Dhaka’s Hospitality Industry Gears Up
By Wafiur Rahman
In line with the grandeur of Hotel Intercontinental and Hotel Purbani of the past, the private sector is now responding to the demand of Capital City-intensive hotel industry. Given the success stories in RMG sector and other industries, Dhaka is now seen emerging as a business hub with the rise and success of Westin, Radisson Blu, Amari, Six Seasons Hotel, the consistency of the Pan Pacific, and upcoming chains such as Marriott and Le Meridien.
Everyone is of the opinion that the political impasses of the past years have slowed down the growth of this industry. However, business is about to pick up. This is not only credited towards room rates, but also the modern trends and global benchmarks that the hotels are acknowledging and applying for revenue generation.
With an awful lot of luxury hotels launched within the span of a few decades, Dhaka may look oversaturated. But Shahidullah Azim, Vice President of Bangladesh Garment Manufacturers and Exporters Association, is of the opinion that the ‘more the better’.
‘After the turmoil subsided, more RMG buyers have become interested in coming to Dhaka to hold meetings with prospective manufacturers. Adding to that, other industries are picking up and embassies are giving out positive vibes to their respective countries. It now seems that the number of luxury hotels is not enough to accommodate all of them. If the growth of the economy remains steady, business will be brisk and more hotels will be needed,’ he said.
Hotels, regardless of clichéd bed and breakfast business models, have evolved to incorporate as many stakeholders as possible. This has been possible due to their investment in technology, social media, skilled manpower and more. ‘We have had great support from our owning company,’ said Daniel Muhor, General Manager at The Westin Dhaka, ‘Directed by Md. Noor Ali, we deliver only the best in every aspect – rooms, food and beverage, and services,’ he said.
Emerging Trends in the Hospitality Scene
The modern traveler is by default tech-savvy. Armed with a smartphone, the internet and social media, all they have to do is log on to an online travel agency (OTA) like Expedia, compare rates and book their desired hotels. This preference is also influenced by the social media. Albeit biased and concise, the reviews on Facebook and Trip Advisor are taken more seriously than travel agents. Marketing to the hyper-connected traveler is one of the keys to success.
According to Kelly Lewis, General Manager at Amari Dhaka, Dhaka’s top hotels have picked up on some trends:
• Playing to the crowd – By using the Global Distribution System (GDS), I can get hold of what rates the other hotels are offering. Now I can compare and charge accordingly
• OTA Strategizing – We still have a few travel agencies who make bookings for their customers, but it is now done primarily off our brand website, through ONYX or through an OTA like Expedia
• Mobile Investments – The industry is definitely more about us going to customers and being proactive. By discussing their needs we can show them our commitment
• Racing to the top – By observing the service at other hotels, you can optimise your service levels
Statistics Deficit
According to the 2013 Hotel Industry Report by Bangladesh
Bureau of Statistics, Bangladesh’s hotel industry has seen consistent growth of over 7.5% annually since 2008, fueled by growth of the domestic middle class and the high rate of GDP growth. The sector’s contribution to the country’s GDP was $924 million in FY 2011-12, and $843 million in the FY 2010-11. However, this figure has yet to reach more than 1% of GDP.
Tourism plays a big role in the hotel business and during the Strategic Scenario Planning for the Tourism and Hospitality Sector Workshop organised by the ILO, EU and the Government of Bangladesh, concerns were raised on data authenticity.
Shahabuddin Ahmad, Travel World Editor, said that the data of the tourist arrivals prepared by the Home Affairs Ministry of Bangladesh is inconsistent and that there is barely any data on how Bangladesh will be able to forward accurate data for statistical purposes towards WTTC (World Travel and Tourism Council) and UNWTO (United Nations World Tourism Organization). He also said that BBS (Bangladesh Bureau of Statistics) always provides two or three-year old data. This has led WTTC and UNWTO to identify a lot of discrepancies such as miscalculations and misinterpretations.
Shahid Hamid, Dhaka Regency’s Executive Director, was one of the participants of the workshop. He revealed he never knew the exact number or even the approximate number of hotels, motels, restaurants and staffs that exist in the country. The updated and reliable data will now allow him to create effective strategic plans, which are vital in the tourism industry.
But aside from those concerns, the outlook is positive including the demand for more than 40,000 skilled workers for hotels. The demand for skilled workers will also call for the demand towards establishing more training institutes that will hone and develop the skills of potential employees.
New hotels, new dimensions
In the 1980s and 1990s influx of guesthouses and small hotels in the private sector, a qualitative change in the availability of accommodations took place. The city now has over 400 air-conditioned fully facilitated rooms in several small hotels.
Boutique hotels such as Best Western Maple Leaf, Lake Shore, etc, stand as stiff competitions for the top-tier hotels. Although smaller in size, their dedication to the service remains immaculate.
With changing times, hotels are starting to differ from each other. Six Seasons Hotel in Gulshan is fast arousing interest among customers. ‘We are a 5-star boutique hotel, and a highly personalized one,’ says Ryszard Majewski, General Manager, ‘I feel that Six Seasons follows a basic fundamental of running a hotel. Because of the quality, our food and banquet services are highly sought after, so it is safe to say that we are the best boutique hotel in Dhaka today.’
Not just for staying anymore
With the introduction of health clubs, wellness programs, outdoor activities, etc. – hotels are now engaged with their guests in a more dynamic level. But they have also taken the extra mile to delve into business development and tap into the potentials of MICE (Meetings, Incentives, Conferencing and Exhibitions). General meeting of companies, press briefings, weddings, cultural themed occasions, etc – all these are now revenue generators. People flock to luxury hotels for celebrating Pohela Boishakh and Eid days, as part of the status quo.
‘Cultural festivals are integral timeframes in Bangladesh, and we do try to accommodate them in a contemporary manner but with a local twist.’ Daniel Muhor.
All Day Dining – A Big Hit
Generally buffets are not supposed to be a combination for fine dining and corporate meetings, but restaurants are constantly changing their setup in order to successfully cater to the dynamic needs of their clientele. The Westin’s Seasonal Tastes’ meeting room service is one such example.
The rooftop dining experience also definitely appeals to guests. Dhaka Regency’s Grill on the Skyline is a huge hit among clients, as are rooftop restaurants from other luxury hotels, like Terra Bistro and Platinum Terrace.
Challenges thus far
Pricing is vital. Ryszard Majewski observed that pricing needs to be relooked since it is very high if compared globally. ‘People are coming to stay for certain periods throughout the year. A good hotel maintains maximum occupancy for every month of the year. I believe different projects and plans need to be made for slow seasons.’
He also pointed to the lack of a proper training school for hospitality aspirants. ‘If that can be formed soon, then they can train future and potential hoteliers in all sectors. We lose skilled workers to foreign competitors quite often. We need to reconfigure staff salary structures to make the workforce more effective and stop this skill drainage.’
The demand for skilled manpower is rising and almost 40,000 skilled staff will be needed by 2016. Yet no entrepreneur is investing in developing human resources for hotels.
Despite Bangladesh’s tourism and business potential, no effort has been made to take advantage of that. The government must initiate measures to promote Bangladesh globally.
Most importantly, the government should substantially reduce taxes on hotels. For the first time private sector is experiencing success in these capital-intensive ventures and the government should provide adequate incentives to encourage private investors.
Sticking to basics
As long as a hotel has a comfortable bed, sumptuous room service/all day dining facilities, impeccable service and cleanliness, guest retention becomes easy. ‘All in all, the hospitality industry has its bright years ahead,’ said Muhor, ‘This will continue to grow till 2020.’ One can only hope that more hotels will create a level playing field for competition among the luxury hotels. The economy of Bangladesh will benefit greatly from this.
Amari
Conveniently located in Gulshan, Amari is in close proximity to a number of multinational companies, office complexes, foreign embassies and the capital’s popular attractions.
• 134 guest rooms and suites
• Free Wi-Fi
• 40 inch LED TVs per room
• Rain showers
• Mini bars
• Four separate event spaces
The Westin
Located in the heart of Dhaka’s growing business and diplomatic district Gulshan, The Westin Dhaka is only 20 minutes away from Hazrat Shahjalal International Airport.
• 235 Guest rooms
• 24 suites
• Expansive event spaces
• Fitness facilities
• A heated outdoor pool
Six Seasons Hotel
Six Seasons Hotel is conveniently located near the centre of Dhaka. The hotel has much to offer including but not limited to:
• Spa and wellness center
• Outdoor swimming pool with bar
• Free Wi-Fi
• Laundry and dry cleaning facilities
• Paid shuttle service
• Two restaurants and a cafe
Radisson Blu
Just a 10-minute drive from the Hazrat Shahjalal International Airport, Radisson stands on 7 acres of lush gardens.
• High speed internet
• Pools
• Suites
• Health Club
• Room Service
Article published in ICEBusinessTimes
