HN MEETS DAVID TODD, HEAD OF OPERATIONS, MIDDLE EAST AND AFRICA, IHG

In a series of interviews highlighting hoteliers and their developments in the MENA, HN spoke with David Todd, to learn more about the highly acclaimed operator’s plans and preparations for the upcoming phase.

1. How would you describe the way the MENA hospitality industry dealt with COVID-19 pandemic?

This is an incredibly difficult time for us all, with the outbreak of COVID-19 impacting the everyday lives of billions of people around the world. From a global hospitality perspective, our industry faces the biggest challenge in its history, with global travel restrictions and social distancing measures having severely reduced demand in many of our markets. The MENA region is not unique to this scenario. The hospitality industry is all about people. It is built on the foundation of human connection and care for each other. During this difficult time, at IHG, we have ensured we support our communities as much as possible and play our part in relief efforts around the world, including markets across MENA. We know our peers have done the same. The resilience the industry has shown and the community contributions made during this crisis have exemplified the strength of the sector.

2. On a global level, many hotel chains initiated funds and programs to help keep their operations sustainable. Tell us more about IHG'S course of action.

Faced with the most challenging environment we’ve ever seen, we have had to make some difficult choices to reduce costs and protect our business for the long term. These have been some of the hardest decisions we’ve ever had to make, such as changing working arrangements for many corporate colleagues through reduced hours or furloughing, reducing salaries and canceling our 2019 final dividend to shareholders for the first time in our history. We have also significantly reduced costs and re-prioritised resources to focus only on what is needed to prepare for and drive recovery.

3. How do you think the hospitality industry in the MENA region will pivot post COVID-19?

The impact of this crisis on our travel and hospitality industry cannot be underestimated – but we passionately believe it will recover in time. People will always want to explore the world, relax or reconnect with friends and family; the wheels of business must turn, and events still need to be run. The hospitality industry across some markets in MENA has already started to see some early signs of recovery. As we expected, domestic leisure travel is returning first as restrictions are eased across many markets in the region. Business and international travel could take more time to recover as international borders are expected to open gradually. MENA is a dynamic region and has a lot to offer in terms of tourism and hospitality. Be it domestic travel, events, conferences, leisure stays or business trips – people travel to this part of the world for a lot of reasons and enjoy the warm hospitality that is a part of the culture here.

4. Do you believe we will witness new trends and if so, what can we expect to see?

As has been the case in previous downturns, we expect domestic mainstream leisure travel to return first, with business and international travel taking more time. While globetrotting isn’t an option, many still dream of escaping their homes for less distant destinations. Road trips will be at the heart of an initial recovery, with people likely to choose their cars over flights for the time being and head to accessible resorts and comfortable, safe and affordable accommodation they can trust.

5. Will the concept of hospitality shift and be disrupted by new models?

The biggest change guests will see in hotels is a very visible approach to safety, cleanliness and social distancing but, fundamentally, the hotel experience won’t change – it might look a little different, but it will feel just as special as it always did.

6. Which markets will be of greater interest to you in the near future and why?

As before the crisis, the majority of our growth in the MENA region will continue to be driven predominantly by the UAE and KSA. We also see opportunities more broadly across the region, particularly in Oman and Egypt. We are also working on a number of projects in Africa, both new builds and conversion in South Africa, Zimbabwe, Ethiopia, Kenya, Cameroon and Morocco.

7. Where do you see the brand in the next five years?

The pandemic has proven to be extremely challenging for the hospitality industry, however, we know that the MENA region is a prime business hub and consists of a vast number of popular tourist destinations. We are therefore committed to accelerating growth and expanding our presence across key markets in the long run.