The suite life of hoteliers: Why am I in hospitality?

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A presentation to students of Alfaisal University in Riyadh on the growing hospitality sector in Saudi Arabia and career opportunities available.

A presentation to students of Alfaisal University in Riyadh on the growing hospitality sector in Saudi Arabia and career opportunities available.

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  •  Definition:Hospitality as per Oxford Dictionary is "Friendly and generous treatment of guest and entertaining of guests or strangers" Arab and Islamic history is full of examples of extreme of hospitality to the extent of sacrificing one's own leisure to serve others.Ancient Hospitality:Desert and Arid Land is environment most of Middle East was are still is. The Travelers thru Caravans needed Food, Water and Shelter.The desert settlers or herds grazing individuals were obliged to provide food, water and shelter to the travelers under a Code of Conduct.This indicates the acceptance of strangers, offer hospitality and not show any hostility towards them. The Arab World in general have been acquainted with Tourism for very long time.In the past few years the industry grew tremendously. In the 70`s one could count the hotels in the Kingdom on One’s fingers.Today there now more than________ hotels within the Kingdom.   We at Saudi Hotels & Resort Co. "SHARACO" believe that training is a "Continuous Process it never stops". To work in any industry one has to learn the specific of job in its fullest form via education and/or training.    We would, thru this forum, like to thank HRH Prince Sultan Bin Salman, who after establishing Supreme Council of Tourism and Antiquities (SCTA) has encourage and provided protection to the investors.
  • -          Growth in number of travelers to Saudi Source: MAS Report 2010Stats for the period 2004 – 2010Inbound International trips revenue 25.9 Billion RiyalThey spent 181 million room nightLocal trips 23.9 million  -          Growth in number of hotel rooms             Source: MAS Report 2010Sold room night in 2010 (32,076,690) against (28,155,708) room nights in 2009 with growth of 13% Source: http://www.meetmiddleeast.com/articles/show/saudi-hospitality-sector-worth-us32bnAccording to forecast by market research firm Business Monitor International (BMI), the world’s largest oil producer can expect to welcome nearly 16 million visitors by 2014, with some 381,000 new hotel rooms to be completed by 2015. BMI added that Saudi Arabia has emerged as one of the most captivating markets for foreign direct investment in the food, hotel and hospitality industries. % of Saudis in hospitality No clear stats but see below -          % contribution of hospitality to GDP Source (1): http://www.meetmiddleeast.com/articles/show/saudi-hospitality-sector-worth-us32bnSaudi Arabia’s travel and tourism sector is expected to contribute SAR120.5 billion (US$32.13 billion) in the Kingdom’s economy in 2012, up 3.7 percent on 2011, according to the World Travel and Tourism Council. By 2022, the sector is anticipated to be an even stronger component of national economy, contributing SAR180.2 billion annually and generating around 706,000 jobs Source (2): http://www.wttc.org/site_media/uploads/downloads/saudi_arabia2012.pdfThe total contribution of Travel & Tourism to GDP (including wider effects from investment, the supply chain andinduced income impacts was SAR116.2bn in 2011 (5.4% of GDP) and is expected to grow by3.7% to SAR120.5bn (5.4% of GDP) in 2012.It is forecast to rise by 4.1% pa to SAR180.2bn by 2022 (5.3% of GDP).
  • The Saudi hospitality industry has great potential and future for Carrier minded Saudis. The total revenues generated in the Year 2010 amounted to SR (73.3) Billion and it is expected to reach to (101.3) Billion in the Year 2020. The hospitality, as Saudis, we do not have to learn, it is in our blood and is part of our culture. What we have to learn is to utilize our cultural instinct and educate ourselves into Modern Hospitality Management and System.
  • At present very few Saudi Nationals take up temporary jobs but not as a Carrier, in this Industry. There always are vacancies available in most hotels. The employers try and train the Saudi associates and /or Executives but many Saudi find better pastures and quit. Hence, the turn-over is literally in every hotel is very high.
  • CARRIER BUILDING:How it works?There is an important saying "Practice makes a man perfect". this proverb goes true for the any industry or commercial organization but perfectly fits with the hospitality industry. The hotel has (6) major departments:ROOMS Which is divided into two areas. for example.1. Front Office (Reception, Bell Desk & Telephone).2. Housekeeping (Guest room, Floors , Public areas and part of back of the house). There is a manager for each of these department supported by their assistants, supervisors and associates.The responsibility of each person starting from the Head of the Department to the associates in defined in the Job Description.The same set-up, a department head, his assistant, supervisors and associates, applies to nearly all departments.How the training process works we will take one department as an example:The department is Front Office (Part of the Rooms Division).This department as said earlier is manned by Department Head, his assistant, supervisors and associates.Once an aspiring candidate is hired with or without the hotel industry background and wishes to progress to take up the position of Front Office Manager, he has to go thru the following process:Will work as Receptionist. Once Perfected and remained disciplined will be eligible to be promoted as a Reception Supervisor.If the Candidate potentially exceed his performance he will be promoted to the position of Assistant Front Office Manager and then to the Position of Front Office Manager.During the training the Candidate has to perfect himself in all aspect of the job description. Another very important point for the management during his carrier building as a hotelier is to observe the Candidate Aptitude. For example, a candidate`s aptitude and inclination is to become an accountant. The Management then will take steps to shift his program to prepare him for the position in accounting.Our experience is that many Saudis prefer glamorous positions. But this is not the step in the right direction. To become a Manager one has to learn "fine details" of the job. This could only be achieved by going thru training in various / sections / department.In our Company there are many "Success Stories".On Saudi gentleman who started his Carrier few years back as a receptionist is now a General Manager of one of our finest properties right here in Riyadh.Another Saudi gentleman who also started as receptionist, went thru as a Night Auditor, then worked in the Finance Department in various positions and finally became a Regional Revenue Manager. Both gentleman and many other Saudi Nationals have grew from a mere receptionist to Department head, General Manager and Regional Department Heads. We can quote many examples of Saudi Nationals who were developed by our Company and are working in very Senior Positions elsewhere.Our Country is full of educated and talented young people. What is needed is to develop the proper educational / vocational institutions to properly channel their enthusiasm and talent. For this purpose there is a desperate need of proper vocational and educational institutes. Our present dependent on the expatriates is fine and we thanks them to share their knowledge and train our people. But we need to develop our own people specially due to Safety and Security reasons. Another important factor is the support of the Government for subsidizing a job training “program” carried out by hotels for Saudi Nationals. The reason for the suggestion of subsidy is that the hospitality industry is one of those industries which has a very low return on investment, Hence its become very difficult to support the Saudization program.
  • I would like to introduce to you mrYahya Al Sayegh a graduate from Institute if Public Administration with major in Hotel Management. Way back 20 years ago this man started his journey in the hospitality industry a time when people in our country never gave a thought of a career in this wonderful industry, at that time in Riyadh being a capital had very few hotels the business was not so promising as today and the benefits were not at all compared to other public sector, a majority of people eyeing the jobs in government organization and other big names like SABIC or ARAMCO but never considered hospitality industry as a career. What I want to tell you that this gentleman saw the light in this tunnel of hospitality industry which not many people would have foresighted  In 1992 Yahya started as management trainee at Riyadh Marriott Hotel which is one of the known 5 star hotels in Riyadh. Yahya worked hard and was determined to make a career in the hospitality industry he started doing cross trainings in other major departments of the hotel since he was more focused in Sales & Marketing attained training in Front Office, Kitchen, Room Service, House-keeping and even in Engineering. In 1997 Yahya was promoted as a Sales Manager and this proved the mettle of success he kept working hard and attained core trainings provided by the Marriott International in various location. In 2001 he was promoted to the next level as a Senior Sales Manager and then there was no looking back for this gentleman along the time he embraced the change and achieved the positions and goals for his department and the hotel. His accomplishment got him to the next big level of Director of Transient Sales but in 2003 he made a interesting move he moved to F & B as a Director of Catering, sales background in F & B works like a magic and from there the Director of event Management and In 2005 he got the biggest break The Director of Sales and Marketing at the Riyadh Marriott Hotel with this position he surpassed the unheard of budget at that time during his tenure the hotel was on of the top revenue generating hotel in the middle east. In 2008 Yahya moved on to Makarim Riyadh Hotel as a Assistant General Manager and to holds the position of General Manger and instrumental in making the Riyadh Makarim Hotel what it is today he is applauded by the associates, guests and owners. So I urge the younger generation not to think that hospitality jobs are petty jobs as it was thought in the past it is a very satisfying and enduring job where you feel a great sense of fulfillment after seeing a guest leaving the property happy and satisfied.  Today world is changing embrace the change as these people had done 20 years ago and you will definitely see our new generation prospering with success.
  •    I’ve joined Marriott Hotel back in 2011: As a Night Auditor, I was the first Saudi who works in such position either in Marriott or any other hotel within the Kingdom. It was very frustrated in the begging as a young Saudi works from 12:00 AM till the 9:00 AM. But on the other hand that helped me allot to know and understand each and every department how it is working and what is their strengths and weaknesses. I’ve took many trainings in finance lead me to move into varies positions such as General Cashier, Accounts Payable and Purchasing Department. Since the management found me interested in career building and I have showed the willingness to move to the front of the house where this department has a high revenue and profit producing area to the hotel with a new responsibilities. I was trained in various countries with Marriott Hotels lead me to take over Revenue Manager of the property and working with others had tremendously demonstrated my ability and skills in right manner in order to balance the stakeholders, property and hotel guests. Developing others: I’ve been working in identifying and developing others to achieve the business goals of the hotel while I have been growing personally and professionally. My ability in conveying information to others has made me successful in my present position as Director of Revenue Strategy:Maximizing revenue and profit associated for both rooms and function space inventory across the three-customer segment of transient, group and catering.Recommend and maintain pricing, positioning and managing the rooms and function space inventory.Oversee the processes associated with maximizing revenue from existing demand.Forecasting and opportunity analysis (to include seasonality, competitive, positioning and displacement); Ensuring these strategies are effectively implemented. Leading:In the year of 2006 his dedication and initiatives to work are his prime keys of success. His courageous decisions in setting up seasonal rates had made positive impact on the business and that’s what the hotel ended up in achieving Average Rate growth by 30.1%, RevPar growth by 28.1% and hotel House Profit by 32.6% and he reduced the rebates by (28%) and increased the revenue from the Part-day & Guaranteed No Show by 265%. In terms of segmentation mix Thamer generated a remarkable number from increasing the revenue from the “Stay for Breakfast” segment by generating SR. 2,098,000 versus budget of SR. 370,000 and reduced the “Other Discount” segment from the budgeted revenue SR.1,010,000 to SR. 513,000. Director of Revenue Strategy & Cluster Talent Development Saudi Arabia: Oversees the Revenue Management Strategies and Activities of Riyadh Marriott Hotel and “revenue management” developing talents for Riyadh, Jeddah and Madinah Marriott Hotels.The role has overall responsibility for balancing the financial objectives of the Riyadh Marriott to maximize total hotel revenues. The position is accountable for pricing, positioning and inventory of the hotel. Oversees all processes associated with demand, revenue, inventory, forecasting and opportunity analysis. Develops and recommends sales strategy for pricing of the transient, group and catering customer. Acts as primary contact for and maintain productive relationships with all stakeholders including hotel General Manager, Sales Leader, Owners and Area / Regional Team.Those factors led me to accomplish and achieve the below awards:Best Revenue Leader of the year 2004 for UK, Ireland and Middle East.Best Revenue Leader of the 2006 2nd Quarter for Middle East.Best Revenue Leader of the 2006 2nd Quarter for UK, Ireland and Middle East. Best Revenue Office of the year 2006 for UK, Ireland and Middle East.Golden Circle Award “Bronze” for the 4th Quarter 2006Champions League 2 for RevPar Growth 2006Golden Circle Award “Bronze” for the 1st Quarter 2007Golden Circle Award “Silver” for the 2nd Quarter 2007Conducting Revenue Maximization Training for Riyadh, Jeddah and Madinah Marriott Sales Strategy Teams 2009.Golden Circle Award “Bronze” for the 1st Quarter 2010Golden Circle Award “Sliver” for the 3rd Quarter 2010Revenue Leader of the year 2010 4th Quarter of Middle East and Africa.Golden Circle Award “Bronze” for the 2nd Quarter 2011
  • عبد المحسن بن عبد العزيز الحكير .. في سطور شيخ السياحيين الخليجيين ...هو شيخ السياحيين الخليجيين كما لقبته مؤسسة "جولدن تيولب" العالمية، ورئيس مجلس إدارة شركة مجموعة الحكير للسياحة والتنمية.حصل الشيخ على شهادات عدّة في مجال الاستثمار السياحي، وتابع دورات في المجالين التجاري والصناعي، كما قدم العديد من أوراق العمل في المؤتمرات المتخصصة في مجالي السياحة والترفيه.أسس الشيخ عبد المحسن الحكير، المجموعة عام 1965م، وكانت البداية مدينة ألعاب الملز، ثم توالت مشروعاته الترفيهية الى أن أقام مدينة ألعاب في منطقة الربوة والتي أعتبرت نقلة نوعية في صناعة السياحية والترفيه بالمملكة، بعدها بدأت مشروعاته الكبرى السياحية والترفيهية في النمو، حتى غطت مناطق المملكة كافة والعديد من البلدان الخليجية والعربية.توجت استثمارات الشيخ عبد المحسن إلى المشروعات الفندقية بدءًا من عام 1990م، حتى أصبح يمتلك أكبر سلسلة فنادق ومدن ترفيهية في منطقتي الخليج والشرق الأوسط. وهو عضو في العديد من مجالس السياحية والصناعية الوطنية والمنظمات السياحية والترفيهية العالمية، وهو رئيس لعدد من مجالس الأعمال رجال الأعمال السعودية – العربية، والسعودية الأجنبية المشتركة، وكان قد حصل عام 2008م على وسام الاستحقاق برتبة قائد من الحكومة الإيطالية.والشيخ عبد المحسن له كرسي بحث علمي في جامعة الملك سعود باسم "كرسي الشيخ عبد المحسن الحكير للتغذية وصحة الإنسان".الشيخ من مواليد عام 1944م.

Transcript

  • 1. The Suite Life of Hoteliers:Why am I in hospitality?Badr Al BadrCEO
  • 2. Saudi Hotels and ResortsIn business for 36 yearsAmong oldest publicly listed companiesOwns and manages 20 hotels and compoundsEmploys 1500 people, 20% are SaudiNow undergoing transformation
  • 3. I was successful in Information Technology
  • 4. Sowhy am I in hospitality now?
  • 5. “Hospitality: The friendly andgenerous treatment of guests“ Oxford Dictionary
  • 6. Hospitality goes far into our history
  • 7. Tourism is 2.5% of Saudi GDP and employmentSource (1): http://www.meetmiddleeast.com/articles/show/saudi-hospitality-sector-worth-us32bnSource (2): http://www.wttc.org/site_media/uploads/downloads/saudi_arabia2012.pdfSource (3): http://www.mas.gov.sa
  • 8. The number of visitors is increasingand so is the number of hotel rooms Growth in Hotel Rooms at 57% 381000 242000 Year 2010 2015
  • 9. Hotels aren’t just a shelterThey provide an experience
  • 10. General ManagerSales and Food and Financial Chief Rooms PersonnelMarketing Beverage Controller Engineer How a typical hotel operates
  • 11. Career path: Where is the limit? CEO/Investor General Manager Division ManagerReception
  • 12. Yahya:Associateto Hotel GM
  • 13. Thamer: Night Auditor to Head of Revenue Management
  • 14. Famous Saudi Hotel Investors
  • 15. What does it take to be in hospitality? Personality and attitude Ambition and hard work Education
  • 16. This is why I am in hospitality
  • 17. Be part of fun!