For IHG Hotels & Resorts, the Middle East is an important region. In this interview, Haitham Mattar, IHG’s managing director for India, Middle East, and Africa (IMEA), shares insights into the company’s growth and strategic initiatives in the region. He also dissects why Middle Eastern destinations are popular and how IHG is adapting to a more digitally-driven tourism sector.
You manage IHG’s business and growth strategy across the Middle East, Africa, and Southwest Asia. Can you share with us the biggest and most successful properties in your portfolio, especially in the Middle East? How are they faring, especially now that the region is experiencing a tourism boom?
With over 190 operating hotels across nine brands in the IMEA region, IHG Hotels & Resorts offers a diverse portfolio that caters to the region’s evolving tourism landscape. Our properties across the region are experiencing high demand, particularly in key cities like Dubai, Riyadh, and Jeddah.
For instance, the phenomenal growth in spiritual tourism in the Kingdom is addressed by voco Makkah, the largest voco hotel globally with an impressive 4,321 keys. In Saudi Arabia, where the sector is witnessing unprecedented demand for massive investment in tourism infrastructure, our brands have seen remarkable success, particularly in tier 1 cities like Riyadh, Jeddah, Madinah, Makkah, Dammam, and Al Khobar. In these cities, there are notable demand-supply gaps for quality upscale accommodation resulting from a domestic business and leisure tourism boom.
In the United Arab Emirates, we boast the iconic InterContinental Ras Al Khaimah Resort & Spa, a popular destination for both domestic and international travelers. We have also recently introduced The8, our first Vignette Collection hotel to open in the region, on Dubai’s popular Palm Island. This impressive conversion property opened in record time and is already performing exceptionally well. Additionally, our Dubai Festival City Portfolio continues to attract conferences, meetings, and events.
We are proud to be part of the region’s tourism boom, with upcoming openings and signings that reflect the growing desire for diverse accommodation options.
What makes Middle Eastern countries a top destination among tourists? Can you share specific cities that you think boast a stellar tourism sector?
There are several reasons why countries in the region have become leading destinations for global tourists. First and foremost, the region offers a rich tapestry of history and culture, with landmarks and sites that date back thousands of years.
There are stunning natural landscapes of every variety: desert dunes, enchanting oases, sprawling mountain ranges, turquoise waters, pristine beaches, and a vibrant list of futuristic or ancient cities. These include Abu Dhabi, Riyadh, Cairo, Doha, Dubai, Jeddah, Muscat, Ras Al Khaimah.
The region also offers countless tourist attractions, events, and experiences for every type of visitor and family. At the same time, our weather and climate provide year-round opportunities for various outdoor activities for adventure seekers and nature enthusiasts alike.
Furthermore, Middle Eastern countries are renowned for their hospitality and warmth toward families and single travelers. Many destinations also rank among the world’s safest. According to the online database site Numbeo, Abu Dhabi is the world’s safest city, with Dubai ranking fourth.
Vitally, tourism prospects for the region have been enhanced by extensive worldwide promotion by destination authorities, while the ongoing success of regional airlines in the global travel arena continues to make the Middle East more and more accessible.
The leisure tourism sector is complemented by a vibrant business tourism and MICE segment, where a strong portfolio of multi-industry international and regional B2B and B2C exhibitions and events welcomes tens of millions of visitors every year.
For instance, the UAE offers a superb tourism mix with Dubai’s depth, volume, and maturity, Abu Dhabi’s culture-meets-entertainment proposition, and Ras Al Khaimah’s adventure portfolio.
In Saudi Arabia, Riyadh and Jeddah continue to lead the leisure and business tourism sector. By simplifying visa procedures, expanding travel destinations, and investing in leisure infrastructure, Saudi Arabia has raised its profile as a leading destination on a global level.
Egypt remains a strong and popular year-round destination, drawing a consistent and diverse influx of both leisure and corporate visitors. Ongoing developments growth in business travel numbers, while recent governmental initiatives, such as the new national museum and the inauguration of additional international airports, are poised to sustain Egyptian tourism’s growth trajectory.
Why do you think tourism thrives in these places? What can other cities learn from them in terms of promoting their tourism and hospitality industry?
While every destination globally must play to its strengths — whether that is culture or climate — a common denominator in the success of regional cities and countries has been effective destination-wide strategies leveraging stakeholders and partnerships to support sector-wide growth, be it in sustainable tourism, accessible tourism, business tourism, or inclusivity initiatives. In the UAE, where leadership foresight is among the best in the world, the Dubai Economic Agenda 2033 (D33) aims to further cement Dubai as one of the top three cities in the world to visit, live and work. Tourism is key to everything Dubai does — it is never an afterthought.
Abu Dhabi’s new Tourism Strategy 2030, which aims to boost visitor numbers to 39.3 million by 2030, signals a new era of expansion and strategic development in the emirate’s travel and tourism sector.
In Egypt, the National Strategy for Sustainable Tourism 2023 targets a surge in tourist arrivals to 30 million by 2028. The country prioritizes preserving archaeological sites and promotes natural attractions through social and digital campaigns showcasing its abundant offerings.
Saudi National Vision 2030 and the related government efforts on social and economic reforms have boosted industry confidence and reinforced efforts to build a wide range of quality, internationally branded accommodation across the country.
Events like Jeddah Season, Riyadh Season, Red Sea International Film Festival, and Formula One Grand Prix have resulted in both domestic and international footfall. Also, an increase in business activity has already created a need for greater diversity in guest offerings and price points. Accordingly, Saudi Arabia’s tourism sector is rapidly evolving. IHG Hotels and Resorts, as a pioneer in the region, is deeply committed to this growth. We have a substantial presence in Saudi Arabia, with 40 operating hotels and 32 in the pipeline, constituting 50 percent of our regional pipeline.
To optimize the industry’s growth beyond 2024, and as always, destinations must remain agile to evolving traveler preferences. Keeping pace with dynamic tourism trends is essential for driving robust expansion in both the tourism and hospitality sectors.
The industry is constantly changing, especially with the pandemic and the emergence of AI and other new technologies. What are the biggest trends or changes you’ve seen in the past years that have had an impact on the travel and tourism sector? Looking forward, what will reshape the landscape?
In the past few years, we have seen increased demand for smarter, technology-enabled hotels that enhance guest experiences. Hospitality groups must keep up with consumers’ needs and the evolving technology landscape.
While family holidays still take the biggest share of the global travel market, the rising Generation Z population — who are heavily influenced by a destination’s image, whether it’s gastronomy, adventure, culture, or overall unique experiences — are expected to shift the landscape. This audience is also environmentally conscious and looks for hotels and products that prioritize sustainability, energy efficiency, waste reduction, and eco-friendly initiatives. Sustainability must be central to everything.
We are also seeing more and more advanced features and facilities for properties and guests, including the use of virtual reality, chatbots, digital amenities, and contactless payment methods. Still, it is going to be very exciting to see how technology developments impact guest experiences.
In what ways is IHG innovating to adapt to these changes? How do you cater to the changing demands of travelers?
In a world where seamless experiences have become the norm, our brands and properties’ digital capabilities are crucial to guests and property owners. We are investing in new-age tools, technology, and solutions to enhance the experiences across the value chain significantly.
IHG Concerto, our cloud-based platform, is the cornerstone of our digital advancements. By consolidating essential hotel applications into one powerful platform, Concerto enables the continuous and rapid introduction of new features and functionalities at scale. For example, our Concerto for Owners platform assists in cost management and property performance evaluation, providing real-time access to key metrics on any device with just a click. Meanwhile, guests can customize stays by selecting add-ons with price adjustments based on their personal preferences.
Our 360-degree approach ensures IHG’s ongoing investment in cloud-based technology accelerates the rollout of digital upgrades to enhance guest experiences that prioritize safety and security. Our next-generation IHG mobile app leverages innovative designs and data insights to offer a more immersive customer experience. The app allows users to access IHG One Rewards to choose and redeem Milestone Rewards, enables personal marketing offers, and provides a user-friendly experience.
Hotels also need to be mindful of cultural norms and practices to offer personalized experiences. Customers in the Middle East may prioritize hotels and resorts that provide halal-certified food options, prayer facilities, and other services in line with Islamic cultural requirements. Investors and customers alike may seek properties that respect and cater to local customs. Cities like Dubai serve as both business and leisure destinations, so travelers may look for properties that cater to both types of experiences in line with trends of guests extending work trips for leisure breaks.
It’s important to recognize that customer and investor preferences can shift over time, and the hospitality landscape in the Middle East might undergo further changes in response to global events and market trends. Therefore, keeping abreast of current market research and trends is crucial for businesses and investors aiming to thrive in the region.
Any upcoming projects in the pipeline that tourists and travelers in the region can look forward to?
We have a pipeline of over 70 hotels set to open in the region in the next 2 to 5 years. Among those, we are very excited about the imminent opening of our first Hotel Indigo in Oman this year. Hotel Indigo Jabal Al Akhdar will feature 176 design-led rooms, suites, and hammock villas, drawing inspiration from its remarkable ‘Green Mountain’ location.
With close to 40 hotels in IHG’s confirmed Saudi pipeline, we look forward to opening our key properties in Riyadh’s King Abdulla Financial District (KAFD). The Regent Riyadh KAFD, InterContinental Riyadh KAFD, and Kimpton Riyadh KAFD are set to deliver first-class and luxury hospitality for KAFD’s corporate travelers and visitors. We are thrilled to have such a prominent presence in this landmark business district focused on sustainable development and lifestyles.
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