Leadership in the limelight: insights from GMs of luxury hotel in KSA

Leadership in the limelight: insights from GMs of luxury hotel in KSA

Saudi Arabia’s luxury hospitality industry is undergoing a remarkable transformation, driven by Vision 2030 and significant investments in tourism and infrastructure. A recent panel discussion at HORECA Riyadh highlighted the kingdom’s readiness to welcome international tourists, the opportunities in emerging markets and the pivotal role of community empowerment through Saudization.

Key insights included the balance between market supply and demand, the integration of technology to enhance guest experiences and the importance of preserving Saudi culture and brand integrity. The conversation underscored the industry’s bright future as it aims for global recognition and sustainable growth.

Moderated by Dagmar Symes, CEO of Hill Robinson Estates LLC Saudia, the session provided an insightful exploration of the kingdom’s burgeoning luxury hospitality industry. Panelists included: Guenter Gebhard, regional vice president and general manager of Four Seasons Hotel Riyadh at Kingdom Center; Rolf Lippuner, general manager of Fairmont Hotel Riyadh; Fadi Sawaya, area general manager of InterContinental Hotels Group (IHG) and general manager of Crowne Plaza Riyadh RDC; Muin Serhan, CEO of Amsa Hospitality; and Bastien Blanc, co-founder of TroKadero Hospitality Global. The session covered a range of topics, from Vision 2030 to market dynamics and the evolving role of hospitality in the kingdom.

Vision 2030 and the role of hospitality

Vision 2030 is transforming Saudi Arabia into a global tourism hub. Investments in mega projects like NEOM, The Red Sea Project and cultural initiatives are reshaping the hospitality landscape. The panelists agreed that the kingdom is not only ready for an influx of international and domestic tourists but is exceeding expectations in infrastructure and service offerings. The easing of visa regulations and diversified attractions were highlighted as critical enablers.

Economic growth and market readiness

Saudi Arabia has been identified as one of the most competitive markets in the global hospitality industry. Riyadh’s hotel sector remains driven by business and government travel but is seeing growing interest from individual and cultural travelers. Maintaining a balance between the supply of new rooms and the demand generated by large-scale events and projects is essential.

The kingdom’s domestic market provides a strong foundation, with 50 percent of the GCC’s population residing in Saudi Arabia. The influx of foreign visitors—27 million in 2023 alone—demonstrates Saudi Arabia’s rising prominence as a global tourism destination.

Community empowerment and Saudization

Exploring how the expansion of hospitality empowers local communities, the panel highlighted the role of secondary markets, where smaller hotels bring job opportunities and support vocational education. He shared how Amsa Hospitality has established academies to train local talent, addressing gaps in skills and fostering a culture of excellence.

The importance of Saudization in creating a sustainable workforce was highlighted, with mentoring and education regarded as essential tools for integrating young Saudis into leadership roles within the industry.

Navigating international markets

Given Saudi Arabia’s growing ties with China, the panel discussed the kingdom’s readiness to cater to Chinese travelers. Efforts like language training for staff, adapting food offerings, and partnerships with Chinese brands were identified as crucial steps. Saudi Arabia’s preparation for Chinese tourism was described as comprehensive, with tailored services and facilities being rapidly developed.

Challenges and opportunities

While the GMs and experts celebrated the industry’s growth, they acknowledged challenges such as the risk of market oversupply and the need for better infrastructure in secondary markets. Indeed, high investment costs in secondary locations limit the development of luxury hotels, suggesting a focus on midscale properties to meet demand.

Opportunities in areas like F&B, where unique culinary experiences can drive differentiation, were highlighted. Ensuring brand integrity and consistency while preserving Saudi culture and hospitality was recognized as essential for delivering globally competitive services.

Technology and innovation

The integration of technology in hospitality was another focal point. Implementing technology to enhance guest experiences without replacing the human touch was advocated. Innovations like digital twins for hotel design and people-less check-ins were highlighted as ways to improve efficiency and sustainability.

Future aspirations

Expressing optimism about Saudi Arabia’s trajectory, the discussion emphasized global recognition for the kingdom’s hospitality sector, with investment in talent development, sustainability, and cultural promotion as key priorities for the future.

The session ended on a high note, reflecting the transformative journey of Saudi Arabia’s luxury hospitality industry and its potential to become a global leader in tourism. Their diverse expertise provided a comprehensive exploration of the industry’s dynamic growth.

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