The Business of Luxury

By Julian Rogers, Deputy Editor

The hospitality industry in the Middle East is booming – none more so than in Dubai where Jumeirah is the home-grown king of luxury resorts. But bold and extravagant expansion plans are in the pipeline as this precocious group matures into a truly global brand, as Marco Nijhof, SVP for the Middle East, Africa and South Asia explains.

“In Dubai I believe there are 50,000 new residents arriving per month - an unbelievable statistic. And Dubai as a destination keeps coming up with new attractions and development with its out-of-the-box thinking”
-Marco Nijhof, Jumeirah

For a man charged with overseeing the smooth running of some of the world’s most extravagant hotels, Marco Nijhof is in a jovial and relaxed mode when we meet in the lobby of the Burj Al Arab hotel. His diary is chocker block full of meetings and people to see, but as we sit down for his first meeting of the day, he’s still smiling. “It’s certainly given me some more grey hairs,” he jokes.

This is an exciting period for the 48-year-old Dutchman as the group’s wealthy backers forge ahead with their grand vision to increase Jumeirah’s stable of luxury resorts across the Middle East to 23 by 2011 (60 in total worldwide by 2012). Jumeirah currently manages 11 hotels, including eight in Dubai. “This is a major goal when you consider that we only had a handful of hotels a few years ago,” Nijhof enthuses. In fact, he says the group would like one day to have a presence in all countries throughout the Middle East.

“The growth that we are seeing in the Middle East is fantastic but the potential is enormous and we are growing in Asia, Europe and the Americas. It’s a great situation to be in.”

Although the hotel chain only opened its first hotel in 1997, the group has since burst forth as one of the world’s most recognised Arab brands. And with hotels in London and New York, as well as properties earmarked for China, Bermuda and Europe, Jumeirah is muscling in on the turf of global five-star players like the Ritz Carlton and the Four Seasons chains.

Home champion

However, it’s in Dubai – the birthplace of Jumeirah’s first hotel ( Dubai’s Jumeirah Beach Hotel) – that the business is most recognised for its stylish and iconic hotels; none more so than the 321-metre high all-suite Burj Al Arab.

This unique hotel is synonymous with sumptuous surroundings and first class service and facilities, says Nijhof, who has worked at some of the world’s finest hotels and resorts during his career. “When you have a hotel of this nature and calibre, everything revolves around the attention to detail and the focus on your customers.” He says the sheer number of staff make a crucial difference. “We have around eight staff per suite in the Burj Al Arab, which is unheard of. In Europe it might be 0.7 per room. So I would say that this hotel is made very special because of the people who work there. And, of course, we spend an extraordinary amount of time and effort training our employees.”

The extravagant hotel is known the world over for its distinctive sail-shaped design, opulent interior and first-class restaurants. The Burj Al Arab also whisks you to and from the airport in a chauffeur-driven Rolls Royce. And as Nijhof remarks, not many hotels in the world have a helipad on the roof for the ultimate in luxury transfers. He says it sees no shortage of demand. “I was in the swimming pool with my children the other day when we spotted one helicopter landing and two in the air waiting to land but unfortunately I didn’t have my camera. That was an unbelievable sight.”

A significant number of the customers arriving by helicopter, as well by slightly less glamorous means, are on business or holiday from Europe, Russia and Asia, while Americans are increasingly making the long-haul trip to bask in the year-round sunshine. And, of course, the Burj Al Arab attracts its fair share of Middle Eastern guests. This is also the case for Jumeirah’s other hotels. “We have a fantastic customer base that comes from a truly international market.” Nijhof comments. “What they expect is great service, a great product and friendly people and this is what we are able to provide our guests.”

Nijhof says rapidly growing airlines like Emirates and Etihad Airways help to raise the profile of Dubai, as well offering excellent service levels. New routes are bringing increasing numbers of visitors to the emirate to sample what it has to offer. The experience is what brings guests back, says Nijhof passionately. “We have guests staying at the Jumeirah Emirates Towers Hotel (located in the heart of Dubai’s commercial district) who have come for the 48th time. It’s the same at Jumeirah Beach Hotel. The repeat booking rate there is very high too – we find that people come to stay for Christmas and immediately book for Easter. You can only achieve this if you have good products and fantastic service. This is where we can make a difference.”

Ambitious goals

Jumeirah’s vision to turn the group into a recognised global brand relects the Dubai government’s determination to transform the emirate into a premier tourist and business destination. The developments that currently exist (as well as those on the drawing board) are mind blowing. This creates a great opportunity for Jumeirah and Dubai as a whole. “We truly believe that the vision that the government has put forward is working,” Nijhof muses. “The Middle East is where most aeroplanes are sold today. The Middle East is where most hotels are being developed today. In Dubai I believe there are 50,000 new residents arriving per month – an unbelievable statistic. And Dubai as a destination keeps coming up with new attractions and developments with its out of the box thinking.” He adds that the vision is all about creating new and different products – not only from a tourist point of view but also in terms of investment opportunities. “Whether it is Education City, Media City, Healthcare City or Internet City, there are so many initiatives that are taking place in order to bring new customers. That won’t stop; Dubai will keep developing different things which are essential to the growth of the emirate.” Nijhof describes the government’s support of new projects and initiatives as “exemplary” and says that it is keen to see new businesses being set up and allowed to develop.

However, Dubai’s drive for greatness will create competition for Jumeirah. Just look at the stunning Atlantis resort and flagship development on The Palm, Jumeirah: it is up there with the world’s very best hotels but Nijhof is unperturbed about it affecting business. “When the Atlantis opens what will it do? It will bring more visitors to Dubai. It won’t take business away from us because it is actually catering for a new market within Dubai.”

Another potential threat to bookings is the knock-on effect of the credit crunch and economic slowdown that is gripping the US and Europe. On the face of it the hospitality industry in the Middle East, appears unaffected but is Nijhof panicking? “There may be an economic recession or downturn in Europe and the US but look at the Middle East: nothing whatsoever is happening in terms of recession.” So is Nijhof ignoring the economic worries elsewhere and the potential impact? “No. I would be a silly businessman if I did. We are keeping a very close track of it but we are still experiencing double-digit growth figures over last year,” he acknowledges proudly. “I am not as pessimistic as the Western world.”

Vision

This optimism is reflected in the group’s impressive plans to fatten its global portfolio over the next few years, For instance, it plans to open its first resort and spa in Europe’s Port Soller while a third London hotel on the banks of River Thames is on the cards. Plans are also afoot for resorts in Thailand, the Maldives, Mexico, the US and the Caribbean. Asia too is looking to be hot growth area (the group’s first hotel in China will be opened soon) while future projects will include mixed residential developments under the Jumeirah Living brand. It’s reported that staff numbers will mushroom from 11,000 to around 55,000 to cope with the expansion effort. “We are very ambitious with our goals because we are not purely a Middle Eastern company,” Nijhof remarks.

Nijhof says he believes Jumeirah is playing a major role in raising Dubai’s profile as a global tourism destination: “It’s about keeping Dubai up there with London, Paris, Singapore and so on. And it’s working because we still see very good growth levels this year compared to 12 months ago.” He adds: “The economic force of Dubai is very important for the well being of the country.”

As our interview draws to close, I am keen to discover what gives this hotel boss the most satisfaction from his role. After all, there are worse hotel chains to be in charge of. A smile develops. “I love to spend time with managers to see how they grow and take on greater levels of responsibility,” he responds. “It’s great to see that you can make a contribution to somebody’s life and their career. It’s extremely rewarding.” As is, no doubt, the opportunity to spend his working days in some of the world’s most luxurious hotels.