Robust government spending drives tourism growth in Kuwait
Rotana Hotels 2017 GCC Roadshow: Centro Hotel to open in 2020
Continued government spending on infrastructure has driven Kuwait to steady growth and a good start in 2017, Guy Hutchinson, Rotana’s Chief Operating Officer, told reporters on the sidelines of the Rotana Hotels 2017 GCC Roadshow. Rotana, one of the leading hotel management companies in the Middle East, Africa, South Asia and Eastern Europe, said it expects the trend of intraregional travel to pick up further pace this year, bringing positive momentum to the hospitality industry in Kuwait and the wider region.
“The tourism sector in Kuwait will benefit from continued government spending on infrastructure,” he said. However, hospitality sector growth across the region will remain moderate through much of 2017 due to persisting economic and geopolitical challenges, with occupancy rates likely to hover around 2016 numbers, Hutchinson added. Rotana - currently in the midst of an aggressive regional expansion - is set to add a second property in Kuwait by 2020 with the opening of Centro, opposite Jumeirah Hotel. This will be the first Rotana hotel to open in the country under the ‘Centro by Rotana’ brand - the company’s lifestyle affordable hotel brand. Once complete, the new hotel will add 209 rooms to the company’s existing inventory of 198 rooms in Kuwait, bringing the total tally to over 400 keys.
“Kuwait has always been a strong business tourism destination, and with billions of dollars now being poured into mega infrastructure projects such as the Clean Fuels Project and the new refinery project in Al-Zour, the country’s business travel potential is at an all-time high,” Hutchinson said. “Kuwait is also witnessing a spurt in tourist arrivals from within the GCC - particularly Saudi Arabia and Qatar - thanks to the government’s focus on developing the country’s leisure and entertainment sector. Rotana is looking to tap into the opportunities thrown up by these trends by opening our first Centro hotel in Kuwait, which will cater to the demands of the new generation of travelers who seek both finesse and functionality at reasonable rates.”
In 2016, Rotana opened hotels in Riyadh, Jeddah, Doha, Bahrain, Amman and one in the People’s Democratic Republic of Congo in Kinshasa. “Lots more are coming in Africa - we have Tanzania and Angola. This year we are looking at about 10-12 openings - we have four hotels coming up in Saudi Arabia, we will open two in Dubai, we will open two in Abu Dhabi, one more in Doha, we are going to open in Irbil in Iraq and we will open two more in Istanbul. So we have a busy year ahead of us,” he pointed out. “While the hospitality sector in Kuwait has indeed come a long way, there remains an urgent need for more budget and mid-market hotels in the country. Bringing a greater level of choice and affordability to the market can have a decisive influence on the country’s ability to attract a broad range of visitors and, by extension, achieve its tourism goals. Rotana is looking to fill this gap in the market by introducing to Kuwait our Centro brand, which has redefined the rules of the mid-market game by combining world-class service and comfort in an affordable package,” Hutchinson said.
Besides being one of the region’s fastest-growing inbound tourism markets, Kuwait is also a key driver of travel demand for Rotana hotels across the region. In 2016, the company registered a 9 percent percent increase yearon-year in Kuwaiti room nights.
Commenting on the trends that will drive tourism and hospitality growth in Kuwait and the region in 2017, Hutchinson said: “Intra-regional travelers from the GCC remain the dominant source market for Rotana and the industry as a whole, and this trend will likely gather more momentum in the coming months. Technology advances will continue to transform the way the hospitality industry functions, with the use of mobile apps becoming more ubiquitous, and dynamic pricing strategies will keep gaining in popularity. Although we expect some of the economic and geopolitical challenges of last year to spill over into 2017, overall, we feel the increase in supply will make the market more competitive in 2017, leading hospitality players to focus on innovation and resource optimization while creating enhanced value for guests.”
On the other hand, he admitted that 2016 was a tough year globally given the challenges in peace and security and the wars and rumors of war in some areas of the world. “We admit a decline in 2016, but this is global phenomenon. But we are very optimistic in 2017. When we see infrastructure spending in Kuwait, you’ll see hope - it’s very substantial and Kuwait is committed to stimulating the economy and helping the country. It gives us lots of confidence as investors. So we are working hard to help from our part. The GCC as a whole is a fundamental dynamic - the growth in the Middle East is driven by GCC, so that is why we are here. GCC is a very important market for us,” he said.
As part of the government’s efforts to boost tourism figures, Kuwait International Airport is undertaking a $4.31 billion expansion that will see a new passenger terminal built within the next five years. The expansion project is set to boost the airport’s capacity to 25 million passengers per year. Rotana currently manages a portfolio of over 100 properties throughout the Middle East, Africa, South Asia and Eastern Europe with an aggressive expansion plan in place. Rotana has chosen to acknowledge how precious time is by making all time spent in their range of hotels ‘Treasured Time’. This means Rotana has pledged to understand and meet the individual needs of all guests. In so doing, Rotana has evolved its product brands to include, Rotana Hotels & Resorts, Centro Hotels by Rotana, Rayhaan Hotels & Resorts by Rotana, Arjaan Hotel Apartments by Rotana and The Residences by Rotana.
Hutchinson joined Rotana as Chief Operating Officer in Jan 2014, bringing with him extensive experience in the luxury hospitality industry from markets as diverse as Japan, Australia, China and India in addition to a previous stint in the Middle East.
Hutchinson moved to Abu Dhabi from New Delhi, where he served as Vice President Operations - India for Hilton Worldwide. Prior to his post in India, Hutchinson served as Regional General Manager China North, responsible for all brands in the group’s portfolio for China North and Mongolia. In 2012, he was responsible for a total of 11 trading hotels and 23 hotels in pre-opening phases. He moved to the role from earlier positions as the General Manager of Hilton Shanghai, GM at Cairns in Australia and Director of Operations at Tokyo Bay.
Hutchinson is no stranger to the Middle East - he was the man responsible for managing the pre-opening and trading of Hilton Dubai Creek - including negotiating, securing and launching of the unique partnership with Gordon Ramsay and the Verre Restaurant. Hutchinson joined Rotana’s feted executive team with prestigious recognitions of his own such as being named China’s Most Innovative Leader (2011) and serving as the Chairman of the Australian Hotels Association (North Queensland).
The international hotelier’s career is notable for its creative leadership and his success in change management, repositioning and building high performing teams. As Chief Operating Officer at Rotana, Hutchinson is leading the brand’s operations throughout the Middle East, Africa, South Asia and Eastern Europe, and is the key figure driving the company’s quality standards and financial performance.