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by ArabianBusiness.com staff writer on Tuesday, 19 May 2009
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The corporate travel market in Kuwait is holding its own for now, but a boost from leisure travellers is still a long way off, because of a lack of suitable attractions, according to hoteliers.
Kuwait has been described by hotel operators as a "pure business market". Some estimate that 95% of visitors to the country are travelling solely for business purposes.
In addition to the corporate market, a good percentage of traffic has filtered into the country as a result of conflict and rebuilding efforts in Iraq since 2003. However, this source has been waning for the past few years as countries slowly pull back military personnel and workers.
In addition, the general business market has seen a clear downturn, as a result of both the global financial crisis and the rise of regional offices for global companies.
Radisson SAS Kuwait general manager Jan Petter Eilertsen explains: "Many European companies have established regional offices in Dubai and are now sending people on business to Kuwait from Dubai instead of Europe.
"That often means that they can go back and forward in one day; so they don't need a hotel.
"The typical European traveller used to come for a week - six or seven days was not uncommon either - but we don't see this as much anymore."
Eilertsen says the downturn is "the beginning of something we have known will come for some time".
Ibis Salmiya general manager Pierre Gaudou says his property has also seen a downturn in the length of stay for most guests, as well as an increasing number of last-minute bookings and cancellations.
However, he says there is still a sustained volume of bookings, which he attributes to the hotel's lower prices and basic services.
"Hotels that think the way to attract flustered business customers is with luxury products will be wasting their money," says Gaudou.
"Based on an internal survey conducted over the past three months and including 10 business guests daily, we have shown that a high majority care essentially about the basics - good wifi access, easy check-in and check-out, a quiet environment and a high standard of hygiene and security."
Lack of leisure
Hoteliers agree that Kuwait is not equipped to promote itself as a leisure destination.
The country has a distinct lack of the tourist attractions and basic infrastructure that recreational travellers are demanding when on holiday.
Furthermore, tourist visas remain difficult to obtain, with the lengthy process enough to discourage potential travellers, according to Eilertsen.
"When you arrive at a destination you don't want to be bothered too much," he explains.
"Most countries need to have a visa upfront. Some can get them on arrival, but it can take up to two or three hours.
"Today, this is unacceptable. Business travellers often have no choice as they must travel to the country for work, but potential leisure travellers will not accept this."
Eilertsen says the country needs to work on transport, scenery, museums and tourist attractions.
Sharia is a safe investment
A recent survey conducted by BDRC Hotel Research found that resident travellers in Kuwait were largely in favour of sharia-compliant hotels.
Brands such as Tamani, Shaza and Almulla have already paved the way for hotels offering halal food, an alcohol-free environment and respect for Islamic values.
Rotana has also come on board recently, with its new brand Rayhaan Hotels and Resorts.
Of the nine regional markets surveyed, Kuwait recorded one of the highest ratings of approval, along with Jordan, Saudi Arabia and Qatar.
Ratings were noticeably lower in Lebanon, Oman and the UAE.
BDRC chief executive Dr Crispian Tarrant says there has been uncertainty as to the actual market strength of sharia-compliant hotels.
"In the many years that I have been involved in assessing the appeal of new hotel concepts, this is one of the highest set of scores I have seen," says Tarrant.
A recent survey conducted by BDRC Hotel Research found that resident travellers in Kuwait were largely in favour of sharia-compliant hotels.
Brands such as Tamani, Shaza and Almulla have already paved the way for hotels offering halal food, an alcohol-free environment and respect for Islamic values.
Rotana has also come on board recently, with its new brand Rayhaan Hotels and Resorts.
Of the nine regional markets surveyed, Kuwait recorded one of the highest ratings of approval, along with Jordan, Saudi Arabia and Qatar.
Ratings were noticeably lower in Lebanon, Oman and the UAE.
BDRC chief executive Dr Crispian Tarrant says there has been uncertainty as to the actual market strength of sharia-compliant hotels.
"In the many years that I have been involved in assessing the appeal of new hotel concepts, this is one of the highest set of scores I have seen," says Tarrant.
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