Hotel

Modernizin g Lebanon’s Classificatio n System

Prepared for the National Tourism Council of Lebanon April 2000

and the Ministry of Tourism

Meeting Overview

Meeting Overview

Introduction

Background

Proposed

Proposed

and

Approach:

Approach:

Analysis

General

Hotels

Proposed Approach:

Implementation

Tourist Residences

Discussion

SRI International

Why This Study?

Introduction

General Need

Current Urgency

Revealed need by tourism industry (interviews, cluster group, conferences, etc.)

New hotels want to be classified according to international standards. Domestic hotels want guidelines for how to improve facilities to compete with new international hotels and/or how to reposition themselves in the market. Upcoming European loan for hotel reconstruction-hotels want to know type of facilities to include.

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Study Process

Introduction

Revealed Need

1/99-10/99

Int’l Practices / Trends Research

11/99-1/00

Initial Presentations, Consultations Revealed need with Ministry, Council, Private Sector

1/00

Proposal Drafted

1/00-2/00

Proposal Reviewed

2/00-4/00

Revisions / Adoption

Current

Implementation

4/00SRI International

Meeting Overview

Meeting Overview

Introduction

Background

Proposed

Proposed

and

Approach:

Approach:

Analysis

General

Hotels

Proposed Approach:

Implementation

Tourist Residences

Discussion

SRI International

Background and Analysis

Purpose of Classification Systems Informational

Developmental

(focus on consumers)

(focus on developers)

• Helps make comparisons between different hotels

•

High standards encourage owners/managers to maintain and improve their properties (low standards = low quality product)

•

Helps owners/managers maintain pulse on market trends

• Gives tourists (particularly first-time visitors) idea of accommodations to expect • Used by travel agencies/operators to identify and market lodgings to consumers

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Classification Types Infrastructure

Background and Analysis

Where

Traditional systems, prevalent in developing countries

Service/Quality Started in Europe, more prevalent world-wide

What

Mostly infrastructure features

Quality of infrastructure, type of services

How

“Objective” criteria

“Objective” and “subjective” criteria

Example

Benefits Drawbacks

Five star hotels requirements: - 200+ rooms - 3 pools - lobbies of certain size - easy to inspect - helps guide investment decisions - favors large, international hotels Does not encourage property maintenance, not focused on customer preferences

Objective: availability of 24-hour room service Subjective: quality of bedroom furniture, frontentrance maintenance -highlights high-quality, smaller establishments -keeps high quality product -helps customer satisfaction Subjective criteria harder to evaluate SRI International

Trends in Classification Systems

Background and Analysis

•

•

•

Move to Quality Standards Market research reveals customer association of class with quality more than with amenities Help improve and promote quality independent hotels (chains do not need as much promotion) Help spread knowledge about service standards among non-chain hotels

Private/Public Partnerships • Quality evaluations require deeper industry knowledge --evaluators consultants, not policemen • Government helps set rules, knowledgeable private consultants evaluate -- more responsive to industry trends

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Background and Analysis

How Does Current System Work? Confusing Categories - Many categories, not responsive to industry developments - hotel de residence vs. furnished apartments - Categories unique to Lebanon don’t serve tourist informational purpose

“Over Classification” - Food/drink establishments, pools, campgrounds, not generally classified - Don’t serve tourist purpose - Attention diverted from hotels/apartments (95% of lodging)

Problems Over Specificity of Rules

Confusing Rating System

- Too specific, burdensome, deprive originality

- International, 4-star A, 4-star B, 3-star A very confusing

- Broader rules adjust for style and taste

- Most recognized system is standard 5-star system SRI International

Meeting Overview

Meeting Overview

Introduction

Background

Proposed

Proposed

and

Approach:

Approach:

Analysis

General

Hotels

Proposed Approach:

Implementation

Tourist Residences

Discussion

SRI International

Proposed Approach Lodging: Focus on Hotels/Furnished Apartments

Proposed Approach: General

•

•

•

95% of all lodging offerings, others combine for less than 10 units

Food/Beverage:Discontinue Classification

•

Hygiene/security, by other agencies

•

Tourists not guided by ratings -- “walk-in” method

•

Expense fraction of hotels’, “bad experience” not produce same effects

Hotels used by first-time visitors, most important In Lebanon, furnished apartments also important

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Structural Characteristics Both Infrastructure and Service / Quality Criteria Service /Quality:

Proposed Approach: General

Will help Lebanese compete on service, its strength Will highlight smaller, independent, quality hotels Infrastructure: Will guide development of numerous hotels being built/reconstructed Will encourage investment by ones that are not doing it Will help hotels find their new niches, in new hotel market

Private Inspection Government Team Involvement in Setting of Standards Credibility of system depends on inspectors’ industry knowledge Outsourcing to a single organization,fees collected Strong private sector support

Maintains high standards, keeps industry good in mind Tradition of government involvement in Lebanon Jointly updates standards with private sector

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Proposed Typology

Proposed Approach: General

Tourist Hotels: • Incorporates “International Hotels” & “Tourist Hotels” • Categories simplified to 1-5 stars, no A/B

Tourist Residences: • Incorporates “Residence Hotels” & “Furnished Apartments”-standard term in Europe • 1-5 stars

Other Lodging Types: • Bed & Breakfast, Condominium, Cottage (Chalet), Inn (Auberge), Lodge, Motel, Resort, Historic - Currently not enough properties to develop unique classification for each - Could be classified according to their accommodations • Boarding Houses, Equipped Camps, Youth Clubs - Remain as currently defined - Not worth categorizing SRI International

Meeting Overview

Meeting Overview

Introduction

Background

Proposed

Proposed

and

Approach:

Approach:

Analysis

General

Hotels

Proposed Approach:

Implementation

Tourist Residences

Discussion

SRI International

Proposed Approach: Hotels

How System Was Developed International Classification Standards: Combination of Several Systems • Mainly: Switzerland, WTO, Scotland, France • Also studied: England, U.S., Bahrain, Germany, New Zealand, Mexico, Canada, South Africa, Spain, Syria, Jordan Middle -Eastern Tastes: Important Market

International Hospitality Trends: Evolution in Last 30 years Focus on bedrooms/bathrooms Gyms/business centers

Lebanese Conditions: System Needs to Fit Country

- Large buildings, as in U.S.

- Need for quality/infrastructure standards

- In higher categories, points for high-end restaurants, tennis courts, massage rooms, etc.

- Expandable for more quality standards - Straightforward and transparent - Improve current value/price ratio SRI International

Two-Part System Minimum Standards

Proposed Approach: Hotels

Hotels must meet all of these Standards vary by category Infrastructure based General Standards Point System, hotels collect points according to amenities above minimal standards and quality factors. Hotels need to score a determined number of points according to category -- lower category hotels need less points than higher ones. Hotels must meet requirements under both minimum standards and general point system to be awarded a particular rating. SRI International

Criteria Composition

Guest Leisure and Professional Services

Hotel Attention Services

Guest Accommodations

10%

39%

Proposed Approach: Hotels

21%

Building 30%

Adjusts to urban/rural and leisure / business hotels SRI International

Security General security norms/procedures Night service Fire security Guest protection Employee welfare Price/classification posting

Proposed Approach: Hotels

Security

Comments Security standards mostly the same for all hotel categories

5-Star Concierge outside of door all night

1-3-Star Example

Attendant can be inside, reachable by buzzer/phone SRI International

Public Areas

Proposed Approach: Hotels

Public Areas

Front office service Hotel entrance Reception hall size Temperature Bathrooms Elevators

Phone booths Parking lots

Comments All hotels need an independent entrance and a distinguishable reception hall/service

Example: Minimum Reception Hall Area 5-Star

3-Star

1-Star

60m2

40m2

20m2 SRI International

Guest Rooms

Proposed Approach: Hotels

Guest Rooms

Number of rooms Room dimension Suites availability Handicap accessible rooms Room arrangement Doors

Temperature control Safe boxes/security Habitability Telephone Linen replacement Laundry service

Comments Guest rooms are what most differentiates categories of hotels

Example: Dimension for at least 80% of single rooms 5-Star

3-Star

1-Star

20m2 + 5m2 Bathroom

11m2 + 3m2 Bathroom

9m2 SRI International

Bathrooms

Arrangement Items

Bathrooms

Proposed Approach: Hotels

Comments Percentage of rooms with shower and/or bath is main factor for categorization

Example: Bathroom availability 5-Star All rooms with full bath or shower / WC, less than 25% not full bath

3-Star 90% with at least shower / WC

1-Star Cold / hot water in room, bathroom in the same floor SRI International

Food and Drink Services Food and Drink Services

Breakfast service Drinks service Hotel dining

Proposed Approach: Hotels

Comments All hotels should serve breakfast, all 5-star hotels need at least two restaurants.

Example: Room service 5-Star

3-Star

1-Star

24/24-hour room service, mini bar in all rooms

16/24 hour rooms service, mini bar in room or vending machine in same floor

No minimum requirements

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Facilities Available to Guests

Proposed Approach: Hotels

Facilities Available to Guests

Leisure facilities Business center Restaurants Bars Meeting/conference rooms

Comments No requirements for 1-3 stars 4/5-Star

Fax, Telephone, Internet, Computer, Printer, Photocopier available to guests

Example:

1/2/3-Star

Business Center

No requirements

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General Standards for Tourist Hotels GENERAL STANDARDS FOR TOURIST HOTELS Standards

Possible Points

Interpretation

I. BUILDING CONDITION OF BUILDING

Proposed Approach: Hotels

View/Impression from outside: Facades

-1/+1/+2/+3/+4

Balconies

-1/+1/+2/+3/+4

Shutters and stores

-1/+1/+2/+3/+4

Hotel entrance

-1/+1/+2/+3/+4

External appearance of building will be influenced by the overall maintenance standards. Best marks should be reserved for buildings where paintwork, windows and roof are in good state of maintenance and repair. Attractive architectural features and decorations. Clear, clean signs. Poor or negative mark for poor maintenance, such as flaking paint, illegible signs, etc.

Can receive negative points For some things, you either get the points or you don’t i.e. Separate elevator for staff / luggage + 2 points SRI International

Building

Proposed Approach: Hotels

Building (30% of total points)

Number of points

Condition of building

16

Lounges

14

Restaurant Halls

10

Other Common Spaces

6

Service Elevator

2

Hotel Parking

2 Comments:

Most points based on overall look, quality and upkeep. SRI International

Guest Rooms and Bathrooms Guest rooms and Bathrooms (39% of total points)

Suites / Junior Suites

6 22

Bathroom Condition and Equipment

12 8

Additional Bathroom Equipment

13

Additional Room Equipment

Comments

Proposed Approach: Hotels

Room Condition and Equipment

Number of points

Points are accumulated for offering certain items i.e. 80% of rooms with balcony Points accumulated based on quality factors i.e. mattress condition 1- 4-star hotels can earn points on things 5-star do not i.e. all rooms with bathrooms or shower / WC SRI International

Comments

Proposed Approach: Hotels

Hotel Attention and Services Hotel Attention and Services (10% of total points)

Number of points

Additional Services

3

Additional Catering

15

Services refer to availability of express check-out and evening turnover Catering refers to quality and quantity of bars and restaurants, live music, non-smoking sections note: More and more guests are eating / drinking outside of hotels, these offerings used to be more important than today

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Guest Leisure and Professional Services Number of points

Park Garden

2

Swimming Pool

4 2

Nursery Business / Conference Facilities

14 8

Banquet Halls

3

Leisure

Comments

Proposed Approach: Hotels

Guest Leisure and Professional Services (21% of total points)

Before, 5-star hotels had to have all these amenities Proposed system allows for specialization City hotels likely to have conference facilities, tourist hotels likelier to have tennis courts and other leisure facilities. SRI International

Minimum Required Points Per Hotel Category

Proposed Approach: Hotels

Min. Number of Points

Total Possible Points

Five Stars

135

158

Four Stars

115

162

Three Stars

100

166

Two Stars

88

171

One Star

55

173

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EXAMPLE HOTEL SCORING

Proposed Approach: Hotels

Hotel Scoring Example I. Building Condition of Building Lounges Restaurant Halls Other Common Spaces Service Elevator (for one-four stars) Hotel Parking II. Guest Rooms and Bathrooms Suites/Junior Suites Room Condition and Equipment Additional Room Equipment Bathroom Condition and Equipment Additional Bathroom Equipment III. Hotel Attention and Services Additional Services Additional Catering IV. Guest Leisure and Professional Services Park/Garden Swimming Pool Nursery Leisure Business/Conference Facilities Banquet Halls Intermediate Total Final Total The final number of points (117) is sufficient for a four-star hotel.

Possible Score 16 14 10 6 2 2

Points Earned + Points - Points 12 12 -1 8 6 2 2

6 22 12 8 13

6 16 10 7 12

3 15

3 11

2 4 2 14 8 3 162

0 0 0 6 4 2 119

-1

-2 117

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Meeting Overview

Meeting Overview

Introduction

Background

Proposed

Proposed

and

Approach:

Approach:

Analysis

General

Hotels

Proposed Approach:

Implementation

Tourist Residences

Discussion

SRI International

Proposed Standards for Tourist Residences Methodology Employed: Same as hotels, except less models to draw from: Switzerland, U.S., and analysis done by SCORE based on French model

Proposed Approach: Tourist Residences

International Evolution of Classification Systems: Importance of security norms

International Industry Trends: Becoming more popular for business people

Middle-Eastern Tastes: Residences often used by Gulf tourists

Lebanese Country Conditions: An important part of lodging offering, important to classify SRI International

Structure of Proposed System

Proposed Approach: Tourist Residences

Same as hotels, but no quality/service criteria Consistent with international practices: not usually for first-time visitors

Based on five-star system

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Security and Building

Proposed Approach: Tourist Residences

Security and Building

Comments

General standards and procedures Night service Minimal fire security rules General guest protection Employee welfare Posting of prices/classification Front-office service

Hotel entrance Reception hall Temperature Bathrooms Elevators Telephone booths Parking lots Garages

Security standards mostly same for all tourist residence categories Example: Elevators 5-Star

3-Star

1-Star

For buildings of more than one level; separate service elevator

For more than three levels

For more than four levels SRI International

Apartments

Proposed Approach: Tourist Residences

Apartments

Comments

Minimum size Handicap accessibility Apartment equipment Temperature control Safe boxes Habitability

Telephone Bathroom type and equipment Kitchen type and equipment Apartment cleaning Linen replacement Laundry service

Most important factors for category differentiation

Example: Minimum apartment size (2-person studio) 5-Star

3-Star

1-Star

25m2

15m2

9m2 SRI International

Meeting Overview

Meeting Overview

Introduction

Background

Proposed

Proposed

and

Approach:

Approach:

Analysis

General

Hotels

Proposed Approach:

Implementation

Tourist Residences

Discussion

SRI International

Implementation

Classification Process Step 1 Builder approaches classification team for consultation (voluntary but suggested) Step 2 Builder formally approaches team for classification; file is created Step 3 Unannounced visit to property; manager is contacted for brief informational interview on Property characteristics; Physical evaluation is conducted, accompanied by manager Step 4 Team provides manager written summary of inspection and rating decision Step 5 Hotels re-evaluated annually, tourist residences every three years or upon request -- unannounced visits SRI International

Implementation

Reclassifying Existing Hotels/Tourist Residences

P R O C E S S

Two-year transition period, except for norms affecting building structures Five years for all new standards Some will necessitate new investments Some will reposition to compete under lower category market New standards will help guide, not cause, market realignment process New lodgings should be subject to new standards immediately SRI International

Implementation

Maintaining Classification System Current

   

Keep most as MOT regulation, not law or regulation subject to Council of Ministers Will be easier to make adjustments Inspecting team should have some interpreting power: Should issue a document elaborating on interpretations to maintain system transparent Government, inspections team, private sector should meet once a year to track/address developments/concerns. Incorporate more qualitative criteria as domestic industry evolves -Lebanon not yet ready for highest standards, but system is easily expandable Decide whether/how to categorize other lodging types Too early to develop norms Some countries don’t categorize them, some use hotel standards as basis, others develop standards specific to each property type



SRI International