How Hotels Become the Soul of a Destination

Most hotels claim to be part of their destination. Few actually are.

The difference isn’t about location, star rating or heritage status. It’s about whether a property genuinely shapes how a city is experienced and remembered, or whether it simply occupies expensive real estate whilst guests screenshot the lobby for Instagram.

The distinction matters because cultural authority translates directly into commercial performance. Higher ADR (Average Daily Rate). Sustained occupancy. Media coverage you can’t buy. Guest loyalty that transcends price sensitivity. Yet most hotels are still playing in the shallow end, mistaking a local art installation in the corridor for cultural integration.


The Cultural Catalyst Effect (And Why Most Hotels Don’t Achieve It)

Here’s what actually separates destination-defining hotels from the rest: they don’t curate culture for guests. They become part of the cultural infrastructure itself.

In Bangkok, the Mandarin Oriental hasn’t spent decades ‘doing marketing’. It has built genuine cultural equity by making itself essential to the city’s creative ecosystem. The Authors’ Lounge is not a themed bar but rather a living programme that generates international press coverage, attracts literary tourism and positions the property as culturally unmissable. When journalists write about Bangkok’s creative scene, Mandarin Oriental appears in the copy. That’s not PR. That’s cultural authority.

The hotel’s partnerships with local artisan communities aren’t CSR window dressing. They’re strategic investments that create multiple touchpoints for influence beyond traditional hospitality metrics. Each initiative strengthens brand equity by ensuring the property is referenced in cultural commentary, diplomatic events and travel writing. This generates coverage worth millions in advertising equivalent, but more importantly, it builds a lasting reputation that compounds.

Aman took a different route to the same destination. Their genius wasn’t just designing beautiful remote properties. It was understanding that exclusivity itself becomes cultural currency. By creating spaces that feel impossible to replicate, they built scarcity into the brand architecture. Their properties aren’t just hotels. They’re symbols of cultural sophistication that architecture and design publications cover without prompting.

​​A strong example is Amansara in Cambodia, once a residence for guests of King Sihanouk and a 1960s New Khmer architectural masterpiece. Today it houses 24 contemporary suites and serves as a cultural gateway to the awe-inspiring Angkor Wat in Siem Reap. Through close partnerships with monks, historians and temple custodians, guests gain private access to Angkor’s spiritual and architectural world, including Buddhist blessings, sunrise teachings, and temple explorations unavailable to the general public, creating experiences that profoundly shape their understanding of the destination. Deeply rooted in Siem Reap’s history and culture, the property brings the city’s spirit to life, that’s why Amansara is featured as often in cultural writing as it is in travel media.

Most Properties Confuse Design With Integration

Beautiful interiors don’t make you culturally relevant. Neither do locally sourced amenities or staff in traditional dress.

Cultural integration means becoming part of a city’s social and creative fabric. It means interpreting the destination rather than imposing upon it. It requires moving beyond guest-facing theatre to create genuine cultural moments that the local communities actually care about.

Raffles Singapore understood this. The Writers Bar is where Singapore’s creative community launches books, where important conversations happen, where the city’s cultural leaders actually gather. The programming feels authentic because it is. That authenticity generates organic media attention and word of mouth that marketing departments dream about.

The insight here is simple but frequently missed: when visitors become active participants in a destination’s culture rather than passive observers, they form emotional connections that drive loyalty and advocacy. But you can’t manufacture participation. You have to earn your place in the cultural conversation first.

The Strategic Framework (That Most Hotels Ignore)

If you’re serious about cultural positioning, here’s what it actually requires:

  • Culinary Diplomacy: Not showcasing local cuisine. Evolving it. The best properties don’t just put regional ingredients on the menu. They create signature dishes and culinary experiences that become part of the destination’s identity. They train the next generation of chefs. They document disappearing techniques. They make news, not just meals.
  • Cultural Programming: Events that bring together the right communities, not just any crowd. Art exhibitions that serious collectors attend. Music programmes that local musicians respect. Literary salons where real writers want to appear. These are investments in cultural capital that position the hotel as a platform for the city’s creative life.
  • Creative Collaborations: Partnerships with artists, musicians, writers and cultural institutions that create ongoing content and genuine media opportunities. These collaborations generate more authentic publicity than any traditional campaign because they’re based on substance, not spin.
  • Community Integration: Becoming a gathering place for locals, not just tourists. If your property empties out when tourist season ends, you’re not culturally integrated. 

Done properly, these initiatives transform a hotel from accommodation provider to cultural stakeholder. Guests leave with more than memories of luxury. They leave with a nuanced understanding of the destination itself. More importantly, they become advocates who share these cultural stories within their networks, creating word of mouth that money genuinely cannot buy.

Cultural Authority Drives Commercial Performance

When cultural relevance becomes part of your DNA, it elevates every measure of success, from reputation and recognition to loyalty and longevity.

When properties achieve genuine cultural authority, several things happen:

  • Premium Positioning: Cultural relevance supports pricing power. Guests pay more to stay somewhere that matters to a destination, not just in it.
  • Media Value: Authentic cultural programming generates editorial coverage in tier-one publications. This represents earned media, not advertorial. The kind of coverage that shapes perception and drives demand in ways paid advertising never will.
  • Guest Loyalty: Cultural experiences create emotional bonds that transcend mere transactional relationships. Your guests become advocates, not just repeat bookers.
  • Talent Attraction: The best hospitality professionals want to work at properties that mean something. Cultural authority makes recruitment easier and retention stronger.
  • Investment Appeal: Properties with strong cultural positioning maintain value through market cycles and attract sophisticated investors who understand long-term brand equity.

The commercial case is clear. The question is whether you’re ready to invest in building genuine cultural capital, or stay content with surface-level gestures of authenticity.

The QUO Perspective: Hospitality as Cultural Architecture

A hotel can define a destination, but only when it commits to being more than a building with beds.

At QUO, we work with properties that understand they’re not in the accommodation business. They’re in the cultural experience business. They don’t just provide rooms. They provide a lens through which guests understand and connect with a destination.

This requires strategies that are resonant, emotionally compelling and commercially sound. It means moving beyond marketing slogans to create genuine cultural integration. It means building reputation through association with a destination’s most meaningful moments, not its most photographable ones.

What This Means for Your Strategy

Stop asking whether your property is ’part of the destination’. Start asking these harder questions:

  • What cultural conversation does your property actually join? Not which conversation you’d like to join. Which one you’ve earned the right to be part of.
  • What local narratives do you genuinely amplify? Not which ones you mention in your marketing. Which ones benefit from your platform and resources.
  • How do you create experiences that feel essential rather than optional? Not experiences that fill your programming calendar. Ones that locals and guests both consider unmissable.
  • How do you build reputation through association with the destination’s most meaningful moments? Not its prettiest backdrops. Its actual cultural inflection points.

If you can’t answer these questions with specific examples and measurable outcomes, you’re not truly culturally integrated. You’re culturally adjacent. And in an age where travellers seek meaning alongside luxury, where authenticity drives choice, and where cultural experiences determine brand preference, adjacency isn’t enough.

Your property will be remembered for something. The question isn’t whether you’re part of the destination’s story, it’s whether you’re a footnote or a defining chapter.

The hotels shaping tomorrow’s travel landscape aren’t asking for permission to join cultural conversations. They’re creating conversations worth joining.

Partner with us to move from cultural aspiration to cultural authority.

Written by Leila Costigan, Head of Marketing at QUO

QUO is a strategic branding agency with offices in Bangkok, Ho Chi Minh, Singapore, London and Riyadh.

 

The Shifting Ground Beneath Destination Brands

We are entering a new world. Tectonic shifts in geo-politics, technology and social connection are redefining societies. Arguably Generation Alpha is more disconnected than any generation that has come before it.

The impact this shift is having on the definition of brands is profound. Brands are not disappearing, they are becoming more dynamic and more agile. It is true across industry but it’s particularly resonant in the way we perceive nations.

In this Q&A, our Founder and CEO David Keen, explores what’s actually changing: how social media is reshaping discovery, what the rise of East Asian travellers means for messaging, why DMOs need to rethink their role, and why cultural truth (not slogans) will define which destinations stay relevant and which fade into obsolescence.


QUO: What are the biggest global forces shaping branding today?

David Keen: We are living through an extraordinary moment of transformation. The shifts we’re seeing in diversity, socioeconomic patterns, and geopolitics are reshaping the very foundations of how societies and economies function. But more existentially, artificial intelligence will be the defining force of the next one to five years. 

“AI is going to change the global economy and, more importantly, the way we see and experience the world.”

We are moving into an era many believe is dystopian. Bureaucracies, governments, legacy institutions – they’re struggling to keep pace. In most countries, technology is advancing far faster than the systems meant to govern it. That creates both challenges and opportunities for brands navigating this environment.

Geopolitical shifts, including populism and unpredictable leadership changes, can dramatically reshape perception almost overnight. A transition from a populist to a centrist government can alter global narratives about a country, affecting tourism and nation branding. Brands that anticipate these changes can turn geopolitical events into opportunities, while those that do not risk losing relevance.

QUO: What does this mean for nation and destination branding?

David Keen: Legacy identities might become obsolete. Most nation brands, especially in Asia, are built on narratives that are decades old and completely out of sync with the realities of today’s culture, business and technology.

“As the world evolves, there is a greater need for clearly defined, distinctive identities that can evolve as fast as the societies they represent.”

Take Vietnam for example. It is vibrant, dynamic and entrepreneurial, yet its global identity still lags behind what is happening on the ground. The same is true of Thailand, India, Malaysia and Singapore. These places are evolving rapidly, but their brand identities often remain static.

The private sector now plays a critical role in this. Governments alone cannot capture the full complexity of a nation brand, particularly with AI and bureaucracy slowing response. Smaller agencies and agile players are essential to project a nation’s story accurately and target audiences in ways governments simply cannot.

QUO: With technology and AI advancing so quickly, do you think traditional tourism organisations such as DMOs still have a role to play?

David Keen: Their role is changing. The speed at which people travel and engage with destinations today is extraordinary. Ten or fifteen years ago, we could make educated guesses about the next decade. Today, the rate of change is too fast. Only organisations that are agile, visionary and able to project themselves into the future will succeed.

DMOs can still play a vital role, but only if they evolve to be more nimble, technology-driven and insight-led. They also need to collaborate closely with the private sector to fill gaps. Smaller agencies, local operators and tech-enabled platforms can respond faster to micro-trends and hyper-personalised travel behaviours – something governments alone cannot achieve.

QUO: How are global travel patterns changing, and what does that mean for destination branding?

David Keen: Historically, the Western traveller dominated global tourism. Destinations and brands designed experiences and messaging around that market. Today, that is no longer the case. The centre of gravity is shifting toward East Asia, with countries like Japan, South Korea and China driving much of the travel volume.

“Rather than speaking to a Western audience, destinations must adapt messaging and experiences to resonate with new traveller segments.”

It’s not about changing the culture of a destination – it’s about understanding how it’s perceived and consumed by different markets. Targeted, culturally informed branding can create meaningful connections with these audiences.

Economic factors and affordability are reshaping travel as well. Budget airlines and cheaper accommodations make once-elusive experiences accessible to younger travellers, expanding the market for niche tourism. Brands can now consider the economic dimension when designing offerings, understanding not just who travels, but how they travel.

QUO: Does that mean tourism marketing will become more fragmented or hyper-targeted?

David Keen: Absolutely. AI and data analytics now allow us to know exactly who is coming from where, down to the city or even neighbourhood. This enables incredibly targeted campaigns, even down to individual proclivities, travel routines and social networks.

The challenge is maintaining authenticity. If your brand is still communicating with the wrong audience, it doesn’t matter how advanced your data is. Legacy brands that fail to adapt to this new reality will find themselves in trouble.

Generational differences also complicate matters. Even within a single family, preferences differ greatly. Younger travellers focus on specific experiences and social media trends, while older travellers may seek cultural depth. Brands must navigate this diversity of needs.

QUO: How do social media and platforms like TikTok or Instagram change the way people choose destinations?

David Keen: It’s fascinating and sometimes alarming. The new generation often travels to recreate moments they’ve seen online rather than to experience culture deeply. They may fly across the world to eat at a café seen on TikTok or visit a viral location.

This changes the dynamics of discovery. When I started travelling in Asia in the late 1980s, travel was about exploration and learning.

“The magic of the unknown is fading, but curated social media can elevate small, authentic local experiences to global fame overnight.”

Yet this curated social media exposure isn’t entirely negative. TikTok and user-generated content are now part of the cultural ecosystem of travel. They can elevate small, authentic local experiences to global fame overnight. The challenge for brands is to leverage these moments without diluting authenticity. Discovery versus curated social media experiences must be balanced carefully to maintain cultural depth.

QUO: That touches on local communities. How can smaller, less-visited destinations be included in national branding strategies?

David Keen: Collaboration is key. Governments cannot dictate authenticity from the top down. Local businesses, artisans and communities must play a central role in shaping how their culture is represented.

Japan illustrates this well. Tourism is concentrated in Tokyo, Kyoto and Osaka, but the richness lies in its villages, traditions and regional experiences. Branding agencies can help by building frameworks that allow these smaller voices to be heard, connecting them to global narratives. Attention and economic benefits should be distributed strategically across multiple locations, not just concentrated on viral hotspots. This ensures that local communities benefit and that the destination as a whole thrives.

QUO: With all these changes, what does the future of destination branding look like?

David Keen: We must rethink the model entirely. You cannot capture a nation’s identity in a single tagline anymore. Culture is not a slogan; it is a living ecosystem.

The future of branding lies in cultural truth. Authenticity will sustain a place or brand in an accelerating world. Whether it is a bubble tea shop in Kaohsiung or a national tourism campaign, the essence has to be real.

Our role as brand builders is to help destinations reconnect with that truth and amplify it intelligently through technology, storytelling and collaboration. This means harnessing AI for personalisation and insight, understanding geopolitical risks and shifts, collaborating with the private sector and local communities, and leveraging social media while preserving discovery and authenticity. That is how we move beyond legacy branding and build something resilient for the next generation.

QUO is a strategic branding agency with offices in Bangkok, Ho Chi Minh, Singapore, London and Riyadh.

 

View from the Mountain: Oman’s Rise as the Soul of Gulf Tourism

Perched high on the Saiq Plateau, Hotel Indigo Jabal Akhdar offers more than just sweeping canyon views. It offers a lens into Oman’s emerging role as the soulful heart of Gulf tourism. 

QUO spoke with the hotel’s General Manager, James Reeves, about how the country is finding a balance between growth and authenticity. He shared how Hotel Indigo is weaving local culture into its design and guest experience, and why Oman’s understated charm is starting to resonate with travellers around the world.


QUO: Oman is often seen as the quiet disruptor in Gulf tourism. From your perspective, how is its role in the region starting to shift?

James Reeves, General Manager, Hotel Indigo Jabal Akhdar Resort & Spa: Oman is quietly stepping into the spotlight. What stands out most is how warmly travellers are received. Omanis are proud of their heritage and genuinely open to sharing it. That kind of authenticity is rare. The country still flies under the radar compared to its neighbours, but that’s part of its appeal. More travellers are discovering what makes this place so special: authenticity, nature, culture and soul. Since opening Hotel Indigo Jabal Akhdar in October 2024, we’ve seen a growing appreciation for Oman’s unique offering.

The country’s demographics show a clear need for opportunity. With 44% of the population under 20, tourism plays a vital role in job creation. Omanis are well-educated, multilingual and increasingly engaged in the hospitality sector. The government understands tourism’s potential and has set bold goals, including more than doubling the number of hotel keys by 2035.

COVID had a serious impact on Oman, especially with the grounding of its legacy airlines. However, recovery is underway. A new budget airline has launched, creating a more accessible premium/budget split and increasing air connectivity, particularly with Northern England, Eastern Europe, Germany, Rome and London.

At Hotel Indigo, about 30% of our team is Omani. We don’t just hire, we mentor. We give people the tools to grow, to connect with guests in an authentic way, and to take pride in representing their culture. That human connection is what sets Oman apart.

Nizwa, Oman

QUO: Tourism plays a big part in Oman Vision 2040. What changes are you seeing on the ground as the country works toward that goal?

James Reeves: There’s been a lot of meaningful progress, especially in infrastructure. Oman was recently ranked as having the second-best roads in the Middle East, and work continues to expand the network so guests can explore more of the country with ease.

On the aviation front, we’re seeing more regional airlift using smaller aircraft and new destinations being added. Oman is geographically vast (larger than Germany) with a rich diversity of landscapes that are now becoming more accessible.

QUO: More and more travellers are coming to Oman for cultural depth and meaningful experiences. What do you think is behind this shift?

James Reeves: Oman is incredibly rich in natural and cultural assets. From the microclimates of the south to the fjord-like coasts of Musandam in the north, it’s a land of contrasts. The geology alone (formed by tectonic plates) reveals marine fossils embedded in ancient mountain ranges. In Jabal Akhdar, where our hotel is located, you can trace over 3,000 years of civilisation.

There are archaeological sites with graves over 6,000 years old. The new Oman “Across the Ages” museum near Nizwa is an incredible example of how Oman is telling its story. It charts the country’s journey from a fishing and trading culture to a global diplomatic force. Oman has long played a respected role in regional peace efforts, and that stability resonates with culturally curious travellers.

QUO: What role is your hotel, which opened at the end of last year, playing within the wider context of Oman’s tourism growth?

James Reeves: Hotel Indigo is not your typical resort here. Historically, many Omani resorts shared a similar aesthetic. We approached things differently – using the Indigo DNA to tell the story of the neighbourhood.

Our design team created a comprehensive narrative that informed every detail, from room design to public spaces. We offer a thoughtfully curated scent experience that reflects the region’s rich natural heritage. A calming blend that sets the tone for the stay. The hotel features signature scents, each inspired by local flora and elements: Pomegranate, Plum tree, Apricot, Damask rose, Olive wood and Honey. These scents are integrated into the hotel’s design, from room fragrances to public spaces, creating an immersive atmosphere that connects guests with the essence of Jabal Akhdar. The music, visuals, and overall atmosphere create a lifestyle-driven, contemporary resort experience with a strong local soul.

Our setting on the edge of a remote canyon delivers a rare sense of stillness and perspective, while VUE (officially the highest rooftop lounge and bar in the Middle East) adds a bold, elevated touch to the experience.

Hotel-indigo-jabal-akhdar-resort-and-spa-oman

QUO: How are you integrating Oman’s nature and culture into the guest experience at Hotel Indigo? Any details you’re especially proud of?

James Reeves: Everything we do is rooted in a deep respect for place. We offer village tours, including visits to rosewater distilleries, and collaborate with local artisans. Our team is trained not just to serve, but to interpret the stories behind the land, the people, and their traditions. That’s where real connection happens.

Hotel Indigo Jabal Akhdar Rose Ritual Experience

QUO: Wellness is booming across the Gulf. What’s Oman’s approach?  How would you describe the wellness story unfolding here? How are you bringing wellness to life at Hotel Indigo?

James Reeves: Wellness is central to our experience, and at 2,000 metres above sea level, Jabal Akhdar offers the perfect setting for restoration. Historically, this was a 1.2 night destination. Our vision was to transform that into something deeper, a place where guests could truly unplug and reconnect. Today, guests stay 2 to 3 nights on average, with some extending to 14 nights for a full reset.

Our signature wellness offering is JALA Spa and Wellness, a destination in its own right. It is a separately branded concept, designed to bring a world class wellness philosophy to the heart of Oman. We have partnered with Ila, MAULI and Maison d’Asa from Marrakech to co create a holistic spa protocol that is entirely bespoke in the Hammam treatments. Each treatment is rooted in healing traditions from around the world, from Thai ginseng therapies to craniosacral reiki and sound healing. As part of the journey, guests are welcomed at Camelia Tea House, an integral part of JALA. Here they begin their wellness ritual with a bespoke mountain tea blend of Damask rose, ginger and liquorice root, a grounding and fragrant infusion inspired by the botanicals of Jabal Akhdar.

This wellness experience was curated by Indah Megayani, a spa and wellness expert with over 20 years of global experience in holistic therapies and integrative wellness. Her deeply intuitive approach blends Eastern and Western modalities to meet guests where they are physically, emotionally and energetically. She has trained our international team of practitioners to deliver not just treatments, but meaningful healing experiences shaped by her vision.

Hotel Indigo Jabal Akhdar Resort & Spa Oman Spa

We are also deeply committed to ethical and sustainable practices. All spa products used at JALA are cruelty free, eco conscious, and crafted with ethically sourced natural ingredients. From organic essential oils to plant based elixirs, every element is chosen not on

Wellness is central to our experience, and at 2,000 metres above sea level, Jabal Akhdar offers the perfect setting for restoration. Historically, this was a 1.2 night destination. Our vision was to transform that into something deeper, a place where guests could truly unplug and reconnect. Today, guests stay 2 to 3 nights on average, with some extending to 14 nights for a full reset.

Our signature wellness offering is JALA Spa and Wellness, a destination in its own right. It is a separately branded concept, designed to bring a world class wellness philosophy to the heart of Oman. We have partnered with Ila, MAULI and Maison d’Asa from Marrakech to co create a holistic spa protocol that is entirely bespoke in the Hammam treatments. Each treatment is rooted in healing traditions from around the world, from Thai ginseng therapies to craniosacral reiki and sound healing. As part of the journey, guests are welcomed at Camelia Tea House, an integral part of JALA. Here they begin their wellness ritual with a bespoke mountain tea blend of Damask rose, ginger and liquorice root, a grounding and fragrant infusion inspired by the botanicals of Jabal Akhdar.

This wellness experience was curated by Indah Megayani, a spa and wellness expert with over 20 years of global experience in holistic therapies and integrative wellness. Her deeply intuitive approach blends Eastern and Western modalities to meet guests where they are physically, emotionally and energetically. She has trained our international team of practitioners to deliver not just treatments, but meaningful healing experiences shaped by her vision.

We are also deeply committed to ethical and sustainable practices. All spa products used at JALA are cruelty free, eco conscious, and crafted with ethically sourced natural ingredients. From organic essential oils to plant based elixirs, every element is chosen not only for its healing properties but also for its alignment with our environmental values. Packaging is minimal and biodegradable where possible, and we work with suppliers who share our vision for responsible luxury.

Hotel Indigo Jabal Akhdar

The spa itself is designed as a sanctuary, architecturally minimal yet spiritually rich. Guests do not just come for a massage; they come for transformation. Whether it is a hammam ritual infused with local botanicals or a mindfulness session overlooking the canyon, wellness here is immersive, personal and soulful.

Wellness in Oman is not about spectacle. It is about sincerity. We have embraced that spirit, and guests are responding to it.

QUO: Sustainability is on everyone’s radar these days, but Jabal Akhdar is such a delicate environment. How are you approaching growth while keeping that balance in mind?

James Reeves: We’re incredibly mindful of the environment. Everything from architecture to operations is designed to tread lightly. We also believe sustainability includes supporting local communities. Employing Omanis, buying locally, and sharing cultural knowledge.

QUO: What do you see coming next for Oman’s hospitality brands? What excites you about the road ahead?

James Reeves: Oman is on the cusp of a new chapter. One shaped by vision, investment, and a deep respect for its roots. As the world rediscovers the power of authenticity, Oman is emerging not with spectacle, but with soul.

The opportunity is clear, but so is the responsibility. Growth must never come at the expense of identity. As long as Oman stays true to its DNA – its traditions, its stories, its sincerity – it will continue to stand apart. This is a country that doesn’t just welcome travellers; it leaves a lasting mark. Many who visit return again and again. Some make it part of their annual travel rhythm, drawn by the landscape, the people, the peace.

The appeal is global. We’re seeing rising interest from Europe, Japan, and even early curiosity from the U.S. They’re seeking connection, meaning, and place. And Oman delivers.

It’s also one of the safest countries in the world, governed by laws that protect culture and preserve identity. Pride runs deep. From the Sultan’s vision to the guide leading guests through his home village. This is a place where people are genuinely excited to share their world with visitors.

Oman is made for slow travel. With the highest sand dunes on Earth, the second-largest canyon, vast cave systems, untouched desert, and rugged coastline, it offers endless discovery. You could spend years here and still not see it all.

Smaller lifestyle and budget brands are beginning to explore opportunities beyond Muscat, towards the beaches, mountains, and wildlife reserves. But the real magic lies in Oman’s ability to grow with grace. To invite the world in, without losing itself.

Because today’s travellers want more than luxury. They want stories. They want soul. And Oman offers that in abundance.

Images: Courtesy of Hotel Indigo Jabal Akhdar Resort & Spa by IHG 

→ Explore how QUO crafted the Hotel Indigo Jabal Akhdar website and digital experience: View the case study

QUO is a strategic branding agency with offices in Bangkok, Ho Chi Minh, Singapore, London and Riyadh.

Beyond the Giga Projects

FHS Riyadh 2025 Saudi Arabia Tourim Where Idea Shapes Vision with David Keen and the Ministry of Tourism Saudi Arabia

A New Chapter In Saudi Tourism

In recent years, Saudi Arabia’s tourism narrative has been dominated by giga-projects and high-profile global events. Megastructures rising from the desert and headline-making bids for the FIFA World Cup, Expo 2030, and the Asian Winter Games. These bold initiatives, many under the Vision 2030 umbrella, have rapidly reshaped global perceptions of the Kingdom.

But as the recent Future Hospitality Summit (FHS) in Riyadh revealed, the spotlight is beginning to shift. From sky-high ambitions to a broader emphasis on grassroots growth, regional destinations, and private sector dynamism.

Empowering Local Players and Regional Destinations

The emerging narrative centres on homegrown hospitality brands, empowered local entrepreneurs, and a renewed emphasis on cultivating Saudi talent. In a conversation with David Keen, QUO’s Founder and CEO, Mahmoud Abdulhadi, Saudi Arabia’s Deputy Minister for Destination Enablement at the Ministry of Tourism, discussed this next phase of the Kingdom’s transformation: one that encourages smaller players and global partners alike to co-create a diversified and authentically Saudi tourism ecosystem.

“Our industry is still relatively young, just five years in, but we are rapidly maturing,” Abdulhadi noted. “Our ambition is to make tourism investment so seamless that investors won’t need to talk to a government entity. Once we reach that stage, our role shifts from enabler to regulator.”

This sentiment was echoed across sessions at FHS, where one of the most talked-about regions was Aseer – a mountainous southwestern province rich in culture, cool climates, and untapped potential. International and local developers alike are starting to recognise the region’s promise as a hub for nature-based tourism, cultural immersion and year-round escapes.

Homegrown Hospitality on the Rise

FHS Riyadh 2025 with Catherine Edwards_Saudi Arabia Tourism

At the same time, Saudi hospitality groups are stepping into the spotlight. An example is Elaf Group, a longstanding player in the Kingdom’s hospitality scene. Speaking on a panel moderated by QUO’s Chief Growth Officer, Catherine Edwards, Majed Kaki, Elaf’s Vice President of Business Development, introduced ‘Saudi Journey’. An initiative that delivers immersive cultural experiences through scent, music, cuisine, and other sensory guest touchpoints across their hotels. He also shared Elaf’s plans to expand Joudyan, a second brand rooted in Saudi traditions but designed for the modern traveller. Joudyan exemplifies the Kingdom’s growing confidence in building distinctive, local brands that resonate with evolving consumer expectations.

International Brands Adapt to the Local Market

International operators are also aligning with this localised shift. At FHS, Wyndham Hotels & Resorts announced a major deal to launch their Super 8 brand in Saudi Arabia through a landmark 10-year partnership with Le Park Concord. The plan is to open 100 Super 8 hotels across the Kingdom, with the first expected by 2026.

This marks a strategic entry into the economy and midscale segments, aiming to fill a gap in the market for clean, consistent, and affordable accommodation along the Kingdom’s expanding highway network and in key urban centres such as Riyadh, Jeddah, Makkah, and Madinah. With a focus on smart modular construction and eco-conscious design, Wyndham’s approach aligns with the Kingdom’s push for sustainable development and enhanced visitor experiences.

Strategic Alignment with Vision 2030

“None of this is accidental,” Abdulhadi emphasised. “From giga-projects to event hosting, from private sector enablement to licensing reform – everything we’re doing is part of a laser-focused strategy to deliver on the promises of Vision 2030.”

That strategy is already bearing fruit. In 2023, Saudi Arabia surpassed 100 million visitors for the first time. A milestone reflecting both inbound and domestic Saudi Arabia tourism growth. Leisure tourism now accounts for 35% of domestic visitors and over 30% of domestic spend, while inbound leisure makes up more than 20% of both metrics — a major shift in a country previously reliant on religious pilgrimage.

Structural Reforms Fueling Growth

Driving these changes are deep structural reforms. Through initiatives like the Tourism Investment Enablement Programme (TIEP), the Ministry of Tourism has reduced government fees by 75% since 2019, streamlined licensing processes, and increased the number of tourism entities by 69%. Notably, the number of licensed tour guides has surged by 168%, indicating strong investment in human capital to deliver authentic, high-quality experiences.

Meanwhile, the Hospitality Incentive Programme is helping reduce operating costs for private investors by up to 20% of capital expenditure, especially in emerging destinations. This initiative aims to de-risk early-stage development, catalysing investment in lesser-known regions and proving their commercial viability.

Cultivating Future Talent

FHS Riyadh 2025 Paul Keen Director of Operations and Culture at QUO

Investment in infrastructure must go hand in hand with investment in people. One of the most forward-looking discussions at FHS centered on rebranding hospitality careers to attract Saudi youth. A key theme was the need to dismantle long-standing perceptions that the industry is low-skilled or lacking in prestige.

QUO’s Director of Operations & Culture, Paul Keen, speaking on a panel about talent and the future workforce, offered a fresh perspective on engaging Gen Z. He stressed the importance of purpose-driven storytelling and the role of social media in glamourising the industry. “Hospitality already has a natural appeal through its association with travel, culture, and human connection,” he noted, “but we need to align this with the aspirations of younger generations, they want meaning, growth, and impact.”

Other panelists echoed this view, pointing to successful programs such as those led by Red Sea Global. Layla Alamri, Education Senior Manager, highlighted initiatives including fully sponsored education with top-tier institutions and international enrichment experiences – both designed to shift perceptions and attract top talent. Skills Development and Talent Optimization Expert Dr. Abeer Alamri called for curriculum reform and early industry exposure through internships and mentorship, arguing for a more multidisciplinary approach that integrates hospitality into wider education pathways. Meanwhile, Ibrahim Osta, Global Tourism Lead and Senior Economic Growth Advisor for Chemonics International,  advocated a four-tiered model: high school engagement, vocational training, university education, and industry-based learning—all tailored to the Kingdom’s cultural context.

Ultimately, the panelists agreed that empowering a new generation of Saudi talent requires systemic change, not just messaging. It’s about creating real pathways, support structures, and a cultural shift that recognizes hospitality not as a fallback, but as a prestigious and purpose-driven career.

Building on Heritage: Culture as Competitive Advantage

Still, authenticity remains the cornerstone of Saudi Arabia’s tourism proposition.

“Hospitality is in our DNA,” said Abdulhadi. “For thousands of years, we’ve welcomed pilgrims and protected travellers — in deserts, in mountains, in cities. This isn’t new to us. What’s new is the opportunity to translate that legacy into sustainable business and career paths.”

That opportunity is being seized not just by global conglomerates but by a new generation of Saudi entrepreneurs who recognise that visitors are no longer coming just for luxury or major events. They’re seeking experiences that are deeply and uniquely Saudi.

The Road Ahead: Balancing Scale with Soul

Looking forward, the challenge lies in maintaining momentum while balancing scale with soul. Giga-projects will continue to capture headlines, but it’s clear that the future will equally be about smaller-scale private initiatives. Saudi Arabia is proving that transformation isn’t just about building big. It’s about building smart, local and authentically.

 

Watch the FHS Riyadh session of David Keen, Founder and CEO, QUO

Watch the FHS Riyadh session of Catherine Edwards, Chief Growth Officer, QUO

Watch the FHS Riyadh session of Paul Keen, Director of Operations and Culture, QUO


QUO is a strategic branding agency with offices in Bangkok, Ho Chi Minh, Singapore, Riyadh, Amsterdam and London.

Navigating New Horizons in Saudi Arabia

In this exclusive Q&A, QUO CEO David Keen offers a unique perspective on Saudi Arabia’s extraordinary journey of transformation. His reflections provide a deep dive into the Kingdom’s evolving identity, from Vision 2030 to cultural renaissance. Discover the profound changes reshaping Saudi Arabia and why its future holds global significance.

Date palms in Wadi Sharma, Saudi Arabia

QUO: QUO has been present in KSA for almost four years now. What are your key reflections from the journey so far?

Is the destination itself set to to play a bigger role in customers’ travel planning?

DK: I’ve been blessed with an incredibly diverse life where I’ve spent much of the last 40 years living and travelling in different continents, from the western world to around Asia and Europe. During the last 35 years, I’ve based myself in Asia and I’ve watched several well known destinations go through economic, social, infrastructural and political changes. And those range from Hong Kong to Bhutan, Thailand, Singapore, Philippines and several others. I’ve visited those places on multiple occasions and lived in some of them.

However, I went to Saudi Arabia for the first time in 2020, and I have never seen any place – country or destination – embark on such a significant transformation. As an outsider, my first thought was to wonder what that change means for the global perception of Saudi Arabia, which as we all know has had its own challenges.

I learned something important during a trip to a meeting about 45 minutes outside of Riyadh. I ended up in a small village because I had entered the wrong address and arrived at the wrong place with a large suitcase. Several people at the meeting venue approached me to offer help. The correct location was a 10- to 15-minute drive away.

I accepted a ride from a lawyer from Riyadh who was incredibly kind, warm and engaging. During the drive, we talked about Saudi Arabia, and he explained that the change is not about external perception. It reflects how the Saudi people feel about their country. The internal perception of the change the Saudi people are going through is what truly matters.

And the penny dropped.

Like many other places in the world, and with many brands or concepts we create, success depends on internal acceptance. The people of the Kingdom are deeply engaged with Vision 2030, the development of NEOM, the Red Sea projects, and the fundamental changes in Medina and Mecca. Their engagement with what’s happening in the country will inevitably shape the future perception of Saudi Arabia.

QUO: What are the most promising changes you’ve seen emerge from Vision 2030?

DK: A roadmap. In 1991 or 1992, I was in Bhutan, a small kingdom in the Himalayas. I was then engaged with the Ministry of Tourism on the future of Bhutan and was heavily involved in shaping the Kingdom’s identity. And one of the conversations I had about the then Fourth King of Bhutan was fundamental to the country’s infrastructural changes.

He had implemented a five-year plan, a common strategy for many developing nations. However, the king personally drove this initiative by visiting every village to ask the residents what they needed most – whether it was a school, a hospital, or other essential services. He used this information to create the five-year plan, which has since been successfully implemented, leading to Bhutan’s exponential development over the last 30 years.

In 2018, Saudi Arabia articulated Vision 2030, a similarly ambitious roadmap. It was perhaps the most audacious and courageous plan any country had ever undertaken – a fundamental shift from an oil-based economy to a multisector economy.

“And the penny dropped. Like many other places in the world, and with many brands or concepts we create, success depends on internal acceptance.”

This roadmap included some of the most groundbreaking concepts known to mankind. The concept of NEOM, for instance, is a project for humanity, envisioning the future of civilization. Saudi Arabia is creating this vision as a gift for humanity, reimagining the future of water, food, hospitality, architecture and education. To my knowledge, no other country is engaging on this level for the benefit of humanity.

Reimagining the economy away from oil-based to one that focuses on tourism, entertainment and other sectors as envisioned by His Royal Highness goes to the core of what Saudi Arabia represents.

A close friend of mine works for the Culture and Development Fund, and the projects she is undertaking aim to highlight the richness, diversity, and magnificence of Saudi culture, bringing it to life as part of that vision. Architectural developments, be it in Riyadh or Jeddah or in smaller destinations like Khobar or in Yanbu, are being fundamentally reimagined to bring Vision 2030 to life.

We are fortunate to be involved in many different projects, all of which are founded on the principles of this vision. So it’s roadmap, a mandate, an aspiration.

QUO: The luxury segment is the fastest growing hospitality sector. What are luxury and high-net-worth Saudis looking for from hospitality and wellness brands?

DK: I think they’re looking to express their inner beauty and cultural richness, looking to engage – in a Saudi context – with the kinds of experiences they’ve been able to have in Paris, Rome, New York.

The Saudization programme, which aims to engage more with the Saudi workforce, is equally applied to projects like the Boutique Group’s magnificent palaces and the Red Sea development’s incredible hotels. It’s a new dimension for tourism, a new dimension for hospitality. It takes the bar and raises it and adds depth and purpose to it.

It’s not about creating greater experiences; it’s about offering different types of experiences, whether in wellness, historical tourism such as in Alula, or pilgrimage tourism, which is arguably undergoing the greatest change of all.

QUO: You have spoken on many occasions about your deep love and respect for Saudi culture and its people. How would you encapsulate it for someone who has never visited?

DK: I think it’s difficult. I’m still learning, and I learn every time I go. There are cultural mores of generosity, warmth, kindness and giving that I think are unparalleled. I’ve never encountered a culture whose core values are so focused on delivering warmth and hospitality – giving up your own bed or your last food – because that’s what the culture demands. The history of Saudi Arabia has ingrained this level of selflessness in the people. That generosity and warmth of human connection are how they live and operate.

What I’ve experienced, visiting almost monthly now, is that I learn something new each time. I am enriched by the beauty of the people and the incredible richness of intelligence and sensibilities that the Saudi people have shared with me. It’s like nowhere else.

What has been your personal favourite anecdote from your time spent in the Kingdom thus far?

My favourite experiences have been the journeys I’ve been fortunate enough to take. I’ve completed three significant journeys, all by car, traversing the Kingdom. These trips helped me understand how enormous Saudi Arabia is and how diverse it is geographically – with mountains, water, deserts and cities.

One memorable moment was driving from Alula to NEOM, where I encountered landscapes I couldn’t believe existed on Earth. The different colours of rocks and types of mountain experiences, the emptiness, and the vastness were unlike anything I experienced even driving across America. It felt like being in another world, sparking an endless curiosity almost to the breaking point. It’s also an incredible land of discovery in terms of the people I meet.

What would be your advice for any business wishing to develop relationships in the Kingdom?

I would give the advice I was given many years ago as a child by my late uncle: Go to Saudi Arabia. Find your place, find your vision and engage. Learn and understand the relatively simple complexities. There are complexities, but understand how your purpose and vision can fit into the Saudi context.

The ministries are fairly well connected and straightforward in terms of navigation. The opportunity that an entrepreneur or a larger organisation has in Saudi Arabia is as great as it could be and as great as you want to make it.

The Art of Destination Branding

We asked QUO CEO David Keen about the evolving art of destination branding and what it means for locations aiming to position themselves as authentic, immersive travel experiences in today’s rapidly changing tourism landscape.

QUO graphic for the article 'The Art of Destination Branding,' featuring abstract visuals inspired by cultural elements and global travel themes.

QUO: Every recent trend report on high-end tourism speaks to a growing desire for local immersion, cultural authenticity and enriching experiences.

Is the destination itself set to to play a bigger role in customers’ travel planning?

DK: I’ve been saying for years that in multiple destinations around the world, there’s a huge trend moving away from looking at old historic sites simply because we’re told we should. Instead, there’s a move towards total immersion in the city or village.

A global trend, very common in Bangkok, London and New York, is centred around food. Real local produce. People will no longer settle for ordinary. Travellers are becoming so globalised and well-travelled – particularly high-end travellers – that they know what good quality food is and what an incredible local dining experience entails. This could be a noodle shop on a corner in downtown Bangkok or a tapas restaurant on the outskirts of Madrid.

The experience, complemented by incredible local food and drink, is a trend that’s only going to grow. Initially desired by high-end tourists – who are now reaching outward and following backpackers into more unknown destinations – they’re searching for experiences that engage them with the destination, culture and truth of that place. This multi-dimensional nature of tourism is critical. It’s not just about what to see; it’s about what to feel, what to learn, and what to immerse in. The search for local immersion is not a search for authenticity; it’s a search for truth. Destination branding is key to showcasing these unique, multi-faced travel experiences.

QUO: A destination could be anything from a sector of a city to an area of coastline or even an entire country. How does QUO approach the branding of such complex and multi-faceted entities?

DK: I think that if you take the Saudi Arabian context – which is a lovely example – or the Bhutanese, Sri Lankan, Maldivian contexts, or even somewhere like London, our approach is entirely individualised. The range of our experience and the depth of all our travels is possibly our biggest asset, and our greatest knowledge point and inspiration. We’re able to look at Bhutan as a country or Nine Elms as a dynamic borough of London, and crystallise the simple truths of the place by thinking of it as a dynamic human culture.

I often use the metaphor of a village on a hill. The visitor enters and is enraptured by a multitude of cultural points of reference – how they are greeted, the scent of the place, the rituals, its architecture, the way food is prepared, how people treat one another. Everywhere has these elements, whether a small part of a town or an entire country. Our job is to clarify them and shape them into what they would mean to a guest, a visitor. How do we want them to feel? We translate that emotion into something tangible, which we can then transmit so that our clients are able to leverage and build upon. Effective destination branding involves capturing and translating these truths into powerful narratives that resonate with visitors.

QUO: What winning conditions are needed for a destination to successfully brand itself?

DK: Truth. A sense of definition. A sense and understanding of the people. I believe all cultures have immense good within them, and all places have their own sense of hospitality. Their reason for human connection is real – if we can distil that reality into a format that we can transmit like any other brand, then we can clarify the greatest assets that destination has. For successful destination branding, it’s essential to focus on authenticityand the unique story a location has to tell.

QUO: The pandemic has fundamentally changed tourism dynamics. Where is the impact most felt, and what can destinations do to be more appealing to post-Covid global travellers?

“Visitors are enraptured by multiple cultural points of reference – how they are greeted, the scent of the place, the rituals, its architecture, the way food is prepared, how people treat one another.”

DK: I’ve said this for a long time. I believe the pandemic – while it obviously had short-term tragedy and drove short-term change in how we travel – has had a much more dramatic impact on the longer-term perception of travel. Our learning is that life can be short, and because of that, just following the well-trodden trails that people historically went upon to find relaxation or enrich themselves doesn’t feel enough anymore. The pandemic has been a catalyst for a deeper human need to engage, that need for human connection – but without the crowds.

I’m here in Amsterdam and I commend the authorities for limiting mass tourism and restricting the number of hotels being built to control the number of visitors. I think that trend will probably expand. We will see a greater need for humanity to discover, explore, and experience rather than just sit on a beach or visit an ancient architectural site. People will want to immerse themselves more in a destination, living more like locals, eating like locals, and walking around easily and safely. The learnings mankind has taken from this period highlight that the yearning to learn more and understand different cultures – by living in them – is greater than it’s ever been.

Collage featuring cultural elements for destination branding: Chinese red lanterns, a portrait of a girl adorned with chilli pepper chains, and an Indian celebration with orange flowers and frankincense.

QUO: How can an at-risk destination with a fragile ecosystem or a deeply preserved local culture and community balance the need for tourism growth with sustainability and preservation?

DK: Without being greedy. We must balance the responsibility of a destination to share its culture while ensuring that local populations and heritage are preserved and not homogenised. It’s a complex issue – more proactive actions should be taken to enrich the simple aspects of living a human experience there, rather than overwhelming local tourist attractions. This approach should pay dividends. Effective destination branding can help achieve this balance, ensuringtourism growth aligns withsustainability and cultural preservation goals.

QUO: Where is a dream destination for you to work on?

I think of Sri Lanka. Despite suffering decades of political and economic disarray, it always seems to find a way to bounce back. I think it’s been misrepresented as a tourist destination when, in fact, on a relatively small island, you’ll find an incredible richness of culture in all its forms – historic, geographic, social, culinary, and the people. It has so much to give to the world, so much knowledge to share.

That’s the crux for me when it comes to the art of destination branding. For all types of tourists – particularly those well-travelled – the need we have is to gain knowledge. The need to learn more from cultures will become even greater for all of us. Through human connection, seeing, experiencing, eating, drinking, walking. All these experiences enable us to learn more. That yearning for knowledge is why we should expand our travel wisely. We should visit places we might have historically overlooked because there wasn’t a fancy hotel, but the trade-off is the invaluable knowledge we can gain.

Outperforming the OTAs: Harness the Power of Digital

Imagine a world where your ideal customers leave your property thrilled, return home and recommend you to all their friends and who thinks of you immediately when it’s time to book their next vacation. Sound too good to be true? It’s not.

Give your customers what they want online, make them feel important, leave a great impression of your brand, and they’ll spread the word to friends and family.

Your website is more than a pretty place to drop your logo and testimonials – at least, it should be. It has the potential to be your primary business development channel. Stay with me and I’ll share how you can take your site from place-filler to place-to-be.

First, a hard, cold dose of reality: more than half of website visits are made by bots, and a third of the money you pump into online ads goes to fraudulent companies lying about their statistics. Furthermore, half of online ad impressions in 2016 were never seen by human eyes, and – despite all this proven data – Expedia and Priceline still spend over US$8 billion a year in advertising.

Are you scandalised yet?

How are you supposed to develop your online business in these circumstances? The answer is that you need a trusted guide to navigate the myriad challenges and complex landscape of digital.

Fortunately, there are simple things you can do to reduce the complexity and realise the full potential of your website. The first, and most basic, is to make sure you and your visitors are secure from hackers by installing an SSL if you haven’t already. An SSL certificate ensures the safety of your most important asset – your guests. Without one, don’t even think about asking for the personal details or credit card information you need to maximise the potential of your site as a sales portal.

Second, your most important asset, after your guests, are your website visitors. They are already interested in your brand, but are you doing everything in your power to capture their direct engagement and convert them? My second suggestion is a strong conversion rate optimisation, or CRO, plan to get the most from your site visitors – ultimately turning them into guests and long-term advocates.

The third, and perhaps most important, thing is reading, understanding and harnessing the power of your own statistics and numbers. Accurate reporting of the right data is critical to pinpointing performance flaws and identifying opportunities.

Lastly is something that many business owners don’t like to hear: you must consider high-quality SEO services as a long-term strategic investment. If it helps, think of SEO and PPC as two equal line items in your traffic budget, one ushers in traffic organically while the other delivers traffic you’ve paid for with each click. In the end, SEO may prove the better investment, you pay for it once and the impact is long term. In the long-run, this expenditure will pay off for your business.

Playing with the big boys

Online travel agencies, or OTAs, are here to stay and have become the singular selling strategy for many brands. The services they offer to consumers are indisputable: a wide array of options, convenience, brand recognition, and competitive prices are among them. But they don’t have to own the guest experience.

By building a direct relationship with your guests – one that gives them a monetary and emotional reason to go to your site directly – you can bypass the big boys.

Begin by offering a best-price guarantee or other benefit for direct booking. Depending on the personality of your property, that could be an upgraded breakfast, a bottle of wine in the room on arrival, or a free 30-minute cooking course. Offer them rewards for coming directly to you rather than one of the big-name booking sites.

Next, develop a customer-relationship management, or CRM, strategy that starts the  moment one of the internet’s 4.2 billion users lands on your site. Do you have a game plan for mobilising engagement through your site; a way of ensuring the visitor experience is positive; and a plan for developing a long-term relationship with your new visitor? Without these, you can’t maximise the monetary potential of your site.

Finally, once you’ve pulled your site visitor in via your website and they’ve tried your property, incentivise future bookings from guests’ friends and family through your site via post-visit contact. Offer a future free night for a referral or discounted packages for birthdays and anniversaries – anything that works for your property.

In the long-term, your marketing and revenue teams will need to learn and develop new skills to manage and maximise the ever-changing and growing online travel market.

But you probably also need expert help in the fields of SEO, CRM, CRO, and data analysis. What are the most challenging parts of your online business? Drop me a line at brian.anderson@quo-global.com and I’ll see how we can help you. You can also give me a call on +66 2260 9494 ext. 128.

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QUO REPORT: Vietnam Rising

FACTORS SHAPING ASIA’S MOST EXCITING MARKET

All pundits are in agreement: the Vietnamese tourism industry is on the up in a big way. Vietnam has remarkable potential for growth – both in terms of tourist interest and projected revenue.

Last year, the United Nations World Travel Organisation (UNWTO) listed Vietnam among the top 10 fastest-growing tourist destinations. Jones Lang LaSalle also cast a vote of confidence, listing Ho Chi Minh City and Hanoi among the 26 most attractive cities for hotel investment worldwide.

But what is the word on the street? It’s easy to say ‘invest in Vietnam’, but the potential for growth is more nuanced than that. To take a closer look at what’s happening in the Vietnam market, and what might transpire within the next few years, QUO spoke with some of the country’s most prominent hospitality insiders.

Here are some of the key thoughts from the discussion.

  • Vietnam should be ranked higher in terms of potential growth. Vietnam offers fantastic opportunities for hotelier and investors, as hotel numbers are still low compared to other Asian tourism hotspots.

“I believe Ho Chi Minh City and Hanoi should be in the top 20 or 15 most attractive cities in the world for hotel investment,” said Michael Piro, COO of Indochina Land, real estate division of Indochina Capital. “If you look at other Southeast Asia countries like Thailand, Malaysia and Singapore, the number of hotels in Vietnam is still very small.”

 Jung Hyun Oh, GM of Novotel Ha Long Bay agreed. “The ‘next big thing’ here should be much more investment right across the country: Phu Quoc, Dalat, Nha Trang, Mui Ne need more luxury resorts, and Hanoi and Ho Chi Minh City need mid-scale brands.”

  • The luxury market may not be that attractive to investors. There are certain areas where luxury hotels are in short supply, but overall, it’s not the most profitable market in the country.

  “In Hanoi, there is still room for luxury products, but in general, this sector is not very attractive to investors in term of profitability,” said Olivier Do Ngoc Dung, Managing Director of Dynasty Investments. He remarked that the most interesting sector was that of international-standard budget hotels, currently only seen in HCMC and Hanoi. He also believes in the potential of coastal town Ho Tram, where Dynasty Investments last year signed a partnership agreement with Club Med.

  • The mid-scale market is promising, and could put pressure on luxury brands.

“You see local products with lower quality, but you rarely see internationally-managed, affordable luxury products,” said Michael. “I think the ‘affordable luxury’ concept is going to put pressure on 5-star hotels – it will change the market.” The big players will try to create similar brands, he said, or try to buy local brands to fulfil the affordable niche. “Local operators will also change, as you can start to see at Silverland and Liberty.”

  • Tech will play a role, but not a crucial one. Vietnam has some catching up to do in the tech sphere – will this be a problem in an industry increasingly turning to technology to individualise services?

“I don’t believe that much in the interruption of the artificial intelligence that people are talking about,” said Olivier. “In a country like Vietnam, small or boutique hotels are defined by culture and service. Travellers want human contact, so artificial intelligence will not be a threat. Regarding advances like mobile apps – now that OTAs dominate the market, I’m not sure if mobile applications for checking or planning the whole stay are right for small hotels.”

Michael, whose new project Wink Hotels will embrace technology, explains the millennial attachment to tech. “Today’s travellers want almost everything on their phone. Everyone now has their own Netflix, Apple music, Apple TV, Apple whatever and are now travelling with their own personal content. Everything is being streamlined to automatic devices.” For this reason, Wink will make it possible for guests to easily stream content from their phone to the in-room TV.

On the operations front: “Most hotel experiences that used to be handled by people can now be taken care of by technology,” he said. “There will be greater initial investment in hotels, but lower operating costs over time, because what you used to need 100 people to do, now you can do with 20.”

  • Design should play a more prominent role. While local brands strive to reach international standards, Western travellers are still looking for something authentically local.

“One thing we’re seeing now is that people are looking for hotels with personality. ‘Can I stay somewhere where I can experience something unique? Can I experience something that would create good memories about this place?’” said Luis Riestra, Cluster Director of Sales & Marketing, AccorHotels.

Olivier also believes there’s room for innovation in design – both from an aesthetic and a practical standpoint. “New builds and renovations can incorporate open floorplans, co-working spaces, workout facilities, bars and cafés – all of which are especially appealing to the much-sought-after millennial traveller.” There are some brands in Vietnam already doing this, he noted, such as Kafnu by Next Story Group.

  • Vietnam has changing traveller demographics that will influence the local hospitality scene. New markets such as China and India have for the moment replaced Western visitors as the main source of inbound tourism.

“There should be a re-thinking of the products and service offerings for those customers,” said Olivier. He noted that international guests’ behaviours have changed dramatically in the last few years. South Vietnam used to be seen as a cheap destination – mainly backpackers and recent graduates, but is now attracting higher spenders with more time for leisure and lifestyle experiences.

It should also be noted that Vietnam is hoping to increase the average tourist spend up to US$1,080 by 2020. Vietnam Airlines’ direct flights to Paris, Frankfurt and London and the US (from late 2018) may see traveller numbers from the West increase.

  • International hoteliers should not underestimate local players. Even though Vietnam is still catching up to the West, this is not necessarily a disadvantage.

“Don’t think ‘Oh, Vietnam will take years for that.’ Every day, people become better and faster and smarter,” said Michael. “There is so much money-chasing in Vietnam real estate right now, especially in the hospitality sector, it’s going to force innovation, because to be competitive to survive in the market, you have to be innovative.”

“So how should hotel owners and operators react? I would say ‘watch what’s going on and keep up, stay curve’.”

  • Overall, the success of the Vietnamese hotel and travel industry will be a ‘team effort’. Everyone sees the country’s potential, so interest is coming from a range of sectors.

  “Local owners and operators are really waking up to the opportunities on offer in their own backyard,” said Catherine Monthienvichienchai, Strategy Director at QUO. “There is huge optimism about the future of hospitality in Vietnam, and everyone wants a piece of it. Business owners who’ve made their money in other industries see it as a point of pride to diversify into hospitality; almost to showcase their success.

“Meanwhile, we’re seeing a wave of second-generation owners taking over with a much bigger and bolder vision – many have lived or travelled extensively overseas and have a clear understanding of the international landscape. Whether they create their own brands or work with international operators, they aim high and move fast.”

For periodic market updates, add the QUO blog to your bookmarks list – or subscribe and get all our news. 

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Bangkok: The Future of the World’s Most Visited City

In 2017, Bangkok was the most visited city in the world for the second consecutive year, according to the Mastercard Destination Cities Index.

The capital of Thailand has transformed into a megacity, a status confirmed by large-scale urban redevelopment and massive infrastructure projects.

The 50 billion baht (USD $1.5 billion) Icon Siam development is changing the skyline on the Thonburi side of the Chao Phraya river and will be the first project to integrate road, rail and river transportation. The BTS and MRT public transport networks are rapidly expanding, with the MRT Blue Line extension further opening up Thonburi while the BTS line to Don Muang airport will alleviate the delays and frustrations caused by traffic gridlock.

Other massive redevelopments underway in the Big Mango include One Bangkok, a 16-hectare mini-metro next to Lumphini Park, and the Grand Rama IX super tower, which at 615 metres will be one of the world’s tallest buildings and an unmissable landmark when complete. And these projects are just the beginning of Bangkok’s megacity makeover.

But what exactly is a megacity and how does Bangkok compare with other global urban conglomerations? Those questions and many others will be answered at the 2018 Thailand Tourism Forum (TTF), the country’s biggest annual hotel event. The 2018 TTF spotlight will shine on Bangkok and speakers from some of the largest Thai conglomerates will discuss Bangkok’s future growth in new districts as well as the reinvention of historic areas.

QUO CEO David Keen will moderate a TTF panel discussion about Bangkok’s brand and how the new economy will shape perceptions of the city. David will be getting the opinions of some highly respected names in the local hotel and development industries including Ingo Schweder, CEO at GOCO Hospitality; Thomas Schmelter, IHG Group’s Director of Operations for Thailand & Indochina; and Cobby Leathers, Head of International Business for Sansiri PCL.

Organised by the American Chamber of Commerce, TTF 2018 is a unique opportunity to hear Thailand’s hotel and hospitality heavyweights candidly discuss the economy, growth and other issues affecting tourism. Attendance at TTF is complimentary but advanced registration is required.

Date: Monday, 22 January 2018

Venue: Grand Ballroom, Level 4, InterContinental Hotel, Bangkok.

Registration: Send an email to TTF@amchamthailand.com or visit AMCHAM website

For more information and to register, go to www.ThailandTourismForum.com