The new road to Damascus

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The Four Seasons Damascus.

Syria's hotel industry has not had it easy in recent years but, as Gareth Rees discovers, with increased government spending on tourism and an influx of tourists, more and more hotels and investors are realising Syria's potential.

Syria's hotel industry has suffered in recent years due to negative international perceptions of the country fuelled by events in neighbouring Lebanon, but in 2008 the industry is not just back on its feet but walking along the road towards a much brighter future.

Figures from the Syrian Ministry of Tourism for the first quarter of 2008 indicate a 23% growth in visitor numbers to the country, and the government has renewed its commitment to boosting Syria's tourism sector, launching a sustained campaign to market the country on the world stage.

"The market is buoyant, it's very positive moving forward. The hotels are all projecting strong occupancy levels and the forecast for the future is that it's only going to continue," says Four Seasons Damascus director of marketing Julian Crane.

"The hotel is doing extremely well and we are anticipating that occupancy levels will grow. They have grown quite significantly since opening, so it's going at a good pace."

The Four Seasons Damascus opened its doors in 2006, just as relations between Syria and Lebanon were at their lowest ebb. Crane admits that it was a slow start, but argues that's the case with "most hotels". Occupancy between 2006 and 2007 grew 10-15% and sits at a healthy 70% for the first five months of 2008.

So despite a bumpy start, Four Seasons Damascus is now on the right path - a change brought about by a shift in the country's situation and the positive attitude of the government, which has led to a healthier economy, the building of new infrastructure and what Crane calls "positive political dialogues internationally".

"The market is opening up here and we're seeing new banks, insurance companies, retail and car manufacturers [in the country]. It's really changed over the last year and a half and a lot of that stems from the perception of Syria now as a destination," he says.

"The international perception of Syria has changed significantly; there's been a big shift, and Syria is being seen in terms of a tourist destination. It's always been a safe place to visit, but that message is now getting through."

Four Seasons has anticipated this demand to perfection and is now reaping the rewards of that foresight, according to Crane.

"Our entry into the market was very timely, it was good foresight from our owners, who eight or nine years ago said there could be potential in Syria," he says.

"At the time there probably wasn't a whole lot of corporate and business demand coming through Syria because the country was, and is, still opening up."

This "opening up" is the reason investors are beginning to see the potential of the country and the tourism sector is growing, making it the ideal time for hotels to move in and take advantage of a market where demand is increasing, but supply is limited. The Four Seasons currently has only two close competitors - Sheraton Damascus Hotel and Le Méridien Damascus - both of which have been in the market for a quarter of a century.

"Demand is strong, but the supply is relatively static in terms of size. Therein lies an opportunity," explains Crane.

"It's like developing anywhere, a matter of having the local know-how and ensuring you're going by the laws of the country. Syria is very much worth considering."

Four Seasons welcomes the majority of its guests from within the Middle East region, with Crane putting the figure at 65-68% of the hotel's total business made up primarily of visitors from the Gulf States, Saudi Arabia and Kuwait.

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