Marriott aims for bigger slice of gulf tourism market

Dubai has evolved considerably since Marriott opened its first hotel in the emirate in 1993, said company chairman J.W. 'Bill' Marriott at the Global Travel & Tourism Summit in Dubai.

He attributed the emirate's success to the Maktoub family, with their vision of: 'If you build it, they will come'.

Marriott currently has five hotels in Dubai, and 15 more will open in the UAE within two years. The company is also expanding globally, with nearly 40,000 rooms and 150 properties in development. However, the recent economic crisis is a concern.

US slowdown causing 'pain'

Commenting on the slowdown in the US economy, Marriott predicted that there will be some 'pain' in the US market, adding that the economic downturn is a 'challenge'.

Many factors are contributing to the sluggish economy, including the high price of oil, which is forcing airlines to cut back on flights and raise ticket prices. These measures have a direct impact on hotel revenues. 'Whenever airlines sneeze those of us in the hotel business catch a cold,' he said.

But things will turn around eventually, Marriott insisted. He noted that just a few years ago the industry was wondering if it would ever recover from the 9/11 attacks. In difficult times, the travel and tourism industry needs to be resourceful and 'think outside the box' in order to be successful.

US elections

Regarding the US presidential election, Marriott said he believes 'everyone would like to see a change'.

One policy area that he would like the US government to address is the system for processing visas. He believes the lengthy delays involved in issuing visas are making it more difficult for people to travel and are therefore harming the industry's bottom line.

Marriott also said that the Department of Homeland Security needs to conduct its security checks in a more hospitable way. 'Metal detectors and bomb scanning machines aren't going away. The US has to do a better job of putting out the welcoming mat,' he said.

He pointed out that 34.5 million Chinese travelled abroad in 2006 to places like France, Australia, and Singapore. However, only 1% of Chinese travellers visited the US.

Overall, the US share of overseas travel has fallen 8% since 2000, while rising by 28% in the rest of the world. 'The pie is growing, and the US is getting a smaller piece of the pie,' he noted.

Rapid growth in Middle East

Marriott has signed a number of new agreements that will more than double its hotels in the region. In Egypt, the hotel chain is partnering with Concord for Tourist Development on a 250-room Marriott resort in Marsa Alam that will open in 2011.

In Saudi Arabia, the company is opening five properties with Fawaz Abdu Aziz Alhokair & Associates, including a 250-room Marriott hotel and a 50-unit Marriott Executive Apartments in Damman, a 250-room Ritz-Carlton hotel in Riyadh, and a 220-room hotel in Jubail.

In the UAE, Marriott is partnering with Aldar Properties to develop a 411-room Renaissance hotel and 195-room Courtyard hotel in Abu Dhabi. It has also signed a joint venture with Al Futtaim Group to open a 320-unit Marriott Vacation Club International resort in Dubai Festival City.

Conservation plans

The chairman also touted Marriott's ambitious new project to offset the company's carbon footprint. The firm is partnering with the Brazilian State of Amazonas to preserve and protect 1.4 million acres of the Amazon Rainforest.

To reduce and offset its global environmental footprint, which it has calculated at 2.9 million metric tons of carbon dioxide emissions a year, the company has developed a five-point strategy with Conservation International, a global conservation organization.

The strategy includes reducing fuel and water consumption, encouraging its vendors to supply price-neutral greener products, empowering hotel developers to construct green buildings, and educate employees on how to support the environment.

As part of this initiative, the company has announced that it will annually purchase 47 million BIC pens, specifically designed for Marriott, that are made from pre-consumer recycled plastic.