Iraq
to Basra, Baghdad and Erbil in the north but the cost of doing it is significantly more than people think. Flying in is normal and hotel bills are about US$200 a night but the downside is the security needed to travel.”
LIMITED CHOICES Negotiating hotel deals may be a bit tricky, too, as there is limited choice. Omer Kaddouri is chief operating officer of the Rotana hotel chain, which has a property in Erbil. He says: “We are definitely capitalising on business in Erbil: the hotel is running on high occupancy, at very good rates – room nights of around US$290, actually one of highest room rates in our company today. It’s one of the few places where it’s not a buyer’s market.” (see interview, right).
“The whole place is open for business, but there is the old adage that fortune favours the brave”
Rotana aims to be the largest hotel chain in Iraq in the next five or six years and has agreements signed for a property in Baghdad and two more in Erbil – and other international brands are following in its footsteps (see Hotel News, previous page). Even when you have your preferred suppliers in place, doing business in Iraq is something which takes years to understand. After 30 years of war and sanctions, Iraq’s infrastructure has been left devastated and its systems archaic. Gavin Jones of Upper Quartile says:
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“Systems and procedures are Soviet in design, and Iraq can’t handle tendering and the big part of contracts.” Dammann, who speaks seven languages and is learning Arabic, agrees: “Building business up in Iraq takes a long time – it’s much easier if you go in on existing connections or are doing business with an Iraqi company. Electricity is available sometimes, the internet is awful, landline conversations get cut off after about 10 minutes – everyone knows you just hang up and dial again.”
CALCULATED RISKS Negotiating deals, doing business and sending travellers to Iraq seems a daunting process but one which some will always choose. Copperchase’s Myers says: “The
EXCITING TIMES AHEAD
Paul Revel talks to the Rotana hotel group’s chief operating officer, Omer Kaddouri
Omer Kaddouri
How do you see business travel developing in Iraq? The Erbil Rotana has now been open for a year-and- a-half, and it was the first five-star international chain hotel in the country for many, many years. It’s in the semi-autonomous Kurdistan region. Doing business in Erbil is very easy: it’s easily accessible, and there are flights every day with major airlines in the region – Etihad, Qatar Airways, Lufthansa, Royal Jordanian, Austrian Airlines and Turkish Airlines, with more coming on-board. There’s no problem doing business there.
What about other areas of the country? It’s more of a challenge doing business in Baghdad, though, again, there are good flight connections. We’re looking at opening a hotel in Baghdad in mid-2013. There are also many direct flights to Basra from airports in
the region because, oil and gas-wise, Basra is where it’s happening. We don’t have any agreements signed there as yet, but we have signed an agreement on a hotel in Sulaymaniyah, south of Erbil.
Why is Erbil important to you? Our hotel in Erbil is setting standards of hospitality in Iraq. It’s so rewarding to go there and see the Iraqis that have come from a zero-hospitality background, and every time I go back they’re serving better, speaking English better and becoming more friendly and confident – that’s something very special. As we get more and more hotels we can transport that experience across Iraq. It’s rewarding in many ways. The owners are happy, and the government’s happy – the Kurdish government wants to show off Kurdistan,
so they bring delegations to the Rotana, where they get the same five-star service they get in Dubai, Abu Dhabi or anywhere else. The government is looking to encourage more investment. There’s a lot of inward investment, and more hotel chains as well. There are several multinationals signing management agreements for properties in Erbil. We plan to have possibly two more hotels in the city in the next three-to- five years.
What about security? Obviously the safety issue isn’t yet sorted in some areas of Iraq, although this is not an issue in Erbil. But the corporations which are sending their executives to Iraq are doing their homework – it’s fine once you know what’s required in terms of security, and security itself is very big business. And it’s going to get
better. I suppose there’s an element of “no risk, no reward” – and there are big rewards in Iraq. The real pioneers were going into Bagdhad five, six, or even ten years ago. The next five or six years will see Rotana as the largest chain in Iraq, just as we’re strong in the UAE today. It’s exciting times ahead in Iraq.
whole place is open for business but there is the old adage that fortune favours the brave, and you have to weigh up the risks. It’s not like strolling down the local high street. You need to have a trustworthy partner who knows the political scene, and the religious and sectarian issues.”
Dammann adds that while Iraq is evidently dangerous, “there are huge opportunities in infrastructure, rail, oil and gas. What you are dealing with is a developing society and one that has been through war and terror, and security is my biggest concern – but I love the challenge.” ■
MAY/JUNE 2012
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