Booming hospitality Industry

Bullish about growth in the hospitality business, Avari Group of Companies that owns Avari Towers in Karachi is launching five new hotels in different cities of Pakistan during next 18 months to capitalize on the gains the industry has witnessed on the back of improvement in the country’s security situation.

Established in 1944, the Karachi-based hotel chain, which also owns Beach Luxury Hotel in Karachi, Avari Lahore, Avari Dubai and two relatively smaller hotels in Islamabad is opening the  first of these five hotels namely Avari Xpress in Faisalabad, Avari Towers’ General Manager Erik Huyer told Profit while unveiling their expansion plans for the next couple of years.

The GM did not share the details regarding the location of the other four hotels and how much the company is investing to set up these new hotels. However, market sources say at least one of these hotels will be opened in the federal capital.

The development comes at a time when the country’s overall security situation has improved while economic activities are on the rise especially those related to China Pakistan Economic Corridor (CPEC) projects.

According to Global Terrorism Index (GTI), Pakistan witnessed the third largest decline in terrorism worldwide in 2015. Target killing which was major cause of unrest in the port city decreased by 43 percent in 2015.

On the other hand, businessmen and foreign delegates are frequently visiting Pakistan in connection with projects in the power sector, gas exploration and harbor construction boosting demand for hotels thus helping the hospitality industry.

Erik, who took charge as GM in October 2015, says he sees an excellent impact of CPEC on the hotel business because business delegates from both private and public sector including officials from the Chinese government are visiting Pakistan and staying in their hotels.

“The business at Avari Towers Hotel is very positive. We are busy all year,” Erik says.

The statistics of hotel industry, perhaps, explain that further. Hotel occupancy rate has inclined to 80 percent in 2016 compared with 35 percent in 2015, according to a recent report, which quoted Rehan Wahid, Director Business Development at Beach Luxury Hotel.

Breaking down business details, Erik said 80 percent of the hotel clientele is from the business community or employees of government institutions but other people like leisure travelers, group travelers and honeymoon couples also give them business.

“We always keep some reason for clients to come back like new food or booking offers,” Erick says about his business strategy, which comes at the back of a long experience in the hospitality industry.

For a man who has worked for about half a dozen renowned hotels including Sheraton (Darwin and Perth, Australia), Rosewood Hotels USA (KSA) and Duxton Hotels (Vietnam & Philippines), he understands the hotel industry inside out. His entire experience has been in this sector working in various departments all the way up to the top. He started his job as a management trainee at Sydney Hilton Hotel in 1974. “With this position, I worked in every department of the hotel such as the kitchen, restaurants, housekeeping, laundry, stewarding, front office, finance, sales, conference and banqueting etc,” he said describing his experience at Sydney Hilton.

This experience is coming in handy at a time when Pakistan is witnessing an increase tourism, particularly on the local front, which is helping hotel industry’s growth.

PIA has inducted new planes likewise international airlines like Qatar Airways, Emirates and Etihad Airways are expanding their operations for Pakistan-bound passengers while a new airline namely Serene Air has also announced to launch operation in the country to tap into this growing market segment.

One can find more foreigners on Pakistan-bound flights now than there were a few years ago, and statistics from hotel industry also indicate a similar trend.

Erik says 40 percent occupancy is by foreigners, among whom Chinese, Korean and Japanese are the most visiting tourists. The GMsees great opportunity tourism in the country, which has a rich history that can attract foreign tourists if Pakistan markets itself the right way like organizing travel shows and publishing travel magazines because “every picture tells a story”.

“Pakistani food is not boring, every area of the country has its own style of food,” Erik says of Pakistani food, which he thinks is another attraction that can make his clients revisit the country — there is a reason why every large hotel has those fancy buffets displaying a variety of local cuisines.

Due to the diversity in food Avari changes it menu every week to accommodate the different styles of cooking in Pakistani cuisine. In Karachi, Avari enjoys a major portion of catering orders and most of the consulates come here for their national day celebrations.

Erik’s knowledge about Pakistan’s culture and history is linked with the time he spent as a child in the country. He spent his childhood here due to his father’s job with Philips Pakistan. “My father was the one who introduced TV to Pakistan and my family was first European family to appear on TV,” he recalls.

Erik Huyer sees a great future for Pakistan’s hospitality industry and says good human resource is coming in the industry from schools like COTHM and PITHM which offer education in hotel management. “We are getting young people who understand hotel business.”

Erik divides tourist into two types, adventurists and the other type who want luxury hotels for a quality experience and comfortable stay. “Backpackers don’t care about five star bathrooms,” but any improvement in hotels in the northern areas of Pakistan can attract the second type towards the country”..

“It is necessary to be doing right thing every time in hotel business,” Erik says in the light of his experience. “Once the customer is unhappy, he is gone and we will not be able to bring him back”.