Prepared for the National Prepared for the National Tourism Council of Lebanon Tourism Council of Lebanon and the Ministry of Tourismand the Ministry of TourismApril 2000April 2000

Modernizing Lebanon’s Classification System

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Tourist Residences

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Discussion

IntroductionIntroduction

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Revealed need by tourism industry (interviews, cluster group, conferences, etc.)

New hotels want to be classified according to international standards.

Domestic hotels want guidelines for how to improve facilities to compete with new international hotels and/or how to reposition themselves in the market.

Upcoming European loan for hotel reconstruction-- hotels want to know type of facilities to include.

Why This Study?Why This Study?

General Need

Current Urgency

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Study ProcessStudy ProcessIn

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Revealed Need

Int’l Practices / Trends Research

Revealed need Initial Presentations, Consultations with Ministry, Council, Private Sector

Proposal Drafted

Proposal Reviewed

Revisions / Adoption

Implementation

1/99-10/99

11/99-1/00

1/00

1/00-2/00

2/00-4/00

Current

4/00-

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Discussion

Introduction

Background

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Analysis

Proposed

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General

Proposed

Approach:

Hotels

Proposed

Approach:

Tourist Residences

Implementation

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Purpose of Classification SystemsPurpose of Classification Systems

• Helps make comparisons between different hotels

• Gives tourists (particularly first-time visitors) idea of accommodations to expect

• Used by travel agencies/operators to identify and market lodgings to consumers

• High standards encourage owners/managers to maintain and improve their properties (low standards = low quality product)

• Helps owners/managers maintain pulse on market trends

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Informational Developmental

(focus on developers)(focus on consumers)

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Classification TypesClassification Types

InfrastructureInfrastructure Service/QualityService/Quality

Where

What

How

Example

Benefits

Drawbacks

Traditional systems, prevalent in developing countries

Mostly infrastructure features

“Objective” criteria

Started in Europe, more prevalent world-wide

Quality of infrastructure, type of services

“Objective” and “subjective” criteria

Five star hotels requirements: - 200+ rooms - 3 pools - lobbies of certain size- easy to inspect- helps guide investment decisions- favors large, international hotels

Does not encourage property maintenance, not focused on customer preferences

Objective: availability of 24-hour room serviceSubjective: quality of bedroom furniture, front-entrance maintenance

-highlights high-quality, smaller establishments-keeps high quality product-helps customer satisfaction

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Trends in Classification SystemsTrends in Classification Systems

Move to Quality Move to Quality StandardsStandards

• Market research reveals customer association of class with quality more than with amenities

• Help improve and promote quality independent hotels (chains do not need as much promotion)

• Help spread knowledge about service standards among non-chain hotels

Private/Public PartnershipsPrivate/Public Partnerships• Quality evaluations

require deeper industry knowledge --evaluators consultants, not policemen

• Government helps set rules, knowledgeable private consultants evaluate -- more responsive to industry trends

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““Over ClassificationOver Classification””- Food/drink establishments, pools, campgrounds, not generally classified - Don’t serve tourist purpose- Attention diverted from hotels/apartments (95% of lodging)

Confusing Rating SystemConfusing Rating System

- International, 4-star A, 4-star B, 3-star A very confusing

- Most recognized system is standard 5-star system

Confusing CategoriesConfusing Categories- Many categories, not responsive to industry developments - hotel de residence vs. furnished apartments- Categories unique to Lebanon - don’t serve tourist informational purpose

Over Specificity of RulesOver Specificity of Rules

- Too specific, burdensome, deprive originality

- Broader rules adjust for style and taste

How Does Current System Work?How Does Current System Work?

ProblemsProblems

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Discussion

Introduction

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Proposed ApproachProposed Approach

Lodging: Focus on Lodging: Focus on Hotels/Furnished ApartmentsHotels/Furnished Apartments

• 95% of all lodging offerings,

others combine for less than 10 units

• Hotels used by first-time visitors, most important

• In Lebanon, furnished apartments also important

Food/Beverage:Discontinue Food/Beverage:Discontinue ClassificationClassification

• Hygiene/security, by other agencies

• Tourists not guided by ratings -- “walk-in” method

• Expense fraction of hotels’, “bad experience” not produce same effects

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Structural CharacteristicsStructural Characteristics

Both Infrastructure and Service / Both Infrastructure and Service / Quality CriteriaQuality Criteria

Service /Quality:

Will help Lebanese compete on service, its strength

Will highlight smaller, independent, quality hotels

Infrastructure:

Will guide development of numerous hotels being built/reconstructed

Will encourage investment by ones that are not doing it

Will help hotels find their new niches, in new hotel market

Private Inspection Private Inspection TeamTeam

Credibility of system depends on inspectors’ industry knowledge

Outsourcing to a single organization,fees collected

Strong private sector support

Government Government Involvement in Involvement in

Setting of StandardsSetting of Standards

Maintains high standards, keeps industry good in mind

Tradition of government involvement in Lebanon

Jointly updates standards with private sector

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Proposed TypologyProposed Typology

Tourist Hotels:Tourist Hotels:• Incorporates “International

Hotels” & “Tourist Hotels”• Categories simplified to 1-5

stars, no A/B

Tourist Residences:Tourist Residences:• Incorporates “Residence Hotels”

& “Furnished Apartments”-- standard term in Europe

• 1-5 stars

Other Lodging Types:Other Lodging Types:

• Bed & Breakfast, Condominium, Cottage (Chalet), Inn (Auberge), Lodge, Motel, Resort, Historic

- Currently not enough properties to develop unique classification for each

- Could be classified according to their accommodations

• Boarding Houses, Equipped Camps, Youth Clubs

- Remain as currently defined

- Not worth categorizing

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Discussion

Introduction

Background

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Analysis

Proposed

Approach:

General

Proposed

Approach:

Hotels

Proposed

Approach:

Tourist Residences

Implementation

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How System Was DevelopedHow System Was Developed

International Classification Standards: International Classification Standards: Combination of Several SystemsCombination of Several Systems

• Mainly: Switzerland, WTO, Scotland, France • Also studied: England, U.S., Bahrain, Germany, New Zealand, Mexico, Canada, South Africa, Spain, Syria, Jordan

International Hospitality Trends: International Hospitality Trends: Evolution in Last 30 yearsEvolution in Last 30 years

Focus on bedrooms/bathrooms

Gyms/business centers

Middle -Eastern Tastes: Middle -Eastern Tastes: Important MarketImportant Market

- Large buildings, as in U.S.

- In higher categories, points for high-end restaurants, tennis courts, massage rooms, etc.

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Lebanese Conditions: System Needs to Lebanese Conditions: System Needs to Fit CountryFit Country

- Need for quality/infrastructure standards

- Expandable for more quality standards

- Straightforward and transparent

- Improve current value/price ratio

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Two-Part SystemTwo-Part System

Hotels must meet all of these Standards vary by category Infrastructure based

Point System, hotels collect points according to amenities above minimal standards and quality factors.

Hotels need to score a determined number of points according to category -- lower category hotels need less points than higher ones.

Hotels must meet requirements under both minimum standards and general point system to be awarded a particular rating.

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Minimum Standards

General Standards

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Criteria CompositionCriteria CompositionP

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Adjusts to urban/rural and leisure / business hotelsAdjusts to urban/rural and leisure / business hotels

Guest Accommodations

39%

Building 30%

Hotel Attention Services

10%Guest Leisure and

Professional Services

21%

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SecuritySecurity

General security norms/procedures Night service Fire security Guest protection Employee welfare Price/classification posting

Security standards mostly the same for all hotel categories

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Security

5-5-StarStar

Concierge outside of door

all night

1-3-1-3-StarStar

Attendant can be inside, reachable by

buzzer/phone

ExampleExample

Comments

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Front office service Phone booths Hotel entrance Parking lots Reception hall size Temperature Bathrooms Elevators

Public AreasPublic AreasP

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All hotels need an independent entrance and a distinguishable reception hall/service

Public Areas

5-5-StarStar

60m2

Example:Example: Minimum Reception Hall Area

Comments

3-3-StarStar

40m2

1-1-StarStar

20m2

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Number of rooms Room dimension Suites availability Handicap accessible rooms Room arrangement Doors

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Guest rooms are what most differentiates categories of hotels

Guest Rooms

5-5-StarStar

20m2 + 5m2 Bathroom

Example:Example: Dimension for at least 80% of single rooms

Comments

Temperature control Safe boxes/security Habitability Telephone Linen replacement Laundry service

3-3-StarStar

11m2 + 3m2 Bathroom

1-1-StarStar

9m2

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Arrangement Items

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Percentage of rooms with shower and/or bath is main factor for categorization

Bathrooms

5-5-StarStar

All rooms with full bath or shower / WC, less than

25% not full bath

Example:Example: Bathroom availability

Comments

3-3-StarStar

90% with at least shower / WC

1-1-StarStar

Cold / hot water in room, bathroom in

the same floor

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Breakfast service Drinks service Hotel dining

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All hotels should serve breakfast, all 5-star hotels need at least two restaurants.

Food and Drink Services

5-5-StarStar

24/24-hour room service, mini bar

in all rooms

Example:Example: Room service

Comments

3-3-StarStar

16/24 hour rooms service, mini bar in room or vending

machine in same floor

1-1-StarStar

No minimum requirements

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1/2/3-1/2/3-StarStar

No requirements

Facilities Available to GuestsFacilities Available to Guests

Leisure facilities Business center Restaurants Bars Meeting/conference rooms

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No requirements for 1-3 stars

Facilities Available to

Guests

4/5-4/5-StarStar

Fax, Telephone, Internet, Computer, Printer, Photocopier available to guests

Example:Example: Business Center

Comments

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General Standards for Tourist HotelsGeneral Standards for Tourist Hotels

Can receive negative pointsCan receive negative points

For some things, you either get the points or you don’tFor some things, you either get the points or you don’t

i.e. Separate elevator for staff / luggage + 2 pointsi.e. Separate elevator for staff / luggage + 2 pointsPro

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GENERAL STANDARDS FOR TOURIST HOTELSGENERAL STANDARDS FOR TOURIST HOTELS

Standards InterpretationPossible Points

I. BUILDINGI. BUILDINGCONDITION OF BUILDINGCONDITION OF BUILDING External appearance of building will be

influenced by the overall maintenance standards. Best marks should be reserved for buildings where paintwork, windows and roof are in good state of maintenance and repair. Attractive architectural features and decorations. Clear, clean signs. Poor or negative mark for poor maintenance, such as flaking paint, illegible signs, etc.

View/Impression from outside:

Facades

Balconies

Shutters and stores

Hotel entrance

-1/+1/+2/+3/+4

-1/+1/+2/+3/+4

-1/+1/+2/+3/+4

-1/+1/+2/+3/+4

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Comments:Comments: Most points based on overall look, quality and upkeep.Most points based on overall look, quality and upkeep.

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Condition of buildingCondition of building

Number of pointsNumber of points

1616

LoungesLounges 1414

Restaurant HallsRestaurant Halls 1010

Other Common Spaces Other Common Spaces 66

Service ElevatorService Elevator 22

Hotel ParkingHotel Parking 22

BuildingBuilding

Building (30% of total points)Building (30% of total points)

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Suites / Junior SuitesSuites / Junior Suites

Number of pointsNumber of points

66Room Condition and EquipmentRoom Condition and Equipment 2222

Additional Room EquipmentAdditional Room Equipment 1212Bathroom Condition and Equipment Bathroom Condition and Equipment 88

Additional Bathroom EquipmentAdditional Bathroom Equipment 1313

Guest Rooms and BathroomsGuest Rooms and Bathrooms

Guest rooms and Bathrooms Guest rooms and Bathrooms (39% of total points)(39% of total points)

Points are accumulated for offering certain items Points are accumulated for offering certain items i.e. 80% of rooms with balconyi.e. 80% of rooms with balcony

Points accumulated based on quality factors Points accumulated based on quality factors i.e. mattress conditioni.e. mattress condition

1- 4-star1- 4-star hotels can earn points on things hotels can earn points on things 5-star5-star do not do not i.e. all rooms with bathrooms or shower / WCi.e. all rooms with bathrooms or shower / WC

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Additional ServicesAdditional Services

Number of pointsNumber of points

33

Additional CateringAdditional Catering 1515

Hotel Attention and ServicesHotel Attention and Services

Hotel Attention and Services Hotel Attention and Services (10% of total points)(10% of total points)

ServicesServices refer to availability of express check-out and refer to availability of express check-out and evening turnoverevening turnoverCateringCatering refers to quality and quantity of bars and refers to quality and quantity of bars and restaurants, live music, non-smoking sectionsrestaurants, live music, non-smoking sections

notenote: More and more guests are eating / drinking : More and more guests are eating / drinking outside of hotels, these offerings used to be more outside of hotels, these offerings used to be more important than todayimportant than today

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Guest Leisure and Professional ServicesGuest Leisure and Professional ServicesC

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Park GardenPark Garden

Number of pointsNumber of points

22Swimming PoolSwimming Pool 44

NurseryNursery 22Leisure Leisure 1414

Business / Conference FacilitiesBusiness / Conference Facilities 88

Guest Leisure and Professional Services Guest Leisure and Professional Services (21% of total points)(21% of total points)

Before, 5-star hotels had to have all these amenitiesBefore, 5-star hotels had to have all these amenitiesProposed system allows for specializationProposed system allows for specializationCity hotels likely to have conference facilities, tourist hotels City hotels likely to have conference facilities, tourist hotels likelier to have tennis courts and other leisure facilities.likelier to have tennis courts and other leisure facilities.

Banquet HallsBanquet Halls 33

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Minimum Required Points Per Hotel Minimum Required Points Per Hotel CategoryCategory

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Min. Number of PointsMin. Number of Points Total Possible PointsTotal Possible Points

Five StarsFive Stars

Four StarsFour Stars

Three StarsThree Stars

Two StarsTwo Stars

One StarOne Star

135135

115115

100100

8888

5555

158158

162162

166166

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33162162

22119119

224422

141488

0000006644

-2-2

662222121288

1313

661616101077

1212

-1-1

Hotel Scoring ExampleHotel Scoring ExampleP

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Possible ScorePossible ScorePoints Earned

+ + Points - PointsPoints - PointsI. BuildingI. BuildingCondition of Building LoungesRestaurant HallsOther Common SpacesService Elevator (for one-four stars)Hotel ParkingII. Guest Rooms and BathroomsII. Guest Rooms and BathroomsSuites/Junior SuitesRoom Condition and EquipmentAdditional Room EquipmentBathroom Condition and EquipmentAdditional Bathroom EquipmentIII. Hotel Attention and ServicesIII. Hotel Attention and ServicesAdditional ServicesAdditional CateringIV. Guest Leisure and Professional ServicesIV. Guest Leisure and Professional ServicesPark/GardenSwimming PoolNurseryLeisureBusiness/Conference FacilitiesBanquet HallsIntermediate TotalIntermediate TotalFinal TotalFinal TotalThe final number of points (117) is sufficient for a four-star hotel.The final number of points (117) is sufficient for a four-star hotel.

161614141010662222

1212121288662222

-1-1

331515

331111

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Discussion

Introduction

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Proposed

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General

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Hotels

Proposed

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Tourist Residences

Implementation

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Proposed Standards for Tourist ResidencesProposed Standards for Tourist Residences

Same as hotels, except less models to draw from:Switzerland, U.S., and analysis done by SCORE based on French model

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Methodology Employed:Methodology Employed:

International Evolution of Classification Systems:International Evolution of Classification Systems:Importance of security norms

International Industry Trends:International Industry Trends: Becoming more popular for business people

Middle-Eastern Tastes:Middle-Eastern Tastes: Residences often used by Gulf tourists

Lebanese Country Conditions:Lebanese Country Conditions: An important part of lodging offering, important to classify

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Structure of Proposed SystemStructure of Proposed System

Consistent with international practices: not usually for first-time visitors

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Same as hotels, but no quality/service criteriaSame as hotels, but no quality/service criteria

Based on five-star systemBased on five-star system

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General standards and procedures Night service Minimal fire security rules General guest protection Employee welfare Posting of prices/classification Front-office service

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Security and

Building

5-5-StarStar

For buildings of more than one level; separate service elevator

Example:Example: Elevators

Comments

3-3-StarStar

For more than three levels

1-1-StarStar

For more than four levels

Security and BuildingSecurity and Building

Hotel entrance Reception hall Temperature Bathrooms Elevators Telephone booths Parking lots Garages

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ApartmentsApartments

Minimum size Handicap accessibility Apartment equipment Temperature control Safe boxes Habitability

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Apartments

5-5-StarStar

25m2

Example:Example: Minimum apartment size (2-person studio)

Comments

TelephoneBathroom type and equipmentKitchen type and equipmentApartment cleaning Linen replacementLaundry service

1-1-StarStar

9m2

3-3-StarStar

15m2

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Discussion

Introduction

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Proposed

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General

Proposed

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Hotels

Proposed

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Tourist Residences

Implementation

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Classification ProcessClassification Process

Step 1Step 1 Builder approaches classification team for consultation (voluntary but suggested)Step 2Step 2 Builder formally approaches team for classification; file is createdStep 3Step 3 Unannounced visit to property; manager is contacted for brief informational interview on Property characteristics; Physical evaluation is conducted, accompanied by manager Step 4Step 4 Team provides manager written summary of inspection and rating decisionStep 5Step 5 Hotels re-evaluated annually, tourist residences every three years or upon request -- unannounced visits

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Reclassifying Existing Hotels/Tourist ResidencesReclassifying Existing Hotels/Tourist Residences

Two-year transition period, except for norms affecting building structures

Five years for all new standardsSome will necessitate new investmentsSome will reposition to compete under lower category marketNew standards will help guide, not cause, market realignment process

New lodgings should be subject to new standards immediately

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PPRROOCCEESSSS

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Maintaining Classification System CurrentMaintaining Classification System Current

Keep most as MOT regulation, not law or regulation subject to Council of Ministers

Will be easier to make adjustmentsInspecting team should have some interpreting power: Should issue a document elaborating on interpretations to maintain system transparentGovernment, inspections team, private sector should meet once a year to track/address developments/concerns.Incorporate more qualitative criteria as domestic industry evolves -- Lebanon not yet ready for highest standards, but system is easily expandableDecide whether/how to categorize other lodging types

Too early to develop normsSome countries don’t categorize them, some use hotel standards as basis, others develop standards specific to each property type

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