Hospitality Suppliers in KSA during COVID times and beyond

Saudi Arabia is the biggest story in the Hospitality world in this decade. No place in the world can claim projects rivaling the ambitions of Neom, Red Sea, Qiddiya, Al Ula, Amaala, Diriyah Gate and many others which are being planned and executed as you read this article.

A country of 33 million people with thousands of miles of pristine coastline, incredible natural assets and major cultural landmark is a vast opportunity for all segments of the hospitality industry.

No fewer than 160 hotels with 73,325 rooms will open around Saudi Arabia in the near future, according to Top Hotel News. This extraordinary growth spurt is in keeping with the country’s Vision 2030, which aims to build the tourism industry at pace so that it can contribute up to 10% of annual GDP by 2030, up from the current 3%.

Given these numbers, what are the key things every Hotel owner should focus on to reduce project risk and reap the greatest rewards, from initial planning through final project closeout while selecting a FF&E and OS&E supplier?

1) Experience with Brand standards: How experienced is the supplier with your brand standards? Inexperienced vendors may be inefficient and you may lose time with longer submission periods, unapproved samples etc. This may eventually result in delays in opening rooms and cost overflows. What kind of experience does the supplier have with other Marquee projects in the region?

2) Saving Money: A Good supplier would have a validated pipeline of product sources that would meet or exceed the brand expectations while saving money for the owners. They will understand your requirements in detail and research thoroughly before giving you an estimate and a realistic timeline.

Sticking to a budget is one of the biggest challenges facing a hotelier. Delays not only cost money, but they inhibit your ability to sell rooms and bring in revenue.

3)Understanding of Local Laws: With the constant evolving situation of SABER/Change of Customs regulations, it is imperative that the vendor professes the right understanding of local laws to reduce delays and unexpected costs.It is surprising to see how many projects have had delays due to improper understanding of this basic criteria.

4) Strong Sourcing Team: Today sourcing it is truly global, and even a domestic vendor relies on a global supply chain for raw materials and component parts.

When an unpredictable weather or natural disaster like COVID 19 occurs,the whole supply chain is affected. The supply chain ramifications are vast and often long lasting. The supplier must be able to respond to weather problems, as well as the constantly changing business risk, currency risk and political risk throughout the world.

5) Sustainability: Using sustainable materials is only part of producing sustainable furniture. Responsible manufacturing practices matter just as much and have a great impact on our planet. What steps will your supplier take to make them more environmentally friendly?

6) Quality Check: Does your supplier have a Quality team at sourcing location to inspect the products before they are shipped? This step is very important especially in the case of Custom Furniture to reduce quality issues to the minimum.

7) Installation and Warehousing: Does your supplier have a local team to manage the installation and have a space for warehousing the products if the need arises? Needless to say, unprofessional installers will add to the cost of the project.

Procurement decisions will have a dramatic impact on your hotel’s budget and success.At BAS Global Investments, we hope that this article will help you more effectively evaluate vendors by giving you step by step support.

#hospitality #saudiarabia #saudi #riyadh #jeddah #welcometoarabia