More government tourism initiatives needed, says Kingdom's Zok

More private equity and government initiatives are necessary to facilitate increased investment in developing Arabia’s tourism infrastructure, says Sarmad Zok, Chief Executive Officer of one of the Middle East’s largest private hotel investors.

Kingdom Hotel Investments, an affiliate of HRH Prince Al Waleed bin Talal bin Adbel-Aziz al-Saud, will join other regional tourism leaders in debating investment issues at the Arabian Hotel Investment Conference, from April 30 and May 2 in Dubai.

According to Zok, demand from both intra-regional and overseas leisure markets has focused attention on the attractions of Middle East destinations.

“While we see Egypt, Lebanon and Dubai as the hotspots of the industry, there is also potential in destinations such as Qatar, Kuwait, Bahrain, long-term in Libya and, farther afield, in the African continent and Indian Ocean,” said Zok.

“Visitor numbers are up across the board,” said Zok. “The World Tourism Organisation is predicting significant growth for the Middle East region, and both governments and the hotel sector have to position themselves to capitalise on this surge in interest.”

However, he warned that destinations must not focus on any one sector to the detriment of others, “In our hotel portfolio, by adopting a diversification strategy we are careful to mix both leisure and business properties and cater to all market requirements,” he said, pointing to the phased opening of Four Seasons’ hotels in Egypt.

“Here, we opened a property in the gateway city of Cairo, followed by a resort in Sharm El Sheik, a second city hotel in the capital and will follow this by opening up in Alexandria, adding a deluxe option to the hospitality sector in that city for the first time.”

A global player noted for his astute investments, Prince Al Waleed has substantial holdings in Four Seasons, Fairmont and Movenpick hotel groups, and it is with these brands that Kingdom is expanding through the Middle East, moving in to both established and new markets to sustain region-wide growth.

KHI has substantial developments underway, including Four Seasons hotels in Beirut and Damascus, while Fairmont’s flag is due to be planted in Cairo, and The Palm, Dubai. Movenpick also has extensive expansion plans covering the entire region.

A curtain raiser to the Arabian Travel Market, the Arabian Hotel Investment Conference at Madinat Jumeirah conference centre in Dubai is organised by CB Richard Ellis Hotels, one of the largest commercial real estate firms in the world, and MEED Conferences.

At the event, industry leaders will discuss the future of the hospitality industry in the region and the drive to encourage inward investment.