Fair trade

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Philip Barnes, Fairmont's regional VP.

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Fairmont's regional VP Philip Barnes shares his insight into the hospitality industry with Edward Poultney.

Philip Barnes is in a good mood and no wonder.

As VP of The Fairmont Hotels & Resorts Middle East VP he is at the helm of one of the region's most successful hospitality groups.

And he is adamant that the tourism industry is growing at such a rate that it is more than capable of overcoming any recent upheavals.

"Governments have recognised the value of tourism far more than they used to; they've realised that the value of the trade is huge. Traditional destinations are actually losing market share because other countries have realised the value of attracting this business. Look at Dubai and look at the huge volume of income that it's worth to the hotels, shops, parks..."

The tourism trade is indeed big business, annual revenues from consumer trade amounted to over US$2 trillion in 2007 alone. The Fairmont's expansion is the perfect indicator to how the development has shot up in the region in the last five years.

Barnes sums it up: "There's an awful lot happening when you consider that in 2002 we had the Fairmont Dubai and that was about it.

"Our biggest expansion in the region at the moment is on The Palm [Jumeirah]; it encompasses over 1,300 unbranded apartments plus two hotels. So that's obviously a huge project along with everything that goes with it in terms of staff housing, laundry and just all the logistical challenges of working somewhere like The Palm."

In addition to the Palm developments, which are scheduled to come online gradually over the next two years, the group is also undertaking a project in Abu Dhabi and another in Fujeirah in conjunction with Sheikh Sultan, the owner of the Fairmont Dubai. Two more UAE developments are also yet to be announced in the capital and in Al Ain.

Outside of the UAE the Fairmont is involved in launches in Oman, Jordan and Saudi Arabia as well as three signature hotels in Cairo, all opening their doors to the public this year. There are further developments planned for India, Africa and the Seychelles.

"The Middle East went through a huge spurt of growth in the 1970s, when there was a huge amount of investment in tourism and facilities. Then, other than in Dubai, there was really a bit of a lull," explains Barnes. "A lot of properties out there are a bit dated and don't really meet the needs of today's travellers so there's a huge amount of opportunity."

That opportunity coincides with a sharp rise in the amount of travel undertaken by the general public. With relatively in-expensive air fares, people are not as reluctant to go further and stay longer, while seeking something beyond the bland sun and sand combination.

"Travelling used to be a privilege, but now it's a right," says Barnes.

"People are looking for new destinations, and ones that are indicative of that region and culture. The general public is now much better informed, all you have to do to find out about a destination is go to Google and it's all there. I took my kids to Kenya just before Christmas. You go to see something authentic, you're not going to see lions in the wild at Disneyland, or get a feel for the history of Egypt anywhere else."

Kenya is a perfect case study for the political uncertainty that always hovers on the edges of some of the more exotic destinations. The violence that swept the country following contested elections swept away in a week the image of peaceful stability that had prevailed for the last half century. The hospitality sector in particular felt the brunt as bookings for the quintessential African safari destination bottomed out overnight.

"It came out of nowhere for our guys who are operating out there," admits Barnes. "In the world in which we live, people realise that there is risk everywhere. While the troubles were going on there, inbound tourism ground to a halt; the question is - how long will it take to get going again?"

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