Sustainable tourism is one essential vertical underneath the United Nations Sustainable Improvement Purpose (SDG) 8, for attaining respectable work and financial progress. Whereas the clock is ticking hazardously for all SDGs throughout all international locations, the obstacles are each regional-context particular and structurally excessive in Lebanon when the nation goals at attaining the ninth sub-target of SDG 8, which is to “devise and implement insurance policies to advertise sustainable tourism that creates jobs and promotes native tradition and merchandise.” To debate the sustainable tourism prospects of Lebanon, Government sat down with Haitham Mattar, the managing director of resort operator IHG Group (domestically carrying the celebrity of the Intercontinental Phoenicia resort) within the India, Center East and Africa (IMEA) area. Mattar is a Lebanese hospitality sector govt who visited Beirut on the event of a brand new resort model’s arrival within the coronary heart of the Beirut resort district.
How are you going to reposition the property that you’ve opened final November, nonetheless in the course of the newest conflict on Lebanon, and the way troublesome do you think about the Lebanese tourism market to be?
Like all market world wide, when you’ve stability and safety [you have good operating conditions], and may add to that the pure property of a vacation spot. As you realize, Lebanon is a vacation spot that may be very wealthy in historical past, tradition, and gastronomy, with lovely pure property. Additionally, tourism just isn’t one thing new to Lebanon.
Certainly, while you look right here throughout the road you see the resort Phoenicia which has been in relationship with Intercontinental beginning over 60 years in the past, appropriate?
We signed the connection with the Phoenicia in 1961 and now we’ve added this Voco and really delighted to enter partnership with its proprietor Hani Sheet. He had a imaginative and prescient for this resort [formerly Monroe hotel] which had a legacy and traded very properly when it was open for a few years however he needed to take it a degree up with a world model.
Voco is a newish model that’s solely seven years previous but it surely has accelerated in progress. Now we have the most important Voco on the planet in Saudi Arabia with 4500 keys in Makkah, and we lately opened a Voco in Jeddah with 750 keys. It’s an up and coming model that’s favored not solely by friends but in addition by buyers, as a result of it provides nice returns on funding.
The brief model identify with its appellative Latin phrase origin might enter the reminiscence rapidly. However how is the model positioned within the order of IHG Group manufacturers, vis a vis the Intercontinental and the Crown Plaza manufacturers for instance?
It’s above Crown Plaza and just under the Intercontinental. It’s a five-star model however it’s also younger and on the border of a way of life resort. It’s not a full life-style model however very shut. It’s casual. When put next with the Crown Plaza which focuses extra on occasions and a few teams, right here [at the Voco] you’ve extra particular person vacationers and households. You additionally might need small conferences and small teams, in contrast to the Crown Plaza. It’s just under the Intercontinental which is our luxurious model.
I perceive that the IHG Group has some 375,000 folks in its workforce globally, and a few 6,600 resort properties underneath operation. What number of motels are based mostly within the area that you simply oversee?
That’s appropriate. 220 [hotels] and 33,000 workers are in my area, and we’ve 4 workplaces, in Dubai, Delhi, Riyadh, and an workplace in Johannesburg taking care of Africa.
This implies your area covers all of Africa, plus the Jap Mediterranean, plus the Arabian peninsula, plus the Indian subcontinent?
India, Seychelles, Nepal, Sri Lanka, Bangladesh, and Pakistan are all in my area, and all the Center East and Africa. These are 42 international locations.
If I rank these 42 international locations by enterprise quantity and by problem when it comes to managing the market, the place would Lebanon emerge?
Allow us to speak concerning the ease of doing enterprise. Lebanon is likely one of the international locations the place the convenience of doing enterprise is considerably difficult. If you happen to don’t have the proper connections, it’s troublesome so that you can get a license, particularly in case you are bringing folks to work right here from outdoors the nation. However we’ve seen that lately the enterprise surroundings has been enhancing very a lot. And yesterday I met his excellency, President Joseph Aoun of Lebanon. He’s clear on his imaginative and prescient when it comes to security and safety of the folks of the nation but in addition targeted on driving the economic system. He’s additionally specializing in hospitality and tourism as being drivers of the economic system. We speak concerning the ease of doing enterprise and it’s also a key precedence for his new staff and him to enhance the processes of doing enterprise and getting licenses and permits right here in Lebanon. He was very optimistic, and we left the assembly feeling very optimistic concerning the dialogue with him and in addition concerning the coming summer season which he stated can be nice for tourism in Lebanon. We have been very snug.
Over the previous three a long time, Lebanon was a market with two robust seasons, the summer season and the year-end vacation seasons. Different occasions have been a lot weaker and down seasons have been troublesome to handle. These circumstances have been arduous for a lot of operators, on high of which there have been excessive occasions in 2021, after one yr when the hospitality sector was apparently the toughest hit by the Covid19 pandemic and lockdowns in addition to the impacts of the Beirut Blast. The stabilization of this market was difficult even earlier than the weakening of tourism by 32 p.c now in 2024. That leads me to ask you ways troublesome this market is for strategic planning and growth?
It’s not troublesome for strategic planning. In Lebanon you’ve lengthy stretches of seashores and exquisite mountains, ski resorts, agri-tourism, tradition and heritage, so there are nice foundations. I don’t see any problem per se, nonetheless, I’ll let you know what’s required to keep away from these dips in seasonality that you simply rightly talked about. What you want [in tourism] is a 365-day enterprise. You can’t run in every single place at 80 p.c occupancy all the time but when town can run at 70 to 75 p.c occupancy, that is very wholesome. Now we have two busy quarters of the yr. The remainder of the yr will want the efforts of the tourism ministry to thrive by activations and thru occasions. This requires full collaboration between all ministers to just remember to have the proper infrastructure, not simply roads and parking, in order that members have a nice expertise when you’ve a convention of an affordable measurement. Give it some thought: all of Lebanon has 6,000 resort rooms, of which 2,000 plus are in Beirut.
What’s the market share of IHG Group manufacturers out of this whole Lebanese hospitality market with an estimated direct tourism contribution to GDP within the 7 p.c vary between 2015 and 2020, in response to UNWTO information?
We’re the most important resort operator in Lebanon. Now we have in all probability greater than 50 p.c of worldwide model resort rooms. If you happen to take the 6,000 rooms in Lebanon, [IHG Group brands] have at the very least 1,500 rooms.
And IHG Group has already a few years in the past divested from resort possession into the operator-only mannequin, so all of those resort rooms are operated underneath the portfolio of manufacturers, together with now Voco, however you don’t have any possession stakes in these motels, is that proper?
We don’t have any possession wherever on the planet.
You talked about your collaboration with buyers. How lengthy is the common contract length underneath which you use a property? And regionally, what number of Voco motels are as we speak up and operating and what number of are within the pipeline?
The minimal is ten years and the common is about 15 years. That’s the similar additionally for the Voco model. Below this model, we’ve now 11 Voco motels working within the IMEA area and 15 within the growth pipeline.
In Voco, you’ve a model underneath enlargement. What’s your major promoting level to buyers?
The model began out as a conversion model. When a resort that operates a sure model is leaving, we come to the proprietor [of this real estate] with a really environment friendly conversion plan that enables the proprietor to save lots of prices on their conversion and [align their property with the international brand]. We provide options with Voco to permit the proprietor to speculate into the areas that are most guest-facing. We concentrate on the impacts on visitor expertise as a precedence. We de-prioritize different areas and we plan [developing these areas] for a future time. So, for instance we do a 3 to 5 yr plan with the proprietor to transform to a brand new model. Plus, [it is an attractive investment] as a result of this model is an off-the-cuff model that targets younger enterprise vacationers and younger households.
Whereas there have been a couple of years prior to now twenty years which noticed tourism blossom to the purpose of Beirut being added as vacation spot of cruise liners, there have been fast downsides to the customer increase, reminiscent of meals value inflation within the downtown hospitality sector and aggressive hawkers of vacationer lure eating places lining Maarad Avenue in downtown. You might be an professional on sustainable tourism. What would you advocate for ministries of Lebanon, such because the Ministry of Tourism or the Ministry of Financial system and every other ministry with a stake in hospitality and economic system, for growing the tourism sector sustainably past the seven or eight p.c contribution of tourism to GDP that have been reported within the latter a part of the 2010s? The place would you see the nation moving into sustainable tourism?
Lebanon is a rustic that has been disadvantaged of power for a really very long time. I believe we’ve seen a decline in power provide because the time of the primary civil conflict. Renewable power will play a key position in Lebanon’s future. No investor desires to place cash and proceed to pay for diesel and generator. The emissions and the influence on the surroundings that these mills have, makes it a 3rd world nation. Renewable power is essential for the nation to concentrate on.
Additionally, while you have a look at sustainable tourism growth, it’s something that engages the group. While you see international locations like Spain and Greece complain about over-tourism, one of many major causes is that the residents of the nation don’t really feel the profit from tourism. They really feel that the vacationers come and go however solely occupy our buses, our streets, our eating places, giving us site visitors and inflation however don’t give us advantages. If the communities are engaged and really feel that they’re being consulted and provided alternatives to contribute to the vacationers, whether or not promoting them items or experiences, the communities and tourism will develop collectively.
Additionally, an enormous development as we speak is that persons are in search of agri-tourism. Lebanon is a rustic that has a wealth of farms and orchards, whether or not it’s oranges or peaches or apples, and folks like to have that have as we speak. Lebanon should concentrate on these sorts of experiences that persons are craving for as we speak. They take lengthy journeys and journey overseas so as to have the ability to stroll by an orange discipline or a winery. Now we have vineyards and vineries which have been lengthy established, so I might say the muse for tourism is there. The most important want for resolution is one, for stability, and two, is for all ministers to come back collectively as one and concentrate on driving tourism. Then that seven p.c [of GDP from tourism] can simply change into ten and twelve.
How will you drive tourism when the Ministry of Tourism has a funds that may cowl solely the salaries of its public servants and hold the lights on on the ministry and relies on the great will of the promoting business in relation to producing even a promotional video stuffed with long-held cliché photos? Would you as the most important branded resort room operator within the nation be keen to speculate right into a promotion marketing campaign for Lebanon as tourism vacation spot?
All our motels, right here or world wide, pay what we name a advertising and marketing contribution. This advertising and marketing contribution permits us to market a resort on our channels to our loyal members. Now we have 140 million loyal members. That is a part of what we do to advertise our motels globally. After all, when the conflict is there and there’s no stability, there’s nothing actually to advertise in Lebanon. We maintain again on this. However we’re able to reactivate this [marketing effort] as quickly as we really feel what we felt as we speak in assembly with the President [Joseph Aoun] who’s giving us this confidence. We activate these promotions for our Lebanon motels once more by our motels globally and thru our loyal member and our rewards packages, our web site and our functions. We reactivate our Lebanon occasions.
However that is just one half. You want the vacation spot administration and advertising and marketing. That is actually essential, and except the 2 are working collectively, [it will not function]. I can not promote the vacation spot; I can promote the motels [of IHG Group] and the neighborhood however I need assistance from anyone to advertise the vacation spot. So, if the [Ministry of] Tourism has not sufficient funds, the Center East Airways has to come back on board. I’m positive that they need extra capability on their flights. So if you wish to fill your airlift, you will need to promote the nation, you will need to promote by the locations and the routes. All collectively, the eco system can work collectively. You can’t promote tourism alone or the nation. All of us have to come back collectively, hospitality, airways, that are the lifeline of tourism. MEA has an ideal fame and good planes, and respectable service.
Up to now few years, motels and hospitality operators in Lebanon confronted many surprising monetary troubles even within the face of insured enterprise interruption occasions. Did you face difficulties of managing the price of the Lebanon operation throughout current years?
Like every other resort firm, we’ve gone by ups and downs. The hospitality business has gone by very difficult occasions, not solely in Lebanon however the world over. If you happen to recall the 2008 monetary crises, it impacted the entire world and locations like Dubai had a serious share of influence and losses. However I at all times say that hospitality is simply too huge to fail and really resilient. Individuals by nature like to journey and by nature at all times wish to reconnect. If you happen to bear in mind the way it was stated in the course of the Covid [19 pandemic] that [travel] won’t ever occur and all of us shall be on screens; group journey won’t ever occur once more, enterprise journey is gone. However you see instantly after that we’re creatures of behavior and everyone goes again to their regular life. That is what makes us resilient.
When measured towards the SDG 8, attaining sustainable tourism, the sector is globally confronted with local weather risks in addition to challenges associated to migration, commerce conflicts, political obstacles, etcetera. Many of those obstacles aren’t discovered within the Center East area, nonetheless. Is the largest problem for tourism on this area the fame of nations normally phrases?
I might say the largest problem is stability, throughout, not simply in Lebanon. Look, Syria is the cornerstone of the area. If something occurs positively in Syria, it is going to explode outwards, positively. Whether it is unfavorable and it implodes internally, that also has a unfavorable influence on the complete area. So how Syria will pan out and are available to be an actual democratic system, will influence the complete area.
This was truly my subsequent query. To transcend Lebanon, do you continue to function the Intercontinental in Damascus?
Not for a few years.
However you signed in 2024 for the Vacation Inn in Damascus?
We signed for the Vacation Inn close to the central Souq Al Hamidiyeh however the website hasn’t opened but due to the dearth of stability. However I envision that in a democratic Syria, the place security and stability return to the nation, [Syrian hospitality will shine as] one other nation that may be very wealthy in tradition, pure property, and seashores, and that as we speak lacks resort properties. Even in Damascus you don’t have the [room capacity] and out of doors, like within the seashore cities reminiscent of Latakia and historic cities reminiscent of Aleppo, there are not any motels.
Up to now few a long time, growth of cross-border tourism in Lebanon was severely hampered by the truth that it was both very troublesome or at occasions not possible to go to close by international locations and so folks visiting Lebanon for leisure and cultural journey, have been caught right here. Now, with Syria opening up from views of each building and enterprise but in addition tourism and hospitality, would you see Lebanon as a base for folks from worldwide firms to remain at IHG properties in Beirut and commute to Damascus? Is your Syria growth technique associated to the native market in Lebanon? What are you planning for the opening of Syria?
We don’t have any plans for Syria but. The plans will begin when you’ve closure on the place Syria goes when it comes to governance and after we know for positive that there shall be stability in Syria. That’s what we want for, hope for, and pray for. After that, we are going to search alternatives in constructing motels, as quickly as these international locations are categorised as protected international locations and protected enterprise areas.
Some easing of EU sanctions on Syria have been lately introduced, particularly in areas of transport and power, so this needs to be good for you, and I might assume that you’ve already some connections with buyers.
As quickly because the sanctions are [lifted], we are going to in all probability be among the many first to enter Syria. Now we have connections with buyers and the manufacturers that buyers search. I believe everyone is ready for issues to occur. What I think about is folks coming to Lebanon and having fun with Lebanon’s choices however then to have the ability to lease a automotive and drive by to Syria and have the identical expertise and keep in our motels as by cross-selling between motels in Lebanon, Syria, and Jordan. That might be fantastic. Stability is the important thing element for tourism. Tourism is a pressure of excellent.
So if we glance to an optimistic state of affairs for Syria, what number of Voco motels would I be capable to keep at within the Syrian countryside?
I don’t know, hopefully many. However the fantastic thing about having our manufacturers is that when we all know that the alternatives are open for us in Syria, we are going to begin a market technique that enables us to review the complete nation and see which of our manufacturers match the place. Then we are going to search buyers’ curiosity the place we wish to go, whether or not it’s a metropolis resort, funds resort, or luxurious model, or a resort. On this we work with stakeholders on the bottom but in addition with different buyers, which may for instance be buyers from the [Arabian] Gulf who’re to construct motels in Syria.
What’s the position of the convention and occasion enterprise. How are F&B, the meals and drinks and occasions enterprise shaping up in comparison with room leases? Is the combo wholesome?
It’s extra geared in direction of rooms, se we’ve extra [accommodation] enterprise than F&B as a result of we nonetheless want the marriage enterprise to come back again and we additionally nonetheless want the catering, the massive conferences and occasions. If you happen to say F&B, it’s all of meals and beverage and particularly banquets. This has not revived a lot but however this resort [Voco] has accomplished to date two conferences and so I can see that the small to medium occasion enterprise is coming again. The massive occasions enterprise continues to be not again.
How can Beirut motels once more appeal to giant conferences, maybe near-future conferences targeted on reconstruction within the Jap Mediterranean international locations, and essential occasions on constructing a sustainable Syria or potent civil society? How will you assist in pulling them into Lebanon as an alternative of seeing occasions on Lebanon and Syria happen in Cyprus, Dubai, or a European metropolis?
This additionally must be a collaboration between us and the federal government and the conference middle. You want the expo middle to have the ability to bid for a few of these conferences, noting that the bidding course of for a few of these giant conferences is such that they’re booked already 5 or ten years upfront. They already go to locations, so the earlier Lebanon begins to bid for these convention, the earlier we will safe a few of them. Right here I’m speaking about occasions which can be city-wide, that fill our motels in addition to anyone else within the metropolis. I see nice alternatives and wholesome competitors for tourism on this metropolis.
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