised.

At check out the same concept applies, which works well when there is a high demand for check out. We mobilise staff with tablets and they can access the entire guest bill and process the credit card details, which are then emailed to the guest.

We are the first MEA property to launch this and we are still developing it. We have challenges in chip and pin authorisation, because that requires a different device, but it is on-going. However, we are in touch with multiple vendors to make this happen.

How much does the procurement and connectivity of multiple systems slow down the development of such a solution? PR: In hospitality the adoption of this technology has been slow. For example DHL had similar software years ago. There are multiple reasons why we are not there yet, but then again if the staff are not confident and if the system is not simple, it is never going to work.

The challenge here is that, traditionally we should be looking at

This isnt just guest satisfac-tion, its guest optimisation.


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cpimediagroup.com

how a department works and how we can provide a solution, as IT. Rushdy Mubarak: It is the IT department that brings all the others together and from my point of view, a system that is implemented in the right way is one that works for us and the guest. FS: There is no one provider for all this. You use payment systems, key card systems, passport scanners, a phone interface, its very complex. Even the check in and check out systems are different and in some tests an iPad will crash because of this. It comes down to simplicity. We make our lives difficult with too many different vendors, too many fancy things. We should make things simple, quick and easy to use with just the basic programming like airlines and the kiosk check in. Aime Musonerwa: For me this is a journey. It starts from the moment a guest arrives at the airport. They can access emails and internet in the air, so we continued that connectivity by equipping our cars with WiFi, not just to check emails but begin the check in process or prepare your pre-check in requirements. Our drivers are no longer the guys from a 3rd party company who drive limousines, they are part of the arrival experience.

But with this technology its more about culture. Its not just about handling that iPad and the synergy of those systems, its the culture for accepting the technology. DD: And its not just the acceptance of the staff, but the guest. Fifteen years ago people didnt feel safe using ATMs. AM: In a city like Dubai where you receive guests from everywhere, speaking a number of different languages, any system needs to be able to adapt to that. Today we are using translation tools to bring services to our guests, but both the accuracy and culture of international guests in that translation are a challenge.

Each guest profile has data on languages and can also store other preferences, that should go to the

room for the welcome message, to the restaurants, concierge.

All these are factors which, if you look to the future we need to focus on.

What about staff training? DD: What one has to be really cautious of, is that the people you are expecting to use this facility are fairly junior members of the team and they are handling something that is fairly complex. As much training as you can give them, they are always going to take the road of least resistance.

They dont want to be conducting a mobile check in on the 60th floor and be unable to access the room because the system isnt working. Their trust and confidence will be lost. Its a vicious circle because you cant develop something without going through that process. You will always find resistance in the service provider the associate or receptionist if they cannot trust in what that technology is able to deliver. FS: Take the iPad you want to use for the check in. that is successful as a normal gadget because its simple. It doesnt come with a manual. People pick it up and start exploring it and that familiarity means we dont need to retrain staff. AM: There does needs to be synergy in the back end and that person needs to use that tool effectively in order to produce effective and accurate data, otherwise the front end interface is useless. All these things require infrastructure and discipline and that discipline can only be achieved with training. To me, thats what we need to bring together. iPad, mobile technologies, theyre amazing, but its only the tip of the iceberg, and it all has to be integrated.Santosh Nair: Investment is needed to achieve simplicity and not just in

a single property but across an entire chain, linking systems. RM: Its easy to say make it simple but the back office operations require a lot of teams to work together. Its easy to check in, but there are a lot of other operations to integrate here.

Whats the vendor perspective on this?Andrew Turton: We are in the middle of a big cycle change at the moment. November 2012 was the first time that Android and Tablets outsold PCs and by 2015 more people will be entering transactions through those devices than through a PC. The industry is moving.

There are always basic functions that will have to be done on a desktop terminal, but if guests are changing we are changing.

Looking at this from a much wider perspective, where can we start the process of interaction? Almost down to the point of the reservation being made. Not every guest is going to use it, but more and more will.

Check in has to be simple. I have been asked the type of pillow and newspaper I want at 2am when I just want to sleep and I do accept there are necessary functions and a need for interaction but does it have to be at that point?

Surely interacting with the guest over a longer period, then providing them with that option to self-service for other elements of their stay, would be more beneficial?

And what about the 3-star properties or ones who have large parties arriving from China or Russia? Would you want to open up your check in to the group leader so that when they are transferring from the airport they can directly scan in information? It could also minimise discrepancies typing information in

VENDOR VIEWS

AATIF KHAN, KPTACTECHNOLOGIES AND CONSULTING

Currently, we see hotels reducing waiting time for guests while providing dynamic information deliv-ered through iPad/Android applica-tions.

Information on large displays is also gaining acceptance in the FoH area, where not only commercial advertisements but also informative content is delivered and can be changed and revised almost instantly with the power of cloud computing.

Recent market intelligence from IDC shows a near 140% increase in tablet sales Q1 2013, compared to last year, and the trend is evident in this industry, also. Some major hotel chains in Dubai are in the midst of a Tablet frenzy, installing iPads in each room and even giving away Tablets to guests. Restaurants are installing iPads on every table to replace paper menus.

An average cost of a high qual-ity tablet is around $350 - divide that by 365 days of the year and the cost of a single tablet is reduced to less than $1. For that price, high-end restau-rants in the region can afford to buy 10 iPads by selling just one orange juice daily. What these tablets also provide is one of the best advertisement slots, which can bring amazing ROI. It also helps in reducing re-printing costs.


Specialized for Hospitality.Infor 10x is the latest release of Infors proven business applications, delivering innovative new capabilities in the areas of social business, mobility, analytics, and integration, as well as major enhancements across all of the Infor Hospitality applications. With the Infor 10x platform, you can change the way work is done outside and inside your properties so you can focus on improving guest service and driving protability.

Think exible and collaborative. Think beautiful, scalable, integrated, and mobile. Then start imagining all the things youll be able to accomplish.

Copyright 2013 Infor. www.infor.com. All rights reserved.

Visit us at booth 401 during HITEC 2013, June 24-27 in Minneapolis, MN. Not visiting HITEC? Call +1.800.260.2640 or email [email protected].

www.infor.com/hospitality

ROUNDTABLE

cpimediagroup.com26 / HOSPITALITY BUSINESS MIDDLE EAST MAY 2013

There is a bigger picture of money and once every-body under-stands there is a gain in profitability, its an easier sell


languages we are not familiar with. More players are coming into

the market who are not tied to a client server approach and they use technology that can sit on a wider level. The same issues of performance and reliability still fall to IT, but the solutions would be readily available.

We are strong believers that technology will now start supporting business, rather than driving the need to uniform systems and that means the enhancement of systems will lead to marketing opportunities. Gurav Shanker: At Radisson Blu Media City, 80% of our guests are business travellers so the option for self-service is a wow factor. But for core hospitality where is the guest relations? If you remove, or minimise that interaction, how do you upsell to the guest or promote the groups loyalty programme? PR: The problem today is that you can have 1000 guests in a hotel and no way of channelling marketing towards them. You spend a lot of money getting them to the hotel and once they are there there is no way of targeting them. But here is a possibility to sell exclusive products and market services, while also cutting down on paper costs.

DD: We need to, as an industry, be careful about putting what we believe our industry is about, into what a guest is looking for. Its not about taking service away, but creating opportunity to spend more time interacting, just in different ways. Airlines do this successfully and I would be interested to see their rates for upselling.

Its a balance and we need to be careful that technology doesnt distract us from providing that.

There is agreement that the way forward is choice and the future will combine kiosks and tablets and interact with the guest, but only on their lead. So when and how will hotels invest and how will the infrastructure to support this be developed, considering how much guest expectations differ?PR: When it comes to mobility, the key is WiFi. You need to have one of the best systems available. Now we are bringing technology into the room, the investment in that is part of selling the room as a product. Its essential because technology will become a differentiator. AM: Our core business is to attend the guest and enhance and improve their experience. To bring in a 3rd party

to provide these solutions through software and infrastructure and other added value from other areas of the hotel operation, is possible. But we must still understand the 3rd party perception of our industry. Sometimes they dont have that service oriented approach and you find that you miss the compatibility in that regard and dont achieve what you want to provide for the guest. DD: But this comes back to the point that the vendor who will break through first is the one who says to the hotels this is fairly easy to implement. You need your wireless to work but in a case study this is what you will save on staffing, gain on overall satisfaction and this is what you will gain on your upselling.

There is a bigger picture of money and once everybody understands there is a gain in profitability, its an easier sell. AT: We have been talking to clients who are taking this even further in order to continue the hotel-guest communication throughout the stay.

When a guest arrives, if they dont own their own tablet they are offered one, pre-set up, courtesy of the hotel. Thats a tool that can then be used to tag the guest. So its linked into the room controls for AC, you can track what the guest is doing, establish a pattern and see if there is a service or product that can be sold to them.

This isnt just guest satisfaction, it guest optimisation. How do we know if a guest is happy? They dont want to pick up the phone or fill in a survey to tell us how they are feeling, but there are other ways to use technology to communicate. You can make options available. Keep it simple and people although only some people will play with it. You have a huge gap of people who may find the array of facilities intimidating, but give them a computer. There is a lot more you can do if you open the systems up. Think of the tablet as a solution, not just an application for check in. AM: We need also to educate our owners on these new trends and the

eMenu for restaurants/bars

Compatible with:

PO BOX 30479, DUBAI, UAE - T: +9714 3793455 F: +9714 3793465E: [email protected] WWW.EMENU.AE

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We need also to educate our owners on these new trends and the importance of investing in them to add value to the hotel operations

importance of investing in them to add value to the hotel operations.

Its not just about the access points but the capacity of them, for example. Its an ongoing process and the owner has a big role in enabling these. FS: I see IT more as a cost than an opportunity. There are those who want to generate money from it, the market leaders who differentiate their offering with it, and then a second group who have to follow to stay competitive, by which time the technology itself will be competitively priced. AT: The very fact you see IT as a cost means we as the IT industry are doing something wrong. Thats the perception we should be changing. We are at a point in terms of capability where we can come to you and say what do you want us to do to make your guests happier? We have the infrastructure, knowledge and solutions for that. PR: IT is a tangible benefit for my teams because it helps other processes. You dont ask about ROI when rooms are being designed, because you sell that as a single product and IT today is an element of that overall product. But our core product as hoteliers remains the room and the hospitality.

Is that enough in todays market?PR: That is the question, because we are not IT companies, we sell hospitality.

Now IT is such a huge part of guests lifestyles can you afford to think like that?RM: No. We offer free WiFi to guests but if you want to have a bandwidth good enough to do that, while meeting the needs of your operating systems, you have to invest and naturally you want to see ROI.AM: Its not just about the FoH operations, its about combining FoH and BoH data and turning that into extra revenue.

FS: So is this as an investment in IT or marketing? AT: The point is how to add value, which is a key concept of IT, but I think

its a double edge sword. I have seen systems where the guest profile comes up before the room booking. You can potentially provide the person doing the check in with a lot of information and then it is up to how good they are a sales person and thats up to you as a business if you want your receptionist to be sales person or not. Should that upselling have been done earlier in the booking process? Perhaps should there have been marketing contact for upgrades and add ons?

Its your business decision, but IT solutions should provide you with the tools to do that job. How you want to utilise it is your decision to make, and the costs to do this will also require a higher skill of staff at reception than somebody who takes down details and hands over a key. Training is probably the largest cost of delivery for hotels currently.

What would you summarise to be the key points of IT advancements?PR: Simplicity. The sophisticated form of complexity is simplicity and that is true here.

I think this will become increasingly important as Dubai builds a reputation as a technologically innovative city. DD: As an industry we 100% need to understand that there is a balance to be achieved between the traditional

type of hospitality and the services guests expect. The next step I see is us offering a combination of both services and then re-directing that man-power into other areas, rather than using it as an excuse to downsize. AM: To bring it to FoH we must focus on training and technology awareness for the guests and employees and the rest will follow.

The iPad is perfect, but the back end of that isnt so simple. You need to measure the productivity is still there.

Do you find training is also the greatest barrier? AT: For change yes. But this is the second quickest region to adopt mobility, after Asia, and that goes right back to the owners and their way of doing business.

Its training that makes the movement of systems from one application to another slower, which you then have to multiply by thousands of staff over multiple properties. IT has to be simple, easy and flexible. It has to be global, because hospitality is a global business, and it has to add value to what you are doing as a hospitality provider.

Hospitality Business would like to thank Radisson Blu, Media City for hosting this discussion at the Library Lounge.

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COVER STORY


At this years ATM, it was announced that Dubai is to target 20 million visitors by 2020 and reclassify its 600+ hotel and residences, under the newly issued Decree No.17. Majid Al Marri speaks exclusively to Hospitality Business Middle East about the development of the

standards and the vision for Dubai

COVER STORY


May 2013 was an historic month for Dubais Department of Tourism Commerce and Marketing (DTCM). Almost a year to the day since the soft launch, His Highness Sheikh Mohammad bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, issued Decree No. 17 of 2013, legalising the Hotel Classification Scheme for Dubais hotels, while announcing that the Emirate will also strive towards a tourism target of 20 million visitors by 2020.

In the 15 years since its first hotel classifications were introduced, Dubai has evolved into a heady and fast-developing market that today boasts one of the highest concentrations of 5-star properties in the world.

In response, the aim of Decree No. 17 is to enhance transparency and efficiency and allow guests to know exactly how their chosen property ranks in comparison to others within the same category and geographical location.

With a current total stock of more than 600 properties, it will be a welcome move, for the department, industry and guest. Inspiration was taken from around the world, with extensive research and benchmarking undertaken since 2008. But the aim is not to imitate, rather to quantifiably distinguish Dubai as truly world class.

As DTCMs own manifesto states: Our mission is to position Dubai

as the worlds leading tourism destination and commercial hub.

The resulting HCS adopts a multi-layered framework to rate and categorise each hotel, and provides specifications on the requirements for different types and levels of Guest Accommodations. The multi-tiered framework will formalise the quality and standard of guest accommodation and encourage a wider range and choice for visitors, including the much

Hotel

GuestHouseResort

HotelApartment

UniversityCampus

YouthHostel

CATEGORISATION OF PROPERTIES

debated budget level. By adopting a multi-tiered

framework of ratings, categories and designators, clearer choice will be provided to visitors. At the same time, new marketing opportunities are provided to hotels, with the ranges of categories and designators demonstrating the wide offering that has developed in Dubai, from a deluxe hotel apartment in the city to a family and golf resort on the beach, to a business hotel close to the airport, says director, classification and licensing, Majid Al Marri.

The framework includes the traditional one to five star rating system, but will be grouped so each category will cover city, resort and desert locations, (see table right and on page 30).

But its not all about the hardware and location, according to Al Marri, like other rating systems this is predominantly a service-focussed initiative:Our previous system, launched in 1998, had three main

THE HOTEL INSPECTORS

Its one thing to be awarded five stars, but to consistently operate in 5-star style is another. Therefore a major element of the new classifications will monitor quality standards as an ongoing process.

In addition to scheduled inspections a number of mystery guest exercises will also be conducted.

These after hours checks are incredibly thorough and will cover room service; spa facilities; pre-arrival, arrival and departure experience; bell service; guest lunch,

dinner and breakfast; wakeup call services, and others.When conducting these and pre-planned checks, the inspectors will be armed with PDAs, in order to create instant reports for hoteliers to view online.

The inspectors conducting these checks have been trained by DTCM and its third party industry and education partners, in-house and externally. There is ongoing advanced training through the Quality Check System employed in coordination with the Tourism Board of Switzerland.

We have joined hands to make this happen and we have partnered with the major brands to bring something that fits Dubai and raises its already high standard

COVER STORY


Majid Al Marri, centre, with L-R: Buthaina Mohammed, executive hotel classification; Moza Al Jamri, executive hotel classification; Alia Bin Hendi, head of media relations.

classifications, now we are talking about five categories, with different and new grading within each. For example resorts will only be classed 3-, 4- or 5-stars. You will not have a resort with 1-star.

In the hotel apartments we are offering a new category between standard and deluxe, so there are now three categories in the hotel apartment sector. But we have focussed mainly on services

Looking ahead, the system will also develop to include staff welfare and cultural diversity, as well we sustainability elements.

Ensuring the industry does not stagnate once the stars are awarded, classification certificates will be renewed annually.

TRANSITION PERIODPledging that the framework will not be an instant assessment, hoteliers are now bound to a 12 month introductory period in order to comply with changes to maintain their existing star rating, or to strive for a higher rating.

Al Marri maintains that the period for compliance will not cause issues as site visits have been conducted regularly and the industry closely involved in all elements of the frameworks developments.

On some levels the changes are easily realised, on others they

will require much more work, both now and in future, particularly in terms of sustainability and BoH objectives.

Further, requirements will place onus on DTCM to increase collaboration with other government entities, to facilitate this.

Eco-tourism has a lot of criteria that is covered in our Green Award, but as a minimum we will be asking hotels to provide us with an environmental strategy for waste, water and energy.

Other environmental and social elements in the framework will include in future, provisions regarding staff accommodation and catering facilities, in addition to the possibility of guidelines for offices.

Previously we didnt have this so we will start with something general, even the cafeteria for staff and offices will have guidelines in future. It is something that we will work out with Dubai Municipality and it could even

If we are to double the number of tourists, we will have to double the room inventory, too

100+THE NUMBER OF DIFFER-ENT HOTEL CLASSIFICA-

TION SYSTEMS IN USE GLOBALLY

COVER STORY


9.8MTHE AMOUNT BY WHICH VISITOR NUMBERS WILL

HAVE TO INCREASE TO MEET 2020 TARGETS

CATEGORY DEFINITION GRADINGS

Hotel A hotel is a Guest Accommodation that provides paidlodging, meals, and other services for travellers and touristson a short-term basis.

Budget1 Star2 Star3 Star4 Star5 Star

GuestHouse

A Guest House is either a converted house, etc adaptedto accommodate overnight guests; or it may be a purposebuilt facility. A Guest House is run as a commercialoperation, with a minimum of 5 rooms, and is often owner-managed.It has public areas, which are for the exclusiveuse of the guest. The owner/ manager lives either off-site,or in a separate area within the Guest Accommodation.

StandardDeluxe

HotelApartment

A Hotel Apartment shall signify a Guest Accommodationoffering guests a complete self-contained sole occupancyunit consisting of studios and units with one or morebedrooms, a living room, and a kitchen with cookingfacilities and dining area.

Standard SuperiorDeluxe

Resort A Resort is a full service, amenity rich GuestAccommodation expanding over numerous acres, whichprovides a destination experience to its guests. Resortsdiffer from hotels, due to the range of additional facilitiesand services provided, including F&B, sports, leisure,entertainment, and shopping.

3 Star4 Star5 Star

UniversityCampus

A University Campus Guest Accommodation can be definedas Student dormitories or bedrooms rented (sometimeswith meals) to tourists or the general public by a college oruniversity, as follows:t%VSJOH5FSN5JNFfamily & friends of registered studentst0VUXJUI5FSN5JNFBMM

One Level no split Gradings

YouthHostel

A Youth Hostel is a budget oriented, sociable GuestAccommodation providing the options of Single, Double, andFamily Rooms (Group Rooms, i.e. Dormitory Style, can alsobe offered however as Gender Specific).

One Level no split Gradings

DEFINITIONS & GRADINGSgo as far back as the construction of properties and accommodation.

We take everything into consideration, Al Marri adds, hinting at the level of cohesion that is looking to be achieved through the new system.

To date, plans for collaborative working will draw in the services of Dubai Municipality, DEWA, RTA, Dubai Police, Civil Defence, and hygiene and building standardisation committees.

We have joined hands to make this happen and we have partnered with the major brands in Europe, America and Asia, as well as locally, to bring something that fits Dubai and raises its already high standard.

And while many embark on extensive refurbishment projects to ensure they can continue to meet DTCM standards, Al Marri assures that the point is not to see hotels losing stars.

We will work closely with each establishment to make sure they reach the new criteria because we have already worked with them and spok

hospitality business middle east, june 2013

Documents

star hotel

jeemfbtutipt hotel index

dtcm news

appointment news

editors comment

gm of dubais

hygiene summitbehind

star experience