Hospitality Food Service, Tourism Heading Into Headwinds?

Shelter, food, water, clothing. These are the basic needs that we need to survive. Of course, if one can afford to travel or eat out, it’s more likely than not that one’s basic survival needs are well taken care of. However, as we travel, we depend on others to fulfil those needs – to varying degrees of adequacy.

- Ong Xiang Hong

The concept of hospitality, which refers to the relationship between a guest and a host, has been around since the first human sought to be a traveller. Cultures across the world abound with tales of poor families entertaining lone travellers with whatever little they have, only to be handsomely rewarded for their hospitality when their guest turns out to be an important figure.

Of course, modern hospitality now is more associated with etiquette and entertainment than a matter of survival. Hotels and F&B outlets cater to customers with leisure time and disposable income, who are looking for new experiences. The modern traveller is probably not looking to drop uninvited into a peasant’s home – instead they are seeking out refined experiences commensurate with their budget and expectations of contemporary customer service.

In response, the hospitality industry has come up with unique, innovative offerings tailored to the customer’s desired experience. But it is not easy for established hospitality industry players to break the cookie-cutter mould that defines hospitality chains throughout the world. And the increasing democratisation of information has laid bare their shortcomings with review websites available to all with an Internet connection. In this issue, SME explores the challenges and opportunities of an evolving hospitality, food service, and tourism industry.

HOTELS – INNOVATE OR PERISH

According to the UN World Tourism Organisation, in 2017, Malaysia was the fifth most visited country in Asia Pacific with 26 million tourist arrivals. However, this fell short of the Government’s initial target of 31 million tourist arrivals. Despite this, the Malaysian hotel sector has seen several high-profile hotel openings in the period ending 3Q 2018, including Banyan Tree Kuala Lumpur, Sofitel Damansara, and Element Kuala Lumpur by Westin.