Live Love Lebanon has been the country’s slogan for the past year, promoting Lebanon as a welcoming destination with a diverse product that satisfies the preferences of various sectors from sun-seekers to religious travellers and from MICE organisers to nature lovers.
In 2015, some 1.4 million visitors flocked into the country and Euromonitor International expects this number to rise to 1.44 million this year as Lebanon continues to leverage its plethora of attractions and strong appeal among both regional as well as European travellers – and, nevertheless, as industry stakeholders amplify their efforts to better adapt to shifting market trends.
Francois Galoisy, general manager, Radisson Blu Martinez Hotel, Beirut, cited STR Global’s report that showed a 5.9 percent year-on-year increase in RevPAR in Beirut, adding that the encouraging signs came amid changing market trends with leisure demand dropping and business volumes rising, and with feeder markets transferring and broadening beyond the Arabian Peninsula.
“Since 2011, and due to the [situation in Syria], the main feeder market, the GCC has started to decrease year by year, and the market has began to shift to the Iraqi, Egyptian and Turkish segments,” elucidated Mohamad Zein, director of sales, Four Points by Sheraton Le Verdun.
Recent travel bans from nearby countries have accelerated the conversion of the country’s client base, noted Hartmut Grauel, general manager, Coral Beirut Al Hamra Hotel, disclosing that this has led to an 80 percent drop in GCC volumes.
As Georges Ojeil, general manager, Le Gray Beirut, explained, this change in dynamics has led to a shift in the GCC to international guest ratio, subsequently reducing the Lebanese tourism industry’s dependence on Gulf states.
In turn, European segments have shown greater interest in the destination, said Ojeil, listing the Levant, especially Jordan along with Egypt among the most buzzing up and coming divisions.
As Maria Bou Eid, hotel manager, SAIFI Suites, elaborated, although the Gulf region has always been among the property’s top 20 markets, due to the circumstances, hoteliers refrained from building their strategy solely on this sector.
On the other hand, markets such as Australia, the UK, Germany and Canada are now rising remarkably and interest is also gradually picking up from the Netherlands and Belgium, creating a broader clientele base.
In addition, as Cynthia Flouty, director of sales and marketing, Crowne Plaza Beirut, noted, Lebanese expatriates continue to contribute a large share to the pie.
Although markets such as Turkey, Iran or even Russia have shown great potential, to ensure a healthy guest mix, actively engaging with a wider pool of potential guests is crucial, stressed Peter Edholm, cluster director, sales and marketing, InterContinental Phoenicia Hotel and Le Vendôme Beirut.
“Beirut is a vibrant city, however, the many positive sides of Lebanon and its hospitality often remain unseen and in the shadow of the current issues,” affirmed Edholm.
WINNING STRATEGIES
In parallel with recent trends, Yasmine Eid Maalouf, general manager, Ramada Beirut – Downtown, reported remarkable increases of 56 percent and 14 percent from Europe and Africa, respectively, admitting that in order to weather challenges and maintain a positive gross operating profit, average room rates have suffered in favour of higher occupancy levels.
“Due to the many changes, we have had to constantly change our rates selling strategy, [conduct] sales trips to emerging markets, generate business volume with medium prices and increase benefits in a bid to face challenges and local competition,” disclosed Eid Maalouf.
As Flouty put it, “Lebanon is a volatile market, therefore, we have to be proactive and adjust our strategies accordingly. We need to act fast, otherwise we will lose business.”
Among the measures taken, Grauel mentioned daily monitoring of selling rates and specific promotions in key feeder markets, while also keeping a close eye on controlling expenses in a smart manner.
In fact, similar approaches have been applied at most establishments and businesses due to the fact that, as Bou Eid highlighted, Lebanese tourism stakeholders have been competing for a fair share of a smaller cake.
As a result, as Bou Eid revealed, SAIFI Suites’ management for example chose to offer more competitive rates, especially for the corporate segment which, due to the cancellation and delay of several projects, significantly cut back on travel related expenses.
With guests opting for more affordable options – while still expecting high level of services in turn – hoteliers have been prompted to step up their efforts to better position their properties in line with current guest preferences and promote it accordingly.
The decline in business travel has posed a particular challenge for extended-stay accommodation establishments.
Nevertheless, as Samia Dagher, sales executive, Staybridge Suites Beirut, revealed, by catering to a versatile nationality mix, with a keen focus on long-stayers, the hotel was able to maintain performance levels and, more than that, generate a steady increase in its corporate portfolio.
Moving with times and remaining creative is indeed crucial, underlined Pasquale Baiguera, general manager, Mövenpick Hotel Beirut.
“We want to be perceived as being easy to do business with. We always strive to offer a solution to our guest requests,” said Baiguera.
“Our main focus has and will also be to achieve the highest customer satisfaction. We strongly believe that now more than ever before, it is very critical that [at all levels] of the organisation we remain committed to making sure that every guest […] has a memorable experience to talk about when he returns home.”
Likewise, travel agents and tour operators have also adjusted to the situation with Elie Nammour, marketing director, Belair Travel & Tourism, suggesting that in order to successfully navigate through current tides and currents, being flexible and diversifying products to cater to smaller and specialised niche demand have proven pivotal.
As Aline Ghanem, managing director, Exclusive Services Group, indicated, given the current fluctuation in demand, tourism professionals have learned to be on standby, ready to act on last-minute bookings especially from the corporate segment.
Similar sentiments have been echoed by Ojeil who stressed, “Adopting situational leadership is of capital importance when managing hotels within an agitated sociopolitical context. […] Rational management should always balance between the impact of cost saving and the guest experience; any potential momentary saving could lead to greater losses in the long run.”
TURNING THE CORNER
“Lebanon is well-known for its excellent customer care and services across the region.
[…] I think the coming months will be better because Lebanon is safer […].
As for the first months of the year, results were good, actually, better than expected,” reported Teddy Aouad, operations manager, Three O Nine Urban House.
Fuelling the optimism, new properties are set to emerge on Lebanon’s horizon, such as the 153-key Kempinski Summerland Hotel & Resort Beirut, hailed as the first luxury resort to open in the heart of the capital.
Slated to be unveiled this summer, the property will feature a labyrinth of pools, a private marina and various water sport activities, among more.
As Dagmar Symes, general manager, Kempinski Summerland Hotel & Resort Beirut, explained, despite the resort feeling, the new address will be equally attractive for business travellers as well as for conferences and meetings.
“Being the first luxury hotel opening in six years, the launch of out hotel has created job opportunities for the local market and given hope for the Lebanese tourism sector,” added Symes.
Also coming up on June 01 – with the grand opening scheduled for July 01 – Royal Tulip Achrafieh will further elevate the luxury travel experience in the city. Besides 76 rooms and suites, a restaurant, roof-top lounge and two meeting rooms will be also available.
As Nicolas Anghelopoulos, general manager, Royal Tulip Achrafieh, revealed, Golden Tulip MENA’s first five-star project in Lebanon is set to boost demand and corporate business in the area, while also further enhancing the destination’s touristic appeal.
Speaking of the encouraging signs, Anghelopoulos praised the investors who have shown their strong belief in the Lebanese tourism industry even amid the most challenging times.
Regardless of circumstances, Lebanon always delivers, affirmed Edholm, saying that, therefore, it is even more important to turn first time visitors into ambassadors of the country.
“Being a landmark [of the destination], we feel responsible to showcase a more positive image of this beautiful country […] and we have launched the #SeeLebanonForYourself initiative to highlight the beauty of Lebanon through high quality images,” gave a pinch of positivism Edholm.
Industry stakeholders indeed remain bullish of the future with Ojeil saying that the country has already proven successful in regaining its position on the tourism map in no time and once the situation is resolved, the sector will switch from its current survival mode into a new gear.
“We need to constantly promote Lebanon as a destination for leisure, business and medical tourism as well as culinary experiences,” encouraged a collective effort Ojeil.
Lebanon indeed has a plethora of attractions and activities, existing and potential visitors, however, need to be reminded of these, underlined Galoisy, saying that acting according to the situation is crucial, and the uplift of sanctions on Iran, for example, gives Lebanese tourism a window of opportunity to tap into this fast-growing segment.
Zein also counts on the Ministry of Tourism to launch a comprehensive marketing campaign in all countries with high potential in order to showcase all that Lebanon has to offer.
This idea was also supported by Eid Maalouf who also called for fixed prices in each hotel category to protect consumer rights and fuel demand and on national airlines to offer competitive fares.
Nammour concurred that carriers can play a paramount role in reviving tourism by teaming up with accommodation establishments. Backed by financial institutions and commercial hubs, this could lead to attractive packages and promotional endeavours in innovative channels, he said.
Nonetheless, safety and security are the key words, underlined Bou Eid, saying that other than that, Lebanon has never needed major protocols or operational contingency plans, and in order to restore the destination’s glory, developments should be implemented on country level, rather than just within the tourism scene.
“We have the best hotels in the world with multi-classification levels. We have the highest [level of] hospitality services and multiple activities available catering to all kinds of interest,” asserted Bou Eid, saying that as the hospitality sector is already at the highest standards, the country now needs to match these levels.
Expressing a positive sentiment for the future, Nammour concluded, “Lebanon is a resilient destination and it has a major expertise in tackling tide waves […]
