Islamic hotels spread beyond Gulf

Demand for Shariah-compliant accommodation is on the rise and currently represents 10% of the world tourism market, according to Abdulla Almulla, chairman of Dubai-based Almulla Hospitality.

Speaking at the Arabian Hotel Investment Conference, Almulla said his firm plans to have an international chain of 150 Shariah-compliant hotels by 2015, with up to 90 of them located in the Middle East and North Africa.

High-growth market

The market for Shariah-compliant hotels is expanding in line with the growth in the number of Arab tourists. Travellers from the GCC spend over $12bn annually on leisure travel, according to the World Tourism Organisation. UAE travellers spend an average of $1,700 per vacation, which is $500 higher than the European average.

Almulla aims to establish a brand identity that Muslim travellers will recognise and trust. Some hotels categorise themselves as Islamic but are not Shariah-compliant, he noted, citing one example in which a 'dry' hotel served non-alcoholic drinks at a 'juice bar'. 'We would not call it a 'bar' because that word should not be used at a Shariah-compliant hotel,' he said.

International guidelines

No international guidelines have been developed that establish uniform standards for Shariah-compliant hotels. At a minimum, these hotels ban alcohol, gambling, and lewd movies, and serve only Halal food. But subtle differences may exist.

For its part, Almulla's hotel chain will follow guidelines established by its board of Islamic experts. 'International standards for Islamic hotels will evolve in the next 10 years,' he predicted.

Shariah-compliant hotels will eventually gain a foothold with non-Muslim tourists, he believes, but it will take time to convince them that they will be getting the same level of service and that the quality of the product will not suffer. He says his hotels will appeal to non-Muslims because of their socially-responsible culture and their quiet, family-friendly atmosphere.

Shaza seeks slice of market

Another hotel chain that aims to grab a lion's share of the Arab travel market is the recently launched Shaza Hotels, which was formed via a partnership between Kempinski, Europe's oldest luxury hotel brand, and international financial firm Guidance Financial Group, said Christopher Hartley, Shaza's chief executive.

Hartley believes there is an undersupply of hotels in the regional hotel market that cater to Arab tourists. 'Most travellers in the Middle East are intraregional travellers,' he noted. 'We want to create a product that reflects the needs, values, and interests of these travellers.'

The company aims to attract non-Muslim visitors by offering them something unique. 'There is a saturation of brands in the hotel market,' Hartley said. 'We want to create a product that differentiates itself.'

Being Shariah-compliant is just one aspect of what Shaza Hotels will offer. 'Shariah-compliant hotels are a new concept, but Arab hospitality is thousands of years old,' Hartley noted. 'The hospitality industry is about welcoming people, and Arabs do that very well.'

In addition to planning a number of hotels for the Gulf, Shaza is opening a hotel in Geneva, one of the most popular destinations in Europe for travellers from the Middle East.

'We believe the market is right for this kind of hotel. Our hotel will immerse guests in Arabian culture and we will have food concepts that will attract the average person in Geneva,' he said.

Making profits without alcohol

Commenting on whether a Shariah-compliant hotel can be profitable without serving alcohol, Hartley said most of a hotel's profit comes from its rooms division. 'Food and beverage service often doesn't make much money because the margins are low and it is labour intensive,' he noted.

The key is to give guests an experience that they cannot have elsewhere. 'At the moment, the high-priced Japanese restaurant Zuma is the hottest product in London because it offers a unique cultural experience,' Hartley said. 'There is no reason why our hotels can't be just as successful.'

See also:
The Middle East's ultra luxury hotels
Islamic hotel review: The Tamani Dubai