Mubasher: High staff turnover has become an issue for Dubai’s hoteliers, with increased competition for experienced staff and influx of new supply, according to hotel asset management specialist TFG Asset Management.
Dubai’s hotel room supply grew 5% in 2016, surpassing 100,000 rooms for the first time. The emirate currently has more than 20,000 rooms under construction in 69 properties, the latest data from industry analyst STR showed.
Hotel staff turnover in Dubai currently averages 25-30% per annum.
A 30% percent turnover rate could potentially reduce a hotel operator’s gross operating profit (GOP) by AED 6 million ($1.63 million) per annum.
“The challenge facing Dubai-based hoteliers to retain their best staff can be immense in the face of increasing competition from new operators entering the market and the expansion plans of existing rivals,” according to Mariano Faz, head of TFG Asset Management.
“A better approach is to consider a potential candidate based not only on their experience, but their attitude and willingness to embrace the corporate culture and their perceived long-term ambition to develop their career with the operator.”
