By Brandon Graham, VP of Development
In the dynamic hospitality industry landscape, hoteliers are always looking for ways to broaden their scope and penetrate emerging markets. Yet, the ability to understand and negotiate intricate local government processes and to secure their backing can significantly determine the success of their expansion efforts.
Building solid relationships with local municipal authorities is crucial for hotel developers entering emerging markets. Developers gain valuable insights into the bureaucratic processes of acquiring permits, licenses and ensuring compliance by forging connections with key decision-makers. These relationships foster smoother operations, saving time and resources that would have otherwise been spent navigating complex legal frameworks.
When networking with influential decision-makers, there are several crucial aspects of your project you should emphasize.
Showcasing Economic Development Potential: When presenting your hotel project to local authorities, it is essential to emphasize its potential for economic development. (Save the discussions about RevPAR, ADR, occupancy, and brands for other hoteliers.) Highlight the direct and indirect financial benefits the project will bring to the community, such as job creation. Of course, hotels play a pivotal role in job creation, particularly in emerging markets where employment opportunities are highly sought after. Demonstrating how your hotel project will generate new jobs and provide training opportunities for the local workforce will resonate with local authorities. Additionally, emphasize how these employment opportunities will enhance the quality of life for community members, fostering a sense of pride and ownership within the local population. By outlining the economic opportunities that arise from hotel growth, developers can garner support from local authorities who seek to boost their region's prosperity through strategic investments.
The Domino Effect: Impact on Other Sectors: Hospitality has a ripple effect on various sectors of the economy. Hotels attract tourists, stimulating growth in ancillary businesses. For instance, restaurants tend to thrive in tourist-heavy areas, as visitors need to eat, and the availability of diverse dining options is often a key consideration for them. Retail outlets, similarly, usually see a boost in business due to increased tourism. Visitors typically want souvenirs, clothing, or other goods, which drives demand for retail items. The domino effect also extends to local attractions, such as museums, parks, historical sites, and entertainment venues. By highlighting the domino effect of hotel development on other sectors, developers can showcase the long-term economic benefits that extend far beyond the immediate revenue generated by the hotel itself. This holistic approach to economic growth creates a sustainable ecosystem that benefits the entire community.
Aligning with Broader Community Goals: To secure the support of local authorities, developers must articulate a compelling vision that aligns with the community's broader goals. (If you need to know what they are, use your newly established connections.) You can also better understand a community's needs by conducting interviews and surveys and analyzing existing data. Highlight how your hotel project will contribute to the overall development plan of the region, whether it's through environmental sustainability initiatives, preservation of cultural heritage, or support for local entrepreneurship. Communicate the project's commitment to positively impacting the community's well-being, showcasing its potential as a catalyst for positive change.
The importance of local municipal support in hotel development cannot be overstated. Building solid relationships with local authorities is crucial for navigating bureaucratic processes, connecting with key stakeholders, and gaining community support. By showcasing the economic development potential, job creation, and positive impact on community life, hotel developers can make a compelling case for their projects. Moreover, emphasizing the domino effect on other sectors and aligning with broader community goals establishes a vision that resonates with local authorities and secures their support.
Together, hoteliers and local municipalities can unlock the growth potential of emerging markets, fostering sustainable and holistic economic development for years to come.