OBG talks to Karim Cherif, President, National Federation of Algerian Hôteliers, and Managing Director, Eden Hotels

Interview: Karim Cherif

What measures are needed for Algeria to take advantage of its tourism potential?

KARIM CHERIF: It is, of course, important for Algeria to diversify its resources to strengthen its tourist potential. These resources, however, can only generate value if they are optimised by a strategic policy based across various sectors of the economy.

Algeria currently has more than 1220 hotel establishments, and there are prospects that this hotel park will grow by another 720 new hotel units by 2014. The standard of these facilities is not perfect, and there is certainly considerable potential to raise the quality of service delivery and the training of human resources. Greater collaboration on an inter-sectoral level is also needed, specifically to attract further investment and improve the domestic infrastructure. Legal reform will also prove vital to realising our vision for the sector.

Given the expansive landscape and tremendous biodiversity, the eco-tourism segment is one area with particular potential. It does, however, require policy development to support niches within this market, including Saharan and geothermal tourism.

The master plan for tourism development which runs until 2030 distinguishes different ways to develop the sector in a sustainable way. This initiative sets several ambitious objectives to promote Algeria as a leading regional tourist destination. These include to improve the quality of tourist services, develop highquality tourist centres, promote partnerships between the public and private sector, encourage investment and job creation, increase funding for the industry and create new tourist poles of excellence, among others. There are also plans to allocate significant land for the purpose of tourism development.

What role has the state played in contributing to the tourism sector, and how do you foresee this relationship developing in the future?

CHERIF: The conditions for the development of tourism in general, and the hotel industry in particular, are based on establishing strategic tools. While the state has historically played a central role in setting the path for Algerian tourism, it is likely that this will diminish in the long term, largely due to the emergence of increased cooperation between the public and private sectors.

I am among those who think that the law of supply and demand is the key to unlocking better quality and competitive prices in the industry. Algeria does not lack, from this point of view, substantial financial resources. However, only a genuine strategy with input from all stakeholders, actors and professionals can lead to a plural and multi-sectoral action plan. Ongoing highlevel discussions about a long-term strategy are continuing, although it will take considerable time to before it can be fully put into action.

Additionally, the privatisation of state-owned hotels is likely to continue. Nonetheless, it will be the responsibility of the state to establish an elaborate framework outlining clear conditions in this transition.

To what extent could financial and tax incentives help boost investment in the sector?

CHERIF: Within Algeria, where tourism projects can prove that they have undertaken market studies and that the results support their return on investment, feasibility and economic rationality, the banking sector has looked favourably on them as having met the criteria and being eligible for financing. Indeed, a number of incentives to facilitate access to bank credit have been implemented in recent years, and overall, public financial institutions have been instrumental in supporting investment in the tourism industry. Some of the most poignant areas include increasing eligibility for funding among investors, easing access to land and making available finances for those who build in this area.

The different incentives in tourism prove that public authorities are committed to integrating the industry as a key sector for long-term development. This is essential to reduce the economy’s reliance on hydrocarbons as the dominant source for economic growth.