Superior quality of food and service is our hallmark.

PositionAkhtar Riaz - Interview

PAGE: How do you review the performance of hospitality industry in Pakistan

Akhtar Riaz: In my view, the performance of hotels and restaurants in Pakistan may be reviewed on two benchmarks: 1) quality of food and services and 2) profitability. In Pakistan the cost of doing business is constantly on the rise due to depreciating rupee and rising cost of utilities. Added to these is the lust of the government to impose new taxes or increase the rates. Under such a prevailing environment the management has two options, keep on increasing rates or compromising quality. Keeping in view the rating of our hotel, we have to keep the rates affordable without compromising on quality. This reduces our profit margin and in the long run does not allow undertaking timely BMR (balancing, modernization and replacement).

PAGE: What is the average occupancy rate in Pakistan

Akhtar Riaz: The average occupancy rate in big cities may not be very high, but there is regular and consistent traffic throughout the year. However, in areas having seasonal influx of people, occupancy rate remains negligible during the off season. Therefore, owners become keen in maximizing profit during the season and at time forced to compromise on quality, which often annoys the visitors. Let me refer to the conditions in Murree at this time. Due to the summer vacations there is extra ordinary rush. There are intermittent announcement that people should avoid visiting Murree but all in vain. Therefore, my suggestion is that more picnic spots should be developed throughout the country. In this regard, I would especially refer to the development of 'Gorakh Hill' in District Dadu of Sindh.

PAGE: Do you believe that flourishing of hotel industry is directly dependent on inflow of tourists in Pakistan

Akhtar Riaz: Around the world, the wellbeing of hotel industry is dependent on tourism. Therefore, the respective governments pay special attention to the hotel industry because it is a major earner of foreign exchange. Now referring to Pakistan, though the government has declared hotels an industry but utility tariffs are charged on 'commercial rates'. Similarly, hotels use imported food items on which very high import duties and other taxes are charges. Therefore, my humble request is that hotels should be allowed to import food items on concessional rates.

PAGE: Do you believe that tourists are reluctant to visit Pakistan because of the 'negative perception' of the country

Akhtar Riaz: Let...

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