Exploiting Algeria's Tourism Potential: Strategies to Transform the Subsidiaries of the Hotel, Tourism, and Thermal Group GHTT

With its rich cultural heritage and natural beauty, Algeria is a country brimming with untapped tourism potential. Standing at the forefront of this opportunity is the Hotel, Tourism, and Thermal Group (G.H.T.T.), which comprises 17 subsidiaries managing over 40 hotels and thermal resorts. These establishments include prestigious hotels like "Hotel Albert 1er," "Hotel Rais," and "Hotel Mercure Algiers," as well as renowned thermal baths such as "Hammam Bouhdjar" and "Hammam Salhine in Biskra." They offer more than 2,000 rooms and employ over 2,500 staff members.

However, many of these infrastructures, dating back to the 1970s, suffer from neglect, outdated facilities, and poor service quality, as evidenced by negative visitor reviews. To unlock the immense potential of these establishments and elevate Algeria's status as a leading tourist destination, we propose two comprehensive strategies:

1. Strategic Investment in Infrastructure Renewal

a. Comprehensive Renovation and Reconstruction

Allocating a substantial and well-planned budget is crucial for renovating or completely rebuilding existing hotels. This investment should be guided by comprehensive feasibility studies aligned with international hospitality standards. The goal is to develop world-class 3-star and 4-star hotels and, where possible, establish 5-star establishments that meet global expectations.

• Case Study: Tourism Development in Morocco

b. Leadership with a Clear Vision

Appointing a new generation of leaders with expertise in international hospitality management is essential. These leaders should possess a clear vision and strategy focused on service excellence, customer satisfaction, and sustainable practices.

• Best Practices: Public-Private Partnerships

c. Commitment to International Standards

Implementing global standards in service quality, safety, and sustainability is non-negotiable. Certifications from organizations such as the International Organization for Standardization (ISO) and adherence to guidelines from the World Tourism Organization can enhance credibility.

d. Digital Transformation

Developing modern, user-friendly websites and mobile applications for all establishments is crucial. These platforms should provide virtual tours, real-time booking systems, and multilingual support to meet the needs of a global audience.

• Statistic: According to industry statistics, 83% of travelers book their accommodations online, highlighting the importance of a strong digital presence.

e. Marketing and Promotion

Strategic marketing campaigns targeting local and international tourists can significantly increase visibility. Participation in international tourism exhibitions and leveraging social media platforms can enhance Algeria's image as a desirable destination.

2. Embracing Transparent Privatization

a. Developing Comprehensive Tender Documents

Creating detailed "Terms of Reference" is the first step toward privatization. These documents should outline the requirements for renovation, service standards, developmental goals, and compliance with international norms.

b. Transparent Tender Process

Launching open calls for tenders to local and international investors ensures a competitive environment. Long-term leases of 50 to 100 years can attract investors willing to commit substantial resources.

• Success Story: Hotel Privatization in Egypt

c. Regulatory Oversight by the Ministry of Tourism

The ministry should act as an auditor to ensure transparency and integrity in the privatization process. Establishing a professional inspection team to conduct regular evaluations ensures continuous compliance with established standards.

d. Empowering the Private Sector

Privatization transfers the responsibility of employee management and operational costs to the new owners, reducing the financial burden on the state. The private sector's pursuit of profitability often drives innovation, efficiency, and improved customer service.

e. Enhancing Accountability Through Customer Feedback

Implementing a robust system for collecting and analyzing visitor reviews can drive continuous improvement. Encouraging guests to rate their experiences provides valuable insights and holds establishments accountable.

• Example: Online platforms for hotel and restaurant reviews have become critical in the hospitality industry, with 96% of travelers considering reviews important when booking accommodations.

Economic and Social Impact

a. Increasing Tourism Revenue

By revitalizing these establishments, Algeria can significantly boost its tourism revenue. Currently, Algeria receives about 2.4 million tourists annually, a modest figure compared to Tunisia's 9.4 million and Morocco's 13 million. Bridging this gap could inject billions into the economy.

• Projection: If Algeria increases the number of tourists to 5 million, with an average spending of $500 per tourist, this would generate an additional $1.3 billion in revenue.

b. Job Creation and Economic Growth

An active tourism sector can lead to the creation of direct and indirect employment opportunities, stimulating local economies in the regions where these establishments are located.

• Statistic: The World Travel & Tourism Council states that for every $1 million spent in tourism, 50 jobs are created.

c. Regional Development

Improved hotels and thermal resorts can become catalysts for regional development, attracting businesses, improving infrastructure, and enhancing the quality of life for local communities.

d. Reducing Government Expenditures

Privatization reduces the social cost to the state by transferring employee salaries and benefits to private entities. The saved funds can be redirected to other vital areas such as education and healthcare.

Addressing Concerns About Privatization

Despite concerns about privatization due to past negative experiences, a structured and transparent approach can mitigate risks.

a. Learning from Past Mistakes

Analyzing previous privatization efforts to identify shortcomings can guide better practices. Establishing strict regulatory frameworks and accountability measures is crucial.

b. Engaging Stakeholders

Involving employees, local communities, and industry experts in the planning process ensures that the interests of all parties are considered.

c. International Best Practices

Adopting models from countries that have successfully privatized in the tourism sector can provide valuable guidance.

• Reference: The privatization of hotels in the Czech Republic after 1990 led to modernization and integration into the European tourism market.

Conclusion

Algeria stands on the cusp of a tourism renaissance. By committing to significant investment in infrastructure and embracing transparent privatization, the subsidiaries of the Hotel, Tourism, and Thermal Group can be transformed into world-class establishments. These strategies promise not only to enhance Algeria's appeal to tourists but also to stimulate economic growth, create jobs, and foster regional development. The Ministry of Tourism needs to adopt these strategies with seriousness and dedication to ensure that Algeria realizes its full potential as a leading global tourist destination.