The Global Turmoil Has Not Yet Shaken the Hotel Industry

Croatian hotels need to improve and enhance their offerings in order to compete on a global level, and particularly, marketing Croatia as a destination within Europe is essential.

Interviewed by: Vanja Figenwald
[email protected]

Dr. Ghassan Aidi, a veteran of the hospitality industry with 30 years of experience, has been at the helm of the International Hotel and Restaurant Association since 2006, a position he will hold until 2009. Since 1995, he has served as the Vice President of the Arab Union of Hotels. Under his leadership, Cham Palaces and Hotels, an international hotel management association with branches in Lebanon, Syria, the USA, and Jordan, was the first hotel company to sign the Agreement on the Implementation of the Code of Conduct for the Protection of Children from Exploitation in the Travel and Tourism Industry back in 2003. In addition to various roles he holds in different organizations, such as membership in the Advisory Board of the International Organization for Migration and presiding over Chaine des Rotisseurs in Syria, he has been a member of the United Nations World Tourism Organization (UNWTO) Board for Affiliate Members since 2006. He is a prominent speaker at many industry-relevant conferences, from Damascus, Cairo, London to Beijing and Cartagena in Colombia, discussing a wide range of topics related to sustainability, terrorism, natural disasters, child protection, and migration in the industry. He earned his master’s degree in management and business from the legendary Paris Sorbonne, later adding a doctorate in management information systems in the USA. Aidi briefly reflected on the latest trends and movements in the global hospitality industry and commented on Croatian tourism experiences in this context.

• Can you briefly describe your organization IH&RA, what you do, and your role as its president?

– IH&RA was founded by hoteliers in 1946 in Paris to promote the interests of the private sector on a global scale. Its work is based on protecting the interests of over 200,000 hotels and eight million restaurants worldwide. It has been recognized by the United Nations as a representative of the hospitality industry. Our members include independent hotels, hotel chains, and international hotel associations. Our headquarters moved to Geneva this year. We engage in lobbying and defend the interests of the private hospitality sector worldwide, while also providing consulting services to our members. Currently, we are setting standards for sustainable development and climate change for hotels. As the president of the association, I manage IH&RA, attend all major industry-related meetings around the world, and give lectures and speeches on various topics in areas of interest to us.

• What trends would you identify as the latest in the hotel industry?

– Primarily, defining criteria for sustainable development, a return to luxury hospitality, and within hotel offerings, highlighting the internet and communications as likely relevant trends.

• Is the current financial crisis affecting your industry, and how do the hospitality and hotel industries feel the consequences?

–  The hospitality industry is doing well. Moreover, the number of overnight stays and revenues in hospitality are increasing, so it can be stated that our industry has not been affected by the current global economic movements. Hospitality remains very active and profitable, but this applies only to those who have a defined product, maintain quality levels, are clearly market-positioned, offer top-notch service, and have generally quality management.

• How familiar are you with the Croatian hotel and tourism offerings, and can you comment on them? Specifically, how do Croatian hotels compare to those abroad, what are their weaknesses or strengths, and what should be done?

– Croatian hotels lack effective service, which is certainly one of the key points. You have the people, but they need to be more thoroughly trained and better at foreign languages. When it comes to hotels, they should improve and enhance their offerings to compete on a global level, and particularly, marketing Croatia as a destination within the Balkan Peninsula and all of Europe is necessary.

• How would you describe your cooperation with the Croatian hotel industry? Is it sufficiently involved in global trends and does it adequately follow movements in the global hotel scene?

– The Croatian Hotel Association has been a member of our association for a year, and its representatives regularly attend our meetings, but I must admit that I do not know what the interaction is like at the lower, local level, particularly in technical matters.

• What, in your experience, are the characteristics of a top hotel compared to an average one? What is crucial in creating the best hotel service?

– Today’s hotel guests demand luxury, efficiency, a high level of service, high technology, especially in terms of communication and the internet, ecological awareness, and access to health facilities such as fitness, gyms, or wellness.

• What do you think are the upcoming trends, or what will happen in the hotel industry in the near future?

– Our industry will continue to grow and improve the overall quality of service, but this time taking into account the criteria for sustainable development to prevent the negative consequences of climate change, as well as addressing pollution and other issues arising from ecological problems.

• Do you think that smaller, private, very luxury hotels, which are becoming increasingly popular, will threaten the strength of large hotel brands? We are talking about small elite hotels and resorts.

– No, there is a niche for every individual market, and judging by experiences, hotel guests do not yet prefer a specific type of hotel service, so mega-resorts, resorts, and hotels remain popular, but the smaller, high-luxury hotels you mention also have their place in the market.

• What do you predict about growth opportunities in the hotel and hospitality industry in the next period?

– I estimate growth of approximately seven percent.

• Do you think there is a problem with quality staff in the industry in general, which, as you mentioned, is particularly pronounced in Croatian hospitality?

– Yes, the issue of workers is global in scope when it comes to hospitality. It is a disparity between skilled and unskilled labor. In your case, as well as generally in the Balkans, this problem is particularly pronounced due to the lack of effective training institutions, but services and training are generally lacking.

• Which hotel brands do you think are the strongest, or who follows the latest trends in the industry and reacts to them in a timely manner?

– I cannot answer that question definitively because all hotel brands are good as long as they meet certain success criteria, such as practicing established procedures and practices, or effective control of all functions in hotel operations.