Oil exploration and trade may have contributed to massive economic growth in the Middle East a few decades ago, but recent developments including economic diversification, market liberalization and the establishment of internationally renowned business centres and financial zones have had a positive impact on the region’s balance sheet.
With extensive promotion in international markets about the benefits of business in the Middle East and the subsequent influx of foreign investment, it is not just the stock exchanges that are recording strong growth – the hotel sector has experienced a significant boost in demand.
As the largest hotel operator in the region, InterContinental Hotels Group has witnessed a healthy growth in business in the Middle East during the past decade. Chris Moloney, Chief Operating Officer, InterContinental Hotels Group, Middle East and Africa, said: “The Middle East has always been an exceptionally vibrant market and an area that InterContinental Hotels Group has consistently achieved strong results.
“In the past decade, especially with the initial introduction of an increased number of tax free trade zones, we have experienced wonderful growth and a higher level of demand than ever before at our properties that accommodate business visitors. Even though many major business projects are still in the development phase, the hotel sector – particularly InterContinental Hotels Group – is already experiencing the positive knock-on effect. We are witnessing the strongest growth in the UAE, Qatar, Saudi Arabia and Bahrain.”
With more than 6 properties in the UAE, InterContinental has been caring for business guests to the city for more than 30 years with its five-star InterContinental Dubai creeks-side property. Since the formation of the UAE in 1971, Dubai has developed rapidly from an oil and gas based state to a broad-based market economy. Now offering a world-class airline, Emirates Airlines and world-class tourism – including more than 30 five-star hotels, Dubai set itself as the forerunner in the Middle East with the establishment of Dubai Internet City and Dubai Media City. Hosting both Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund in 2003-2004, Dubai and its first-class hotels were firmly established on the global stage.
“Dubai is one of the fastest growing cities in the region, and one of the world's most prominent centres for business and leisure. But from InterContinental Hotels Group’s perspective, we expect further growth at our properties.” said Moloney.
Across the Gulf, the future looks just as bright for the business and hotel markets. In Bahrain, InterContinental Hotels Group is forecasting strong growth with the development of the Bahrain Financial Harbour – which is a $US1.3 billion integrated master-planned development. The project, which reinforces Bahrain's position as the international financial centre of the Middle East, has been designed to address every single need of the financial service sector. With a reputation as one of the region's leading banking and finance centres, the foundation stone for the development was laid in December 2002. To be built on a land area of 202,272 sq metres (2.17 million sq feet), construction on the project is likely to be completed by 2010.
With the Crowne Plaza and an InterContinental property currently in Bahrain, InterContinental Hotels Group have already experienced a boost in business with the project underway. “The Bahrain Financial Harbour is an ambitious project that is being built on reclaimed land. With everything from office space and residential areas to retail and dining areas, this billion dollar-plus development is going to attract many more business visitors to the stunning Gulf State.”
The future for the hotel sector is steadily growing in Saudi Arabia where the citizens of GCC countries have recently been given equal treatment in purchasing and exchanging Saudi stocks, including shares of banks, insurance companies and real estate firms. With one of the Middle East’s finest business properties in the Kingdom, the InterContinental Riyadh, the world’s largest hotel group has witnessed first-hand the development of business over the years.
“Saudi Arabia is very interesting because it is not only vibrant but also fast-paced. InterContinental Hotels Group portfolio of properties cater to every desire that business visitors need. As an experienced service provider in the Kingdom, we have been able to boost occupancy at our properties by understanding our visitors’ needs, that is why our properties have been upgraded to include the most up-to-date technological services and most spacious and comfortable meeting rooms,” said Moloney.
In Qatar – a market that has become a trailblazer in terms of economic growth – InterContinental Hotels Group has also experienced a positive upturn in occupancy rates at its InterContinental Doha property with the ongoing economic development. Attracting world attention with its forward-looking leadership, favourable economic and political climate and strategic importance, Qatar has further developed its international stance with expatriate and foreign investors recently welcomed by the Doha Security Market, which will provide the people of Qatar to prosper further.
“Having developed greatly since the discovery of oil in Qatar in the 1950s and the development of the North Dome Gas field in the 1990s, the country’s massive oil and natural gas reserves continue to be the basis for Qatar’s future growth, but diversification into other fields has accelerated. The InterContinental Doha hotel sees visitors to Qatar from all sectors and this truly demonstrates what a liberalized market the country boasts,” said Moloney.
With a strong portfolio of properties in the Middle East, InterContinental Hotels Group is proud of its achievements in providing first-class service to visitors. Having walked away from the annual Business Traveller Middle East Awards with the best Business Hotel awards in Amman, Beirut and Riyadh, InterContinental Hotels Group have achieved impressive regional growth this year.
“It has been a great year for InterContinental Hotels Group in the Middle East with the Middle East Global Sales Office reporting that over 50% of the revenue generated was being driven into InterContinental, Crowne Plaza and Holiday Inn hotels and resort within the region. We are keenly aware that a great portion of the growth can be attributed to the strong rise of business visitors to the region.”
InterContinental, Crowne Plaza and Holiday Inn hotels across the region can be booked with toll-free calls to the InterContinental Hotels Group Middle East Central Reservations Office in Bahrain (80000 880), Egypt (0800-4433322), Jordan (0800-22666), Kuwait (473 2100 ext 6233), Lebanon (01 426-801 - ask operator to connect to 866 866 7556), Oman (800 777 999), Pakistan (00800 909 71005), Qatar (0800 971234), Saudi Arabia (800 897 1465), and the UAE (800 4642).
InterContinental Hotels Group PLC of the United Kingdom [LON:IHG, NYSE:IHG (ADRs)] is the world's largest hotel group by number of rooms. InterContinental Hotels Group owns, manages, leases or franchises, through various subsidiaries, more than 3,500 hotels and 535,000 guest rooms in nearly 100 countries and territories around the world. The Group owns a portfolio of well recognised and respected hotel brands including InterContinental® Hotels & Resorts, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express®, Staybridge Suites®, Candlewood Suites® and Hotel IndigoTM, and also manages the world's largest hotel loyalty programme, Priority Club® Rewards, with over 25 million members worldwide. In addition to this, InterContinental Hotels Group has a 47.5% interest in Britvic, one of the two leading manufacturers of soft drinks, by value and volume, in Great Britain. InterContinental Hotels Group offers information and online reservations for all its hotel brands at www.ichotelsgroup.com and information for the Priority Club Rewards programme at www.priorityclub.com. For the latest news from InterContinental Hotels Group, visit our online Press Office at www.ihgplc.com/media.
