Mövenpick Hotels & Resorts is represented through over 90 hotels existing or under construction in 26 countries. TOUFIC TAMIM, vice president sales and marketing, Middle East, spoke to TTN.
How has 2008 fared and what can we look forward to in 2009?
In the current economic climate, hotels across the region are having to re-budget and re-forecast for 2009, which is looking a little bleak at this juncture. I think we will see a sluggish leisure segment early next year with fewer travellers to this region, particularly to the UAE, Egypt and Jordan, and we will see shorter vacations particularly from the European markets.
The normally robust corporate market which will continue to provide substantial business for our hotels, will see a decrease in room nights particularly where mega projects are involved. In addition the meetings and incentive market will see a downturn with organisations cutting back in this area choosing to stay closer to home.
Intra-regional travel will continue to grow because of the shorter duration of trips and low cost associated with this segment.
What impact has the global economic downturn had?
So far we haven’t really felt the impact of the economic downturn here yet across the GCC, although Dubai has seen a decrease in business to the city during November and December. 2009 will be a different story with fewer arrivals, particularly from the European source markets.
Have occupancy levels in your Middle East properties been affected?
All in all we had a very good year (2008) with an increase of 10 per cent in occupied rooms across the Middle East and an occupancy that increased by 2 per cent. Beirut had one of their best periods in 10 years and Jordan saw an incredible increase in the number of visitors. But the negative economic climate which has spread through much of the western world is beginning to make its presence felt here and we will have to monitor closely its effect.
What challenges do the Middle Eastern markets pose?
In previous years we have all said the same, that recruitment and retention is our main concern. However, 2009 will see an about face and we don’t expect to face such challenge because we believe the ailing real estate segment will supply us with the manpower needed.
What plans do you have to improve occupancies in 2009?
We will make efforts to improve our RevPAR and we will be negotiating leaner contracts for incentive travel – a crucial step in light of the current US dollar against the Euro situation.
What are the new projects planned for the region?
Openings this year are the Mövenpick Hotel & Residence Hajar Tower Makkah, and the Jumeirah Beach and Yanbu (Saudi Arabia), properties. In 2010, openings include the Mövenpick Villas Al Waha, KSA, and the Dubai properties of Oceana Resort & Spa, Ibn Battuta Gate Hotel & Spa, Royal Amwaj Resort & Spa, Mövenpick Hotel Deira, Mövenpick Residence Hamriya and the Mövenpick Hotel & Residence Laguna Tower.
Are you looking at new source markets?
We will continue to build on the existing source markets of Europe, the Middle East and Asian markets. An emerging market for us is Russia and we are starting to explore and target our marketing efforts to this region.
What is the single most important challenge you are looking to overcome in 2009?
The challenge for most is to keep guests loyal to a particular brand. Loyalty programmes, which is one way of doing it, have long since been a mainstay of the service industry with banks, airlines, supermarket chains and even your local retail outlets all offering some kind of programme to recognise and reward repeat purchases. However there is a constant need to re-evaluate guests’ needs and expectations and provide a good product with outstanding service. This is what will keep us all busy for some time to come.