David Carey: «Mauritius seriously needs to consider an open sky policy»

The Outrigger Mauritius Resort and Spa (formerly the Movënpick Resort and Spa at Bel Ombre) will open its doors in December. David Carey, CEO of Outrigger Enterprises Group, was recently in Mauritius to fine-tune the opening of the establishment. He tells us more on the Outrigger’s first dip into the Indian Ocean, in the interview below.

BUSINESSMAG. Outrigger will be opening its first hotel in Mauritius and in the Indian Ocean at the end of this year. Whatis the vision behind this expansion?

The company has been in business for 66 years now and our focus has always been the resort leisure business. Westarted in Hawaii, where we still are the dominant operator in terms of number of rooms. Outrigger has been expanding to other resort leisure destinations since 25 years. Westarted in some of the Pacific islandslike Guam, Tahiti, Fiji, Bali and in Australia. We have recently opened an Asia-Pacific regional office and have threeprojectsunderway in Thailand. We have also signed contracts for future developments in Vietnam and China.

We aspire to be in as many iconic resort locations as we can and are thus moving into the Indian Ocean. Mauritius fits nicely in this vision as it has been an aspirational resort for a very long time. It has got beautiful beaches, beautiful surroundings, a rich cultural background and many other aspects that Hawaii and Fiji offer as well. Our guests will be expecting thisvariety.

BUSINESSMAG. How was the choice of Mauritius made fromother capable competitors in the region?

It was all about being available at the right time in the right place. As a development team, we go out looking for properties and projects all the time. We’ve been eyeing the Maldives as well and we would also like to be present in the Seychelles if we come across the right opportunity. Wewould love to be present in those places. Outrigger iswell funded and we are going to be patient and ensure we get a deal that will bear its fruits in the long-term.

BUSINESSMAG. How do you plan to demarcate yourself on the local market?

We will focus on the Mauritian culture and alsobring the cultural values of the Outrigger family to Mauritius. We aim to make our clients discover Mauritius but, at the same time, also discover the Outrigger universe. This will not only be through ourw elcome but also through the food and the various activities that we will be offering.

We also intend to demarcate ourselves through our staff. We want the employees working on our properties to be proud of who they are and where they came from so that they are able to share that with our guests. This will provide the latter with an authentic experience. The culture here in Mauritius is so rich and interesting that you just know people will truly enjoy it.

BUSINESSMAG.What will be Outrigger Mauritius’ clientele base? Will you be targeting specific niche markets like Asia or China?

Outrigger has a strong family concept and dedicated services for children. We do not want to limit ourselves to one market or season. Instead, we want to have a variety of clients. We will be targeting certain markets that we already draw our visitors from for existing Outrigger resorts, such as South-East Asia, China, Europe and Australia.

Everybody is talking about China being a growth market these days and we believe in this potential as well, which will gain momentum with the new flights added connecting Mauritius to China. We are going to continue to market our global services over here. We will be taking advantage of the French market’s connectivity with Mauritius and the long-standing relationships with the UK. We are also looking forward to new markets such as South Africa, Dubai and the United Arab Emirates.

Concerning the Australian clientele, we are of the opinion that they will be more comfortable coming to Mauritius if they know there is an Outrigger over here, because this is a brand they trust in multiple destinations.

BUSINESSMAG. Why is Outrigger set out to diversify now, at a moment when the global economy and operators are being cautious in their investments?

The resort business is still holding up strongly. There are growing markets, such as China, which registered a GDP growth of around 8% last year. Also, to a certain extent, the five-star leisure resort business has been a little less affected by the economic fluctuations than the budget market.

BUSINESSMAG. There are quite a few hotels that are going through an economic crisis in Mauritius, for various reasons. Are you not apprehensive of Outrigger’s future on the island?

I think we are a well-funded, financially strong company which can afford to weather through some ups and downs. I also think that we can draw on new markets to keep people employed. One of my responsibilities is to create job opportunities in the communities wherewe do business.

Outrigger Mauritius has not opened its doors yet, but I am confident we will bring people to the table and this new venture will prove beneficial to us.

BUSINESSMAG. Mauritius has faced quite a bit of criticism from operators in the tourism industry due to ourdiminishing access issues to the rest of the world. What is your take on this?

Air access is the most important thing for a place like Mauritius. If someone from the government would solicit my opinion on this, I would reply that Mauritius seriously needs to consider an open sky policy; this can only help a resort destination.

The more flightsyou have, the more opportunities it represents. For example, if a hotel wants to do a little extra business at Christmas, itwould prove impossible since all the flights are full at this time of the year. 

You can develop a market anywhere in the world but if the flights are not there, it doesn’t matter. Outrigger used to manage a property in Tahiti and one of the air carriers collapsed. This strongly hampered the smooth running of the business. Flight connectivity is very important.

BUSINESSMAG. You have also acquired properties in Phuket and several Asian countries. Does this move align itself with the notion that there is ‘shift of power’ from the west to the east?

I think that if wehad to describe the strategies thatwe talk about in management, it would be that there are growing markets in this region, such as China, South-East Asia or India. These, in turn, generate more opportunities. In comparison, the US resort market has been flat, so I am pretty optimistic that this is where we have to be right now. This is where things are happening.

BUSINESSMAG. Outrigger is essentially a good example of a family business that ‘made it big’. How do you explain this success?

It goes back to when my father-in-law was in charge of the company. He was exposed to an organisation called the Young president’s organisation, which comprised many family business advisors. He thus began to wonder about how we would sustain this business over a multitude of generations. We started thinking about what steps to take in order to make this a multigenerational family business. This entails educating the future generation about what it means to be involved in a family business.

BUSINESSMAG. Based on your experience, what in your opinion is the biggest challenge of the tourism industry?

It is hiring the right staff and keeping it, especially now with the younger generationthat has had a different upbringing. Their career horizon is very different and itcan prove hard for the hospitality industry globally to maintain stability. It is also about the mentality on jobs in the hospitality industry. In growing economies likeMauritius, there are opportunities to train capable staff. This can prove tough in countries with no hospitality experience.