26 March 2009

BEIRUT: Haitham Mattar has a confident stride when he walks into the room, and with good reason. As the new commercial director and Near East and Area general manager for InterContinental Hotels Group (IHG), Mattar brings with him a line of extensive experience in industry best practices, earned in the US and the United Arab Emirates. Passionately prepared to apply his knowledge and enthusiasm to achieving the objectives of his new role, Mattar believes the hotel industry in Lebanon, the country where he will be based, has a reasonably bright future relative to the region.

IHG, most often recognized in Lebanon for their famous Phoenicia Hotel in Beirut, manages a total of five hotels in Lebanon and 83 in the region. Although the crisis has brought shortfalls in Dubai and Red Sea resorts in Egypt, the revenue-per-available-room has shown 1-percent growth across the region, and the group has been holding its ground surprisingly well in Lebanon. The five IHG hotels posted average occupancy rates of 85 percent in March, following a February rate of 90 percent, in comparison with an industry average in Beirut of 75 percent. Those occupancy rates are not expected to drop either, a trend which has sparked increased interest in investing in the industry.

Rejecting the popular belief that economic crises have the least effect on the well-off, Mattar pointed out: "There is an opportunity for growth on the mid-scale market and value-for-money hotels, like the Holiday Inn brand family. No one is immune to the crisis, everyone is being more frugal. The guy who used to book the presidential suite will now book the executive suite."

The strength of the banking industry and opportunities to buy and build on land for use in what Mattar calls "a very profitable industry" offer increased incentives for investment, supported by forecasts projecting "tremendous growth in tourism" that will likely be bolstered by initiatives to increase demand by promoting Lebanon as a year-round, rather than seasonal destination. Two million tourists are expected this summer alone, as long as the climate of overall political stability and security continues.

Despite his positive outlook, Mattar still holds to his adage that "no one is immune."

To offset any impacts of the financial crisis, he will "focus on investing in human capital and driving revenues rather than cutting costs."

To invest in human capital, Mattar already launched a succession plan to strengthen and develop talent from within, believing that offering employees education, training, and career evolution opportunities will increase confidence and motivation in a way that will rub off on the quality of their work.

"I want to leverage the strengths within our people to improve the guest experience," he stated.

To drive revenues, Mattar will focus on "opening to potential niche markets with outbound travel to other parts of the world." Instead of exclusively promoting IHG hotels, his strategy will lean on promoting Lebanon as a destination for business and leisure travel, capitalizing on Lebanon's proximity to other Arab countries and Europe.

"France and Germany have not been as negatively impacted by the crisis as other countries, and the United Kingdom still has a significant percentage of outbound travel, although a significant portion is transported with low-cost carriers," Mattar said. "Lebanon is a country rich in cultural history and nature and we need to promote that, especially to counteract a negative image that has been perpetuated by the news," he added. IHG will host more "familiarization trips" targeting travel agencies and tour operators in line with this objective, with a trip for French and German operators being hosted at the end of this week.

"I am cautiously optimistic about the future," Mattar stated, upholding the assertion that investment in the industry now is a wise move. "There has been a revival of confidence in investing due to the relative stability in Lebanon and a good performance record over the last year. This is the first time we have had 12 straight months of continuous, healthy operations since 2004." 

Investment in the industry is also a move that will generate an important economic benefit not only for investors, but for the country, an opportunity highlighted by the shortage of rooms that even a large group like IHG is experiencing.

Copyright The Daily Star 2009.