The Middle East hotel sector has been considerably hit by the international financial turmoil, as it is more vulnerable and is dependent on elements outside the region.
Although few hotel chains are yet to experience direct impact, others have emergency plans in place.
The Chief Executive and Managing Director of Hospitality Management Holdings (HMH), Michel Noblet, speaking to Gulf News, said that the credit crunch is taking its toll on the hotel sector, and added that their company has several contingency plans under the microscope.
Even the Executive Assistant Manager, Le Meredian, Dubai, Shujaat Yar, agreed that in case of change in business conditions, the company may have to adjust their business strategies accordingly.
Even though the hotels supposed to be introduced into the markets have not been put on hold, several alterations are taking place in the market. With the financial turbulence in mind, and keep a close watch on the market, several hotels are going on a defensive moder, and changing their order of priority for several projects.
However, the financial turmoil has not affected the hotel occupancy rates as yet and occupancies are hoped to remain strong till the end of the year.
However, the industry officials are hoping that the hotel business could pick up, and in fact, in the Gulf region, more multinational players move their investments and focus operations here. There is a genuine feeling of prosperity in future, considering the constant investment levels and huge projects being launched.
The impact could be minimized by withering international travel and hotels, but, by being careful about the target markets. The market may take some time to stabilize and till then the hotel sector needs to be cautious about its resources.
Posted on 3/11/2008 Social Bookmarking
     
|
Hotels
Restaurants
Property
Jobs
Sports
Entertainment
Business
Directory