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'India can totally dominate global tourism market'

It is not easy to be Sami Zoghbi. Especially not after the September 11 attacks, with the world economy grinding to a screeching halt and severely impacting the entire travel and hospitality industry.

Global management consultant PricewaterhouseCoopers estimates that the post-World Trade Center slowdown might cost hotels billions of dollars in revenue this year alone.

Hence, renovations have been shelved, construction projects dismantled, services trimmed and employees laid off.

All hoteliers, in short, are in extreme disarray. But tell that to Zoghbi - who has recently taken over as Managing Director of Le Meridien's Indian Ocean, Middle East and Africa region - coming in from a 35-year stretch with Starwood International Hotel Company.

He bears the mantle of his responsibility very proudly, completely unperturbed by the implications of his directive from Meridien - to double the region's portfolio by 2004, no mean task even under normal situations.

While in Mumbai for a brief visit recently, Zoghbi spoke to
Anubha Charan about why he refuses to give up on the industry, and the plans that he has for India.

Can you briefly trace the recent transfer of Le Meridien's ownership for us?

Le Meridien was established as a luxury hotel in 1972 by Air France for its clientele. The first property was in Paris - Le Meridien Etoile. In late 1994, the chain was acquired by UK hotel giant Forte, which was in turn acquired by the Granada Group in 1996.

In the summer of 2000, a merger between Forte's parent company Granada Group and global contract catering giant Compass Group - and the subsequent merger of the two companies in February 2001 - saw the ownership pass solely to Compass Group.

Finally, in July 2001, Compass Group sold Le Meridien Hotels to Grand Hotels Acquisitions Co. Ltd., a company formed by the Principal Finance Group of Nomura.

And then there is the alliance with Nikko Hotels…

Le Meridien entered into an international agreement with the Japanese-owned Nikko Hotels in April 2000. The agreement is a marketing an promotion-based understanding, whereby both chains will actively sell each other's properties across the globe and would offer special rates to guests wishing to include room nights of both chains in their itinerary.

Nomura has made it very clear that it wants to position Le Meridien as a premier luxury hotel. Individual 'boutique' hotels, however, dominate this niche. Can a company-owned chain hotel really gain that sort of prestige and success?

What today's consumer wants is a quality product - something that is a little more than the usual offering on the market. That is where these individual, boutique hotels score.

But a chain like Meridien has the massive advantage of location - with 125 hotels in 55 countries, we can offer an unparalleled global portfolio. The prime driver in 90 per cent hotel choices is the location, then the service.

A boutique hotel is limited in this sense. If we build on this, combining it with individual style and service for every property, there is no reason why we cannot have the same kind of success.

So how are you going about it?

For starters, we are introducing a concept called Art and Tech, which is designed to offer the ultimate in innovative luxury. The rooms will have the most modern technology -- like 42-inch plasma screen TVs, electronically controlled beds and the latest in shower technology, mood-controlled colored gel lighting, edge-lit handcrafted etched glass panel headboards and so on.

The themes will revolve around backlit paintings specifically commissioned for each property, depending upon the individual building and the culture of the region, so that every hotel retains its individuality.

The first of the new rooms will be opened at the Russell Hotel in London.

What will be the artwork and themes for India be like?

That is what this visit to India is all about. I have to meet with the owners of the various properties and map all this out with them - the plans, the financials and so on.

Suppose some of the owners are not interested in the concept, what will be the company policy?

We will not be forcing anybody to do anything. It is an open discussion. The final decision rests with the owners; we will only make the suggestions for improvements that benefit everyone in the long run.

All that we require from the owners is that they maintain the universal high standards that the chain is known for. It is a matter of understanding. Meridien has announced plans of launching one hotel every two months, along with these extensive renovations.

Post-September 11, however, the hospitality industry is extensively cutting costs and shelving all renovation and construction projects. Are your plans feasible in such a scenario?

There is really no option. We have just bought the business, and have to build it, so that we are ready to catch the upswing when it happens.

This, in fact, is the best time to develop a hotel since occupancy levels are low. Then, by the time it opens, the industry will be coming back. Too often hotels are developed at the top of the cycle, loosing clientele since they have to shut down operations and block rooms.

What has the aftermath of the World Trade Center attacks been like?

There has been almost 90 per cent loss from international tourism, and almost 50 per cent from business travel. The domestic market, however, has been on an upswing, since people feel safer traveling within their own countries.

But the luxury hotels cannot be sustained on the domestic market alone. It will take at least 2-3 years for things to settle down.

What are the projections for India?

There is one hotel that will open at Juhu in Mumbai next year. Besides that we will be looking for at least 4-5 properties, including heritage properties that are smaller and more exclusive.

There are also plans to bring Grosvenor House - our most exclusive brand - to the country very soon.

Does India have the potential to sustain such growth figures?

I have always held that India has barely scratched its tourist potential. It has such a rich and diverse culture and beauty that it can completely dominate the international tourism market.

Being not too far away from Europe, it can attract enormous traffic from there. But it is being held back because of things like poor infrastructure and closed skies.

Countries with far lesser potential have done it - countries like China.

We intend to market India as a destination internationally, and tell the government about the visible and hidden earnings from tourism - everyone benefits, from the taxman to the taxicabs and souvenir shops.

The day they realise this, India will be at the pinnacle of global tourism.

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