Kuwait still means business

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Kuwait is still geared towards the business market.

As the influx of guests created by the rebuilding of neighbouring Iraq slows, Gareth Rees discovers that Kuwait's hotel industry, for now at least, is catering to a predominantly business clientele.

Kuwait has always been synonymous with business and the run-down airport, mirror checks under hotel cars and local regulations forbidding alcohol mean that the country isn't really prepared or preparing for western tourists, in the same way as, say, Dubai.

As Accor Middle East managing director Christophe Landais says, "Kuwait is not perceived as a leisure destination".

That is why Accor has chosen to introduce its Ibis brand of economy business hotels to the country, with the opening in March of its 175-room property in the Salmiya district.

"As far as the condition of the hotel industry in Kuwait goes, it really does depend on what market you're talking about," says Landais.

"We opened the Ibis on March 18 and just 14 days later we had achieved 72% occupancy, so it does show that for this market segment - economy lodging - there is a huge demand and it's an untapped market, so we feel confident this type of product will work as it did in Dubai."

For Landais, as long as potential hotel developers or brands wishing to enter the market accept the type of guests visiting Kuwait, they will achieve success.

"It all depends on what product you introduce to the market. If you developed a resort hotel and wanted to attract European clientele I don't think it would work, but if you create a business hotel targeting the intraregional clientele from the GCC it will be a success," he says.

"You have to position your product at the right level and offer the right kind of service for your guests."

Following the entry of this first property into the Kuwait market, Accor plans to open another Ibis property - the 160-room Ibis Sharq - in the first quarter of 2009, and Landais is certain that property will attract primarily business guests as well.

"At the Ibis Salmiya 80% of our guests are business travellers, as the Ibis product really is for the domestic business market rather than leisure, and the hotels are always located in the business district - it's not a leisure hotel it's a business hotel," he says.

But Accor also has a resort hotel under development on the coast according to Landais, which will cater to the domestic and intraregional leisure market "with a focus on Saudi Arabia" as well as the business segment. But he adds that on the whole "people are simply not going to Kuwait for leisure", preferring to visit places like Dubai where they can find "every service they could possibly want".

"We have the right product, in the right place, for the right people, because there is a lack of economy lodging. You have either the five-star hotel or the unclassified hotels. So coming with the Ibis brand we fit really well into the market, so we don't face any challenges," says Landais.

Positives and negatives

Of course Accor's positive early experience of the Kuwait market doesn't mean that there aren't any challenges, and Landais has already noted one serious issue that needs to be addressed by the government.

"They should certainly be more willing to change and try and understand what is wrong over there, for example if you need a visa for staff it is difficult and you have some hotels that have opened at half capacity because they couldn't get the staff visas," he says.

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