Business Tourism in Erbil: Steady Progress Towards a Top Tourism Destination

What is the role of tourism in the economy of Iraqi Kurdistan and Erbil? How important is tourism for the economy at the present time?

The role of tourism has been, is and will continue to be very important. When I first arrived in Kurdistan two years ago, there were not nearly as many hotels and brands with their eyes focused on Kurdistan as there are today. The role of the tourism industry is continuously increasing here.
If we look at the hospitality sector, the number of rooms and beds scheduled to be available in Kurdistan over the next two to three years is enormous. All players in the tourism sector believe that the demand is going to catch up as fast as the supply is scheduled, and we believe that this growth is sustainable. I think that if Kurdistan and in particular Erbil, plays its cards right, Erbil has the potential to be a very successful tourist destination in the very near future, comparable to other cities in the region. Although we still have a couple of milestones to cover first.

When you compare 2012, 2013 and 2014, we can see that 2014 is a significant year because Erbil has been named Arab tourism capital of the year. Do you see a steady progression of the evolution of the tourism sector here?

Yes, I do see a steady progression. In 2012, when I first came here, I can tell you that the hospitality sector was on track to being established, although the major players were non-existent then. At that time, we practically heard nothing about the big hospitality players. As of 2013, major destination management companies, not only hotels but even travel agencies, transportation companies, and many of the infrastructure and service industries for hospitality and tourism were revealing their plans for Kurdistan and Erbil every day.

There have been some delays in 2013 but this is normal. Many times when plans are announced they tend to be a little bit more optimistic than perhaps they should be. The tourism infrastructure in Erbil is certainly making steady progress. Without infrastructure many hotels, companies, tourists and businesspeople who come here would not have such a complete experience. Without a doubt, this area is seeing a lot of progress.

There is a build-up of room capacity here, international brands are coming, and Marriott hotels are being built etc. which shows that supply is there. Do you feel that business tourism is picking up?

There is definitely huge supply in the pipeline. This supply was announced last year and I have always thought that this was great, because when supply comes in from international brands and from names that are known to be key players in the industry it means that those people have done their feasibility studies and they have proven that demand is also coming.
I believe demand is definitely increasing for Kurdistan. If we look at airlines for example, the number of airlines flying to Kurdistan has increased every year from 2012 to 2014. The number of flights and destinations serviced have also increased and the local carrier was commissioned just a few months ago.
I do think business tourism is going to pick up for sure but business tourism alone cannot be sufficient for any tourist destination or travel hub. This has to be coupled with leisure tourism and all other sorts of tourism. Erbil has a lot of potential for leisure tourism, give and take some regulations that have to be amended and tweaked.

Do you see that there will be a concerted, joint effort to promote Erbil as a tourism destination once these international players come here?

Hotels market the destination where they are either operating or are going to operate. Erbil is no different; this is how it works in many other destinations. Hotels are backed up by huge mechanisms for marketing, promotions, packages, reservations etc. Once these mechanisms start working, everywhere in the world, either through their other hotels, salesforces on the ground, booking agencies etc. the destinations get a huge boost.

Regarding whether hotels are lobbying together with the government here in Erbil or not, I think that if this step has already begun, there is still a long way to go. I have already voiced my demand to the government, to form a hotel association for the international hotels. There is a hotel association for the local hotels in Erbil, which is doing very well. I think we have to form an association for foreign brands who have other interests and views from other countries, and who can bring demand in from other destinations in the world. Such associations exist in Abu Dhabi, Dubai, Cairo, Beirut and Amman. We need to lobby the government for our demands and particularly for the facilities that need to be offered to visitors to Kurdistan.

What should be done from a governmental point of view to attract more tourists?

For leisure tourism, packaging is very important. The government needs to take into account the entire tourist journey from finding out about the destination, which concerns promotion and marketing, to then booking the destination, which concerns facilities, availability of supply and booking engines that are promoting Erbil, to finally coming here which concerns entry permits and visas for those who need them. This is very important. We need to ensure that leisure tourists can come to Kurdistan, a destination that is promoted abroad, which they feel is safe, clean, and affordable, and that offers something to do for the whole family.
Obviously, we then have to think about the infrastructure and supplementary services i.e. shopping, tours, excursions to the mountains, transportation, facilities for such activities etc. Therefore, the whole journey from start to finish has to be considered and communicated.
I think that packaging and communication are two key areas that need to be addressed and have to be invested in.

There are many big tourism projects in the pipeline; they have announced that they want to build a ski resort and a huge theme park for example. As an industry insider, what is your opinion regarding these projects?

The ski resort project in Korek is actually already partially open. In my opinion, if Kurdistan can´t have a good ski resort, I do not know who can. There is fantastic scenery, beautiful mountains, high quality snow for skiing and it is available almost all year round. The conditions are very comparable to those in Lebanon for example.
I am a big fan of these big projects and I think that one or two big projects a year in Kurdistan would immediately put it on the map of attractive tourism destinations within this region, especially taking into account what is happening around us; with other countries either in a state of war or devastation. We on the other hand are looking to be an alternative destination for leisure and family tourism.

Can you tell us a bit about Tangram group? What is the group´s strategy and what are the main projects and countries that the group is focusing on?

Tangram is a business brand that is focused on the mid-market business traveller. We are looking into business hubs and destinations within the region and beyond. There are three hotels in the pipeline for China, which are all within this same category, and which will join the hotel that opened there a year or so ago. In the Middle East, we are looking for business hubs in Dubai and other destinations including Erbil and Sulaymaniyah.

We are looking into a very interesting project in Sulaymaniyah. We are also looking into other destinations within Iraq; Basra is a place that we are very interested in and could be a potential location for a project in the near future. Other cities such as Doha, Cairo and Amman are also destinations where we are seriously looking for development. The strategy is to have one Tangram hotel or more in the major business hubs in the Middle East.
Africa is also very important for us. We do not have anything in the pipeline for Africa right now but we are shifting our focus to include certain cities in Central and Western Africa. We have received feedback from many owners that would be interested in collaborating with Tangram in terms of positioning and brand concept.
Tangram hotels are mid-market, clean, affordable, classy, and meet international standards. They aim to provide everything a businessperson on a short stay would require.

How would you characterise your stay in Kurdistan? Would you say that the brand has been a success?

I have been in Erbil for nearly two years now. When I first arrived, I do not think anybody knew anything about the Tangram brand. Nowadays, I think that at least in Erbil, Tangram is known in the market. We have very clear positioning and very clear brand perception, which I think is a big achievement. All of our clients now understand exactly what we are and what we represent. Our clients are now asking us when and where our next opening is going to be. Our clients are waiting for us to open elsewhere which is a great achievement.
Tangram is a member of the Global Hotel Alliance. Our clients are now also aware of that and so they compare, contrast and associate us with the other 27 member brands of the alliance, which includes over 450 hotels worldwide. 
I think that we have given something to Kurdistan by coming here. We have introduced a certain standard of hospitality at a certain market level. We have also gotten a lot from Kurdistan; Erbil has given us the opportunity to make a good entrance into the Middle East for our brand.

Your vision is to be the best business hotel in Erbil, what is your strategy to achieve this?

We are continuing with what we started two years ago and which I think has been very successful. We are a business hotel and within this category, I can safely say that we are the best business hotel in Erbil. I do not think I will offend my colleagues working in this destination because they offer other services and so are not in this category as such.

We will continue to be the best business hotel by always listening carefully to our clients and by following the very steps that we set out when we started. We are being creative and are reinventing the business facilities in our hotel for conferences, training etc.… We tailor make everything in this hotel to really meet our clients´ demands. We are a small hotel and our clients are 100% business people. We pay a lot attention to meeting all of our clients´ needs by tailor making all of our solutions, within the hotel and throughout their stay. I am very interested in getting feedback from our clients to see whether we are meeting their requirements but I think that we are. Having said that, I am never satisfied! So we will continue to reinvent and re-establish ourselves as our customers´ closest partner in business travel.

What do you think makes you the best hotel for business people?

The fact that we pay attention to our clients. All hotels have rooms, beds and telephones but paying attention to clients is what puts us ahead. We focus on this key management concept by assigning teams to concentrate on listening to our clients and getting their feedback to be able to re-inject that information into the process to tweak and change until we reach perfection.

Do you have a lot of repeat business?

Absolutely. About 60 to 70% of our business is repeat business. It might not be from a repeat client, but from a repeat corporate booker. Whenever our clients want a hassle-free stay or meeting then they call me. A huge percentage of repeat business is rather daunting because if you lose a couple of customers you lose a lot and have to start from scratch. However I am very proud that after two years of loyal business, I am seeing the same loyal customers returning again and again.

What are some of the key differentials that set you apart?

The big two of Erbil are in a totally different league because they offer much more luxurious and recreational aspects than we do. Should a corporate guest or client choose those hotels then they also choose to pay for those recreational and extra facilities whether they use them or not. Our hotel offers a businessperson, coming for a short stay, exactly what he or she needs without having to pay for any other unnecessary costs. However, if they prefer to go for a more luxurious level, it is because they can afford to do so and will therefore opt for the other two players.
My differential is that I offer an affordable hotel, at a mid-market level, with superior world-class hospitality standards. That has been and will remain my key differential factor.

Last year you had a club but this year you have turned it into a restaurant. What are the new developments?

Last year we had the 12th floor club, which was a huge success. However, we realised that the main driver of our business is in-house conferences and events. This is a small hotel; we do not have vast areas where we can hold events such as corporate, training or private events etc. We have increased our inventory and the areas available for such events by transforming the 12th floor into a private venue space. We have also added a large function room on the 3rd floor terrace. Events and conferences are the main driver of our business and so we have transformed the club into a venue for such purposes which I think is a better formula for success.

What are your strategic goals for 2014 and 2015?

In 2014, I am focussing on utilising the fact that Erbil is the Arab capital of tourism to attract different sectors of business to our hotel because although our hotel is a business hotel, business tourism is a large segment of tourism in general and so we can capture more of that segment. Our focus in 2014 is to work closely with the government and with other players in the tourism and hospitality sector in Kurdistan in order to promote this destination in general and to attract business to our hotel. We are doing this through participating in events. I will be representing Kurdistan in the first Kurdistan International Tourism Conference, which is going to be held in Dubai on the 7th May. It will also coincide with the Arabian Travel Market, which is going to be held from the 5th May until the 8th May, where I shall also be representing Tangram and Kurdistan in collaboration with Tangram Group, the Global Hotel Alliance, the tourism board and the association for local hotels in Erbil. We are focusing on these events and on participating in major events that the tourism board will be holding in Erbil, in the parks and in the malls. We are collaborating with the tourism board to help make these events a success. 2014 is the year we are dedicating to making Erbil a successful destination and brand name and within this, I am naturally trying to attract business for this hotel.
For 2015, our focus will shift to adding more inventory to our portfolio for Tangram in Iraq and in particular in Kurdistan. We are going to convert the success of this unit into the success of more units that we hope to be opening in this country.

Being declared Arab capital is a big achievement; do you think it is well deserved? Erbil is probably the oldest continually inhabited city in the world, it has a tremendous history.

I definitely think that it is well deserved. I am a big fan of Kurdistan with its beautiful scenery, mountains, valleys and rivers. Erbil is safe, it has four seasons with fantastic weather, it has attractions for families etc. it really deserves to be on the map of leisure tourism destinations as well as business tourism destinations.
However, many aspects could be better coordinated for us as a destination to achieve better results. One of the key aspects that needs to be addressed is the issue of entry permits for Arabs. If it is the Arab capital of tourism that means that we are attracting Arabs yet it is extremely difficult for Arabs from this region to get an entry permit or a tourism visa. This has to be solved so that we can attract more tourism because we deserve it. A very good exercise would be to put all the tourism players around a table at least once, so that they can share their experiences and needs and come up with suggestions for improvements. I really wish that Erbil received more business than it does right now and I believe that other areas in the region are not getting their fair share either.

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