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Discuss this article (3 Comments)Job losses hit 21% of hotel staff in MENA
by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 21 April 2009
JOB CUTS: Hotels across MENA are axing staff in preparation for leaner times ahead. (Getty Images)
More than one fifth of hotel staff in the Middle East and North African (MENA) have been made redundant in the last 12 months, according to a new report.
The survey by recruitment website Catererglobal.com of more than 3,500 regional hospitality professionals reveals that 21 percent lost their jobs in the last year, as a result of cost cutting in preparation for turbulent years ahead.
However, the survey showed that three quarters of those that had been made redundant had found other work in the hospitality industry , said a report of the survey in UAE daily Gulf News.
According to Catererglobal.com's sales director, Peter Willis, only 39 percent of hotel projects in the pipelines are going ahead.
But that still meant there 86,000 confirmed hotel rooms were forecaste to come online by 2011 in the Gulf region alone, he added.
In view of this, drastic redundancies may prove to have more damaging, long-term knock-on effects for operators, who will have to spend money on recruitment and training later on, Willis warned.
"With many properties feeling the credit crunch strain, human resource departments have been forced to severely cut costs in order to balance the books and deliver on their stakeholder or shareholder obligations," he said.
"However, sudden, wide-scale redundancies may lead to future problems, including incurring heavy costs - both in terms of time and money - to recruit and train new employees when market conditions improve,” Wills added.
Staff retention and training were key elements to surviving and flourishing in the post-downturn recovery, Willis said, adding that it was encouraging the survey showed 67 percent of Human Resource directors had recently increased learning and development opportunities to address staff retention.
"It is the hotels which realise its people are its brand, and seek to maintain service quality, which will see their properties' market share boosted when conditions becomes more stable," Willis concluded.
READERS' COMMENTS
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Hotel Bookings Continue to Diminish
Posted by Analyst on Wednesday 22 April 2009 at 03:36 UAE time
First I'd like to respond to one of the comments that GMs of hotel groups have stated that bookings have barely been affected. Reports indicate Dubai has been hit hard with a 30-50% decrease in bookings throughout Dubai. Hotel restaurants are EMPTY, and hotels are advertising low priced "DEALS" to attract individuals to come in and dine. as we progress to Summer those bookings will be hit even harder with an expected 75% decrease in bookings. I do agree with the other comment, that Arab and foreign investors have been blindly moving forward with the building of 5 star hotels. Most of the Directors in these development companies should be let go because they are not offering the best advice to their companies. The new consumer both leisure and corporate is "hardwired" to efficiency and cost cutting with comfortable surroundings, not necessarily palatial surroundings. The fact of the matter is GREED. It costs the same to build a square room, higher end furnishings cost more, but not that much more to equate a $500-700 a night charge. The hospitality industry is being hit hard globally and especially very hard in the GCC countries with Duabi being hit the hardest. They are preparing for a tough road ahead in the coming next few years...yes I said next few years. Look at the current state of operations, western governments describing how the small glimmer that might be seen as hope is actually a downward spiral into a deepening financial crisis. The current developers need to shelve their greed and do the right thing in this "NEW" era of financial responsibility. Gone are those $1,000. a night rooms for managers.
If executives continue in this fashion, and I recently spoke to someone visiting New York from Abu Dhabi, a mid manager, staying at a 5 star Central Park hotel room. Now that was one week ago, when is Dubai and Abu Dhabi going to tighten the purse strings and say "NO!"? Things have to really change through actions, not a bunch of words. Rethink your business strategies! Cheers to all!
Posted by Analyst on Wednesday 22 April 2009 at 03:36 UAE time
First I'd like to respond to one of the comments that GMs of hotel groups have stated that bookings have barely been affected. Reports indicate Dubai has been hit hard with a 30-50% decrease in bookings throughout Dubai. Hotel restaurants are EMPTY, and hotels are advertising low priced "DEALS" to attract individuals to come in and dine. as we progress to Summer those bookings will be hit even harder with an expected 75% decrease in bookings. I do agree with the other comment, that Arab and foreign investors have been blindly moving forward with the building of 5 star hotels. Most of the Directors in these development companies should be let go because they are not offering the best advice to their companies. The new consumer both leisure and corporate is "hardwired" to efficiency and cost cutting with comfortable surroundings, not necessarily palatial surroundings. The fact of the matter is GREED. It costs the same to build a square room, higher end furnishings cost more, but not that much more to equate a $500-700 a night charge. The hospitality industry is being hit hard globally and especially very hard in the GCC countries with Duabi being hit the hardest. They are preparing for a tough road ahead in the coming next few years...yes I said next few years. Look at the current state of operations, western governments describing how the small glimmer that might be seen as hope is actually a downward spiral into a deepening financial crisis. The current developers need to shelve their greed and do the right thing in this "NEW" era of financial responsibility. Gone are those $1,000. a night rooms for managers.
If executives continue in this fashion, and I recently spoke to someone visiting New York from Abu Dhabi, a mid manager, staying at a 5 star Central Park hotel room. Now that was one week ago, when is Dubai and Abu Dhabi going to tighten the purse strings and say "NO!"? Things have to really change through actions, not a bunch of words. Rethink your business strategies! Cheers to all!
New hotel projects
Posted by George Ittyarah, Dubai, UAE on Tuesday 21 April 2009 at 19:34 UAE time
It is really an eye opener if 21% hotel staff had already lost their jobs during these 12 months. Arab investors are blindly guided by a wrong notion that hundreds of 5 & 7 star hotels can transform the volatile face of Middle East to a glamorous tourists' paradise with tourists from all over the world flocking around.
Thanks
George C. Ittyarah
Dubai
Posted by George Ittyarah, Dubai, UAE on Tuesday 21 April 2009 at 19:34 UAE time
It is really an eye opener if 21% hotel staff had already lost their jobs during these 12 months. Arab investors are blindly guided by a wrong notion that hundreds of 5 & 7 star hotels can transform the volatile face of Middle East to a glamorous tourists' paradise with tourists from all over the world flocking around.
Thanks
George C. Ittyarah
Dubai
Job losses hit 21% of hotel staff in MENA
Posted by Mr Jolly, Dubai, UAE on Tuesday 21 April 2009 at 14:01 UAE time
How can this be so when week after week I have heard hotel general managers and CEO's of hotel groups stating in the press that bookings in Dubai have either not been affected at all or are only very slightly down during the first querter of this year?
Posted by Mr Jolly, Dubai, UAE on Tuesday 21 April 2009 at 14:01 UAE time
How can this be so when week after week I have heard hotel general managers and CEO's of hotel groups stating in the press that bookings in Dubai have either not been affected at all or are only very slightly down during the first querter of this year?
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