PwC urges tourism operators to ‘adapt now’

Anew report from consultancy PwC has warned Middle Eastern hospitality and tourism operators that they must “recognise the need to address change at a scale and with an urgency that is unprecedented.”

As the industry continues to shift and develop, PwC says that it recommends focusing on the near-term manifestations of the issues and challenges confronting the industry, using a framework known as ADAPT.

Speaking at the Arabian Hotel Investment Conference (Ahic) yesterday, Martin Berlin, a partner and global deals real estate leader said the issues and challenges facing the Middle East hospitality and tourism industry can be grouped into five categories, collectively known by their acronym ADAPT: which refers to the increasing wealth disparity, the disruption of business models, the demographic pressure on business, increasingly nationalism, and the declining trust in institutions and consequences of technology.

In his speech, Berlin said that “the tourism and hospitality industry is on the cusp of massive growth in the Middle East and it can play a key role in responding to some of the big challenges we face around job creation and the evolution of the private sector.”

“But if it is to play such a central role, the entire tourism value chain must work together to realise future opportunities — through digitisation, differentiation, alignment and the development of a mindset that embraces tourism and customer service.”