When one talks about the economic growth of a country, it is debatable to get return more than expected in the hotel industry. As the hotel industry is a portion of the service sector, it is an argumentative issue whether the hotel industry has tremendous impact in accelerating the GDP’s rate of a country’seconomy performance.
There are about a number of hotels in sub-Saharan Africa. Does Africa, particularly, sub-Sahara countries get enough benefits out of the hotel industry in reducing unemployment rate, recognizing localization services and related aspects?
In this regard, The Ethiopian Herald had managed to approach Tejas Shah, Regional Vice-President of Hyatt Hotels. Tejas is Part of Hyatt development team in Africa. He looks after Hyatt Regency Hotel’s growth in the region. And he pursues opportunity in sub- Saharan Africa to gain return. Excerpts:
Herald: What sort of challenges are the east Africa countries facing in developing hotel industry?
Tejas Shah : I think this is great question. There are challenges and plenty opportunities in the region. It is a tremendous growth market. We see a lot of opportunities in terms of delivering our service and our product in the region.
As we speak, we have operational services in Tanzania and here in Addis Ababa. It is the home of first hotel and Hyatt Regency in Addis Ababa. Opportunities and exciting things abound in the region especially in countries like India, Tanzania, and Ethiopia. It has a lot of emphasis on as a growth sector.
These countries have infrastructural implantation. There are plenty of investment opportunities in the activity in this region enabling the improvement of the hotel industry. And Ethiopian airlines are being successful in this regard.
In the implantation of Air transport market, The Africa Union has initiated the program aggressively. There is also connectivity across sub-Saharan Africa. So, we observed the presence of a lot of opportunities. I think there is an economic integration extensively. There is growth in middle class and in doing infrastructural projects. It is a great market to be here in sub- Saharan region.
Herald: How do assess Ethiopia’s attempts to improve the hotel in services?
Tejas Shah : Ethiopia has taken a good initiative in airline service.It facilitates free visa process. It has also improved well in providing permission to enter into the country. There is a targeting mission in the MICE initiative of incentive, conference and exhibition. That has seen a good amount of growth in the region as well. So, it can be just taken a great initiative to improve the hotel service in the region.
Herald: Does the world society give due attention to stepping up the hotel industry?
Tejas Shah : There are steps taken in the right direction. Of course, there is room for investment and infrastructural development. The industry shows a steadily growth. This shows that there is improvement in the hotel service. There is an initiative that has been taken to improve the hotel industry.
Herald: Do you think the growth of the service sector including hotel service has a meaningful impact on the economic development of the country?
Tejas Shah : We come across a tremendous growth market in the hotel service. The hotel industry is about 6 out of 10 fastest growing sector throughout the world and sub- Saharan Africa as well. There would be international tourist arrivals and a steady growth in this regard.
Last year, tourist arrival in Africa almost reached 67 million. It is targeted to grow 4.4 percent for the next 15 years. There is a tremendous growth in tourist influx. If anything the tourism sector is growing faster than the GDP. So there is a tremendous opportunity for the economic development of the country.
Actually, tourism accounts, in many countries, are being in difficult and hardship scenarios. As growth in tourism has created impact on the acceleration of job creations, tourism is a springboard to drive the economy for the better. According to the current statistical data, somewhere growth tourism in Africa will bring 8 million new jobs within 10 years. This is a tremendous leap for every part of the countries.
Herald: What sort of lessons could the east Africa countries get in the hotel sector?
Tejas Shah : It is actually a growing sector. It leads into the market. We would see good quality products coming. To me, our hotel, Hyatt Regency is a great example of the quality of products that enable to deliver for free market. So there is, one will see a lot of growth in the sector.
There had been a lot of growth, locally run or handling other foreign investment. Regarding this, we do new innovation in terms of trying to bring more localization service to our customers. This is a great initiative as well.
Herald: Some scholars claim that mixed-development is instrumental to diversify risk in the hotel service. What do you say in this regard?
Tejas Shah : I could not agree more. In the Mix- used development approach, one will see a lot of development. But, in the planet of Hyatt Regency hotel, we have taken due approaches and developers of the new projects. The hotels, as an example to, play and announced that Hyatt Regency last year, is actually part of mix-development as well.
What we are trying to do, is that through cookie- cutter approach. We focus on developmental based, owner centric or project centric rather than following the footstep and with the outlook of the same boat trend of other hotel agents.
So we see a tremendous growth as you are rightly saying when one comes to hotel investment. We are really proud to take initiative approach with owners and developers to come up with optional solution as well.
Herald : What are the major ingredients in the hotel service to attract local customers and tourists?
Tejas Shah : Great question again. As I pointed out earlier, boosting the level of localization is significant in the hotel services as it allows room for everything the hotel does attract clients.
When I talk about localization, it is not only in cooperating local elements and designs in the hotel, but also trying to localize in using ingredients in the food to local communities to have impact on the society. That are the right initiatives and that is what we do at Hyatt Regency hotel as well.
Herald: In advanced countries, the hotels give full-fledged and compressive services. But here in east Africa region, we are not able to provide full-package hotel services. What are the reasons behind the hurdles?
Tejas Shah : To be very kind with you, I take the Hyatt Regency hotel provide banquettes facilities, international quality center with the spa and fitness center. There are six beverage outlets in the hotel.
Frankly speaking, this hotel provides international standard services. There is localization involved as well. It is catering to the need of international clients. That is again similar to what we do in the region.
Herald: Does your hotel have any contribution in the social welfare activity?
Tejas Shah : In terms of social contribution, we want to work with local communities. When it comes to all aspects of development, for example, menus at the hotel, there are also local clients, locally sourced from suppliers. Majority of the staffers are local as well. We have a lot of training that involves staffers as well.
We, in fact, earlier announced that we started social contribution initiative with water bottle process in such a way that reducing the use single use of plastic. We work on many initiatives on the basis of the community.
Herald: Here in this country, the hotel facilitation service does not recognize local flavor and culture of the country. Do you think is it because you think, due to demand driven market?
Tejas Shah : I would. When it comes to Hyatt Regency here in Addis Ababa, there is tremendous amount of initiative bit in terms of designing menus, working with the community and staffing with employing that are from region as well.
We do try. We have a lot of localization to get to international customers. When one sees the properties inside the hotel, one would see different local designs and plantation in the hotel.
Herald: At last, you are welcome to convey any message.
Tejas Shah : Thank you very much for the opportunity for having met and hosting African Hotel Tourism Forum (AHIF) here in Ethiopia. We are keen to beef-up the growth rate in the region. In the continent, we are looking forward to getting opportunity in ownership status, developers, and franchises segments. We do take development approach in the region. And we want to continue to grow
The Ethiopian Herald Sunday Edition 29 September 2019
BY MEHARI BEYENE
