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Challenges facing the world's fastest growing hotel business
Published in The Saudi Gazette on 25 - 01 - 2012

Hotel industry in the holy city of Makkah is leading the world with a growth rate of 15 percent per year. It means more than 1,200 hotels will operate in the city by 2020.
However, the industry faces a major obstacle in bringing this vision to reality — narrow spaces and global features necessary for international hotels.
Ahmed Aagzoz, a tourism official, said the spread of hotels is not based on a specific vision. “All you have to do is to get a piece of land and apply to the municipality to get the clearance and then build, regardless of any specific plans.”
Makkah and Madina, he said, are totally different from other cities in the world in hotel rankings. “In Makah, you will not find more than 4 star hotels because they won't meet international standards of having swimming pools, restaurants, cafes, or entertainment. This is because of the less space available around the Grand Mosque,” he said, according to a report in Asharq Al-Awsat.
Muhammed Al-Ghamdi, another tourism official, said that there were strategic plans to start hotels in the city but acknowledged that they face many obstacles like land scarcity and an unstable market.
He said 90 percent of the guests are foreign pilgrims and some of them may never have been to a hotel before. Their visit is purely religious and this is reflected in the type of services provided to them. Most are looking for proximity to the Grand Mosque. “However, this doesn't man that the hotel should not provide the best possible services to please them,” he said.
Al-Ghamdi said the services are mostly unorganized and much attention is paid to the exterior look of the hotel. Earlier guests would ask for single rooms with bathrooms, so most hotels shifted to provide such facilities disregarding the set standards, he said.
Usamah Filaly, an economics expert, said Makkah doesn't lack proper planning but is far from what it should be. The main focus is on building hotels next to the Grand Mosque, leaving other areas. “This creates an unstable market,” he said.
Makkah city has an old, outdated planning and it needs to be modernized because of the rapid increase in the number of hotels. There are four major ongoing projects in Makkah — Jabl Omar, Al-Shamia, Jabl Al-Ka'ba, and another one behind Abraj Al-Beet. These are considered the largest projects in the city's history.
Filaly said there was a dire need to reorganize and reconsider establishing residential compounds for the pilgrims, which can cope with the needs of the coming phase. “It should be very remarkable for the accommodation industry in the holy city,” he said.
Meanwhile, luxury hotels have innovated a new type of service — having a hotel within a hotel. These hotels provide special services. For example, Makkah Clock Fairmont Hotel offers distinguished services to VIP pilgrims and businessmen. It recently launched the Golden Fairmont service, allowing guests to experience a modern, unprecedented lifestyle in the vicinity of the Grand Mosque.
The hotel takes into account the lack of space around the Grand Mosque, but still offers many services of international standards. From offering a classy reception for VIPs to its guests entrance, it has gone the extra mile to serve its rich customers. It offers an amazing view of the Grand Mosque, the Holy Ka'ba and the places around the holy city that, it says, will be preserved as everlasting memories for its customers. Guests can expect 24-hour personal assistance, appointment reminders, free newspapers, private breakfast and Canapés desserts and night beverages, exclusive access to free fully equipped meeting rooms, high-speed Internet service and full secretarial services.
Khalid Yemug, senior official at Fairmont Raffles Hotels International, says: “Golden Fairmont is a big step in the accommodation industry because of its unique services and the spiritual and private ambiance provided to the pilgrims and businessmen.”
The Golden Fairmont team is set to meet all the needs of the guests around the clock in a package that exceeds all expectations in order to make unforgettable impressions on the guests, he said.


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