Luxury hotels and high-end tour operators have told of the challenges of meeting customer expectations for five-star service while seeking to achieve key sustainability goals.
Industry figures in the UAE said they had to walk a 'fine line' when introducing environmentally-friendly measures when guests are paying a premium price for stays and trips away.
Taking even relatively small steps, such as reducing water pressure in showers and replacing bedding and pillows less frequently, can be viewed as a way of saving costs rather than the planet, experts said during a Sustainability Summit at this week's Arabian Travel Market in Dubai.
"There are things we cannot avoid when we are in the luxury space," said Noelle Homsy, co-founder of UAE-headquartered eco-hospitality company Envi Lodges. "There are certain expectations our guests have.
"For example, we cannot put water flow regulators that reduce shower pressure because when our guests pay a premium, they want their beautiful rain shower with enough water pressure.”
Anders Ellemann Kristensen of Albatros Expeditions, which has run polar expedition cruises for the past 40 years, agreed.
"We try to optimise water usage, try to engage with the passengers, but again we have the same problem – if you pay a premium for something, there’s a limit to how much you can go.
“There’s a fine line between saying we’re doing this for sustainability before the client thinks we are just doing it to save money… It has to be genuine or it can come across as hollow.”
Guest engagement is key
Envi Lodges is in the process of creating a collection of nine resorts across the world, from Oman and Saudi Arabia to Tanzania and Costa Rica.
Ms Homsy said she and her business partner, Chris Nader, started the company "to save the planet and be as sustainable as we could be".
"But there are limitations and we cannot work alone. We have to partner with other companies that are within our value chain," she said.
"There are discussions that are always happening between us and our partners – whether suppliers, tour operators, travel agents – on how to get the goods and materials on site and we keep up to date with all the new, innovate [sustainable products] being brought to market."
The lodge journey beings with design, development, constructions and operations, Ms Homsy explained, but there is no one regulatory sustainability body that certifies or oversees all of these processes. So, Envi Lodges built its own sustainability guidelines that fall under seven pillars.
These include respecting the land, eating responsibly, protecting wildlife, understanding where resources come from and supporting local communities.
Mr Kristensen said on each of their expeditions, they educate clients by including mandatory sessions where they watch videos on what happens in Antarctica and the Arctic, explaining why it's important to be an "invisible tourist".
"People get annoyed by mandatory briefings at first and the fact they have to listen to educational videos and two times 40 minutes on biosecurity.
"It might not be ideal for luxury travellers, but when the trip is over, they’ve seen the animals, they’ve seen what they actually go into, they come back often very changed. Antarctica is a life changer."
Contributions for climate and community
Kiran Haslam, chief marketing officer at Saudi Arabia's Diriyah Development Group, said travellers rarely behave as they do at home. "They think, 'I paid for this, so I'm going to use it. I want them to change my pillow every day'," he said.
"Not every traveller is going to think along the lines of environmentalism, as an eco warrior, asking, 'What's my impact?' They think, 'I saved up all year to do this holiday and I want to live it large'. That's always going to be a big challenge. How do you overcome that?"
Nico Nicholas, chief executive and co-founder of Trees4Travel and Trees4Events, said having messaging at every point of a traveller's journey could make a huge impact.
"We have to recognise [that journey] starts the minute you walk out your front door at home, getting to the airport, getting on plane, flying, arriving, staying in a hotel, doing what you do in the location and getting home again.
"It’s not related to just one region, it’s our whole world. We need to address why we’re not being sustainable. We’re disjunct, we don't have the connections."
Tourists and tourism operators can also help by making small climate contributions, he added. “The biggest issue for sustainability is cost of capital. If we can overcome that, we can invest together in projects that can help support.”
In Dubai, where 87 million tourists passed through last year, a couple of dollars per person could amount to nearly $200 million, he said. This can be put towards necessary community projects. “A village might be using a diesel generator, which you might want to swap out for solar… With micro investments, funding comes together really quickly.”
A focus on nature and uniqueness
Andrew Gardner, associate director of biodiversity conservation at Emirates Nature, WWF, said it’s imperative for Middle Eastern countries to move past the perception of glitz and glamour, and focus on nature.
“The common perception of certainly Dubai and the Middle East generally is that it’s a desert, it’s a great place to come for shopping malls, for theme parks, great hotels and restaurants and so on, but not really high on the list for nature.
“I think this is a real shame because the area has remarkable biodiversity.”
But to get tourists to participate in activities that allow them to experience the Middle East’s natural landscape, there’s a need for profitability, added Mr Haslam.
“What’s the commerciality? Tourism is, ‘Get as many people as you can into a room, charge them, get them out and bring another group of people in’… There needs to be a shift in understanding. It’s super important to connect with nature, it’s what makes us human. So how do we bring that to the tourism industry?”
Mr Haslam said it starts with education and looking at sustainability from a holistic perspective. “It’s not just waste management, not just recycling, not just energy consumption in terms of grid points. It’s what we do to sustain a culture, preserve who it is that we are.”
At Diriyah, which is in Riyadh province, they focus on what makes the centuries-old area special, he added.
"We’re relying so heavily on what makes Saudi special and delivering that to the world. If it’s the snow fields, you're going up to Tabuk, if it's date farms or it’s the Red Sea, it’s something that you can engage with and these are the things we’re trying to bring to market.
"That’s what makes Saudi unique compared to the rest of GCC. We recognise this and we’re trying to open doors directly to that."
Ms Homsy said Envi Lodges also engages with local communities and infuses pieces of the culture within each property.
"For example, our Envi Jebel Akhdar in Oman, we've included a souq or farmers' market to welcome the local artisans to craft, to cook, to display their products and sell them to our guests."
Authenticity is the key to winning guests over, added Mr Haslam.
"The more authentic you are as a human being, the more you use each and every moment in your day as a force for good. That’s the secret."
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Envi%20Lodges%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3ESeptember%202021%0D%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Noelle%20Homsy%20and%20Chris%20Nader%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%0D%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Hospitality%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2012%20to%2015%0D%3Cbr%3E%3Cstrong%3EStage%20of%20investment%3A%20%3C%2Fstrong%3ESeries%20A%3C%2Fp%3E%0A
A Prayer Before Dawn
Director: Jean-Stephane Sauvaire
Starring: Joe Cole, Somluck Kamsing, Panya Yimmumphai
Three stars
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
RedCrow Intelligence Company Profile
Started: 2016
Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel
Based: Ramallah, Palestine
Sector: Technology, Security
# of staff: 13
Investment: $745,000
Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
EMIRATES'S%20REVISED%20A350%20DEPLOYMENT%20SCHEDULE
%3Cp%3E%3Cstrong%3EEdinburgh%3A%3C%2Fstrong%3E%20November%204%20%3Cem%3E(unchanged)%3C%2Fem%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBahrain%3A%3C%2Fstrong%3E%20November%2015%20%3Cem%3E(from%20September%2015)%3C%2Fem%3E%3B%20second%20daily%20service%20from%20January%201%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EKuwait%3A%3C%2Fstrong%3E%20November%2015%20%3Cem%3E(from%20September%2016)%3C%2Fem%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMumbai%3A%3C%2Fstrong%3E%20January%201%20%3Cem%3E(from%20October%2027)%3C%2Fem%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAhmedabad%3A%3C%2Fstrong%3E%20January%201%20%3Cem%3E(from%20October%2027)%3C%2Fem%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EColombo%3A%3C%2Fstrong%3E%20January%202%20%3Cem%3E(from%20January%201)%3C%2Fem%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMuscat%3A%3C%2Fstrong%3E%3Cem%3E%20%3C%2Fem%3EMarch%201%3Cem%3E%20(from%20December%201)%3C%2Fem%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ELyon%3A%3C%2Fstrong%3E%20March%201%20%3Cem%3E(from%20December%201)%3C%2Fem%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBologna%3A%3C%2Fstrong%3E%20March%201%20%3Cem%3E(from%20December%201)%3C%2Fem%3E%3C%2Fp%3E%0A%3Cp%3E%3Cem%3ESource%3A%20Emirates%3C%2Fem%3E%3C%2Fp%3E%0A
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
More from Rashmee Roshan Lall
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
Info
What: 11th edition of the Mubadala World Tennis Championship
When: December 27-29, 2018
Confirmed: men: Novak Djokovic, Rafael Nadal, Kevin Anderson, Dominic Thiem, Hyeon Chung, Karen Khachanov; women: Venus Williams
Tickets: www.ticketmaster.ae, Virgin megastores or call 800 86 823
TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Tips for newlyweds to better manage finances
All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.
Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.
Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.
Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.
Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.
Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.
EXPATS
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Lulu%20Wang%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Nicole%20Kidman%2C%20Sarayu%20Blue%2C%20Ji-young%20Yoo%2C%20Brian%20Tee%2C%20Jack%20Huston%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A