GULF REGION HOTELIERS need to look farther afield for their clientele if they are to avoid a potential crisis, the Great Hotels Organisation (GHO) has warned.
Debora Maloney, GHO's director of business development, warns that the Middle East hospitality bubble could burst if hoteliers continue to rely so heavily on intra-regional markets.
Aiming her remarks at delegates to this month's Arabian Travel Market, Maloney warned that the construction boom will eventually bring down average occupancy levels, while inflation in many parts of the region will push costs higher.
The business development boss argues that unless hotels extend their reach - for example, by joining an organisation such as hers - they will end up targeting a shallower pool of guests, but having to charge higher prices.
"It is possible for hotels to protect themselves against any potential downturn in profits," says Maloney, "but it is important that they act now. The key will be for hotels to act early to open themselves up to the international marketplace, so that any lost guests from the GCC countries can be replaced by international travellers."