Catering for the holy month

Analysis Hoteliers remain optimistic that the holy month will be good for business during a particularly tough year for the hospitality industry.

The Ramadan season, which begins later this month, presents the region's hotels with an opportunity and a challenge.

The month-long religious period of Ramadan, in which people largely refrain from eating and drinking during daylight, could easily be a worrying time of losses for hotels. But hoteliers remain optimistic that special room rates and iftars - the sumptuous evening buffets that break the day's fasting - will help business and boost sales in a particularly challenging year for UAE hotels. "Ramadan more so than ever is about hospitality," says Tom Rowntree, the commercial vice president at InterContinental for Middle East and Africa. "Because the hotels are at the heart of hospitality, they become an attractive venue for the hospitality that comes with Ramadan, so our hotels become very busy." The Ramadan season, which begins later this month, presents the region's hotels with an opportunity and a challenge. Just before the holy month begins, hotels rely on business from travelling Gulf residents. As these visitors go home, the hotels empty. "Business changes," Mr Rowntree says. "There's a different demand for the hotels and style of entertainment, so the entertainment that is taking place will be large groups." Although hotels are very quiet during the day, the activity picks up after sunset, when the iftars begin. Many hotels set up special Ramadan tents for the occasion. Iftar is followed by the suhoor, a light meal at midnight that often takes place in the Ramadan tent. In between the two meals, people sit in the tents playing backgammon and smoking shisha. "Hotels have been very active during the past few years in weathering the impact of Ramadan through promotional offers, as well as the organisation of Ramadan-style food and beverage events," says Chiheb Ben-Mahmoud, the senior vice president at Jones Lang LaSalle MENA. And while business travel is slow, companies often use iftars as an opportunity to assemble clients and employees in a less formal atmosphere. Mr Rowntree says he "remains optimistic about a positive Ramadan this year", even as he and other hoteliers face more competition as a number of hotels have opened in Dubai. Hotels are already actively promoting their iftar deals. The buffets are normally priced at between Dh150 (US$40.83) and Dh180. At the higher end of the scale, the Burj Al Arab is charging Dh290 a head for a traditional Arabic buffet at Al Iwan, an international iftar buffet at Bab Al Yam or an Asian iftar buffet at Junsui. Hoteliers are also seeking ways to fill rooms, especially those in the city centre, which suffer lower occupancy levels during this time than beach hotels. "Ramadan this year is going to be a tricky affair for hotels in the UAE," says Arshad Hussain, the director of business development at The Monarch Dubai. "Hotels relying on GCC business will see dip in occupancy after the third week of August, as GCC guests will be heading back home to prepare for the holy month of Ramadan." Mr Hussain says The Monarch has been preparing for Ramadan for the past three months, tapping into the Indian and Chinese markets. "These markets have a tendency to travel to the UAE during Ramadan," he says. The Monarch Dubai is offering room rates of Dh725 for two people a night during Ramadan, including iftar and suhoor. Angela Sharp, the director of sales for Rotana Dubai and Northern Emirates, points out that this year the calendar is working in the hotels' favour. As the dates for Ramadan are based on phases of the moon and so vary from year to year, she says it is an advantage that this year holy month will take place during summer, which is traditionally a slow period for UAE hotels anyway. And school summer holidays have been extended to the end of Ramadan, which should boost demand for rooms from families. "Where before we had to suffer slower periods for summer and then a slow period for Ramadan, this will now cover both periods," Ms Sharp says. Rotana and other hotel companies have extended their summer promotional room rates and packages to run until the end of Ramadan, offering rooms at prices starting from Dh250. Emirates Airline is offering passengers who already have a one-way or return ticket to or through Dubai a three-night stay at reduced rates for Ramadan, with packages starting at $67 a person a night, based on two people sharing. The offer also includes 20 per cent more miles on the Skywards frequent flyer programme. Meanwhile, managers at Abu Dhabi hotels say Ramadan will not be slow season for them. The Crowne Plaza in Abu Dhabi expects to be busy. Ramadan is not a slow season for the hotel, mainly because the capital still has a shortage of rooms. The main challenge, they say, is making sure non-Muslim guests who have come from abroad are aware of Ramadan's religious traditions and codes of conduct. During the month, people are expected to dress more conservatively and not even chew gum or drink water in public. The Crowne Plaza, like many hotels, sets up a screened area where non-Muslims can eat and drink and still be respectful towards Muslims. Hotels may not serve alcohol during the day, though, and must ensure no loud music is played. Hotels that fail to comply are liable to face hefty fines. "You would be amazed at how many guests come in and they have no idea how to act during Ramadan," says Khaled Zaki, the front office manager at the Crowne Plaza Abu Dhabi.