What is the main activity of your hotel
and what kind of people you actually target?
The hotel was opened in 1997 and it was
meant to be a guest house for embassies
and diplomatic missions. But before opening
we changed our mind and turned it to 5 star
hotel. There are 2 big hotels in Baku. In
Baku compared to other cities there are
less hotels. Actually we don't target any
groups because they target us. We don't
have to do much to fill up the hotel. We
have 96 rooms and it is a medium-size hotel.
It is not a brand or chain just as an individual
hotel. It is was an American-Azerbaijan
JV. In July 2003 we started the privatization
of it and now it is an American investment.
The hotel is fuller during the week but
in the week-ends not so much because we
don't have many tourists in the country.
The companies like BP and their subcontractors
work during a week and in the week-end they
try to leave. 50% of the visitors come from
oil or oil related business.
One thing is for sure that tourism is not
developed here. May be in future it is going
to develop if they work hard on that.
May be you would be more interested to
lobby towards the government in order to
push develop the tourism infrastructure?
In Azerbaijan you can not push anyone to
anything. We have seaside to rest and now
the government tries to attract tourists
there. But it has nothing to do with us.
Baku is not like Paris or London so that
you can go and see many wonderful things.
At present it is the destination only for
businessmen. Maybe in future trade develops
and businessmen will come here not only
for oil sector but for non-oil sector as
well.
When we talked to the Minister of Tourism
ans asked him to develop the tourism sector
he said they will do that but for the countryside.
As to the city they have to diversify business
in order to attract more businessmen.
Do you think that the government actually
listens to you and your counterparts' suggestions
investing or intending to invest in Azerbaijan?
Since the new president has been in power
he has been working very hard to divert
business to other sectors. And he is pretty
successful in it.
Every year the percentage of the oil business
share in the whole economy decreases. 5
years ago it was about 80% but now it is
50%. In future the oil business perhaps
will make up only 20% of the economy. But
I think the president is working very hard
on trying to diversify business in the country.
It seems there has been some major changes
which is a good sign and maybe people are
waiting for such kind of sign to come to
the country?
The Ministry of Ecomic Development is working
very hard on promoting the country in order
to attract foreign businessmen. During 1990-2002
there was a global crisis but since 2002
business began to grow up and people began
to get interested in Azerbaijan.
If you open a hotel guide book where different
countries are represented the only thing
written about Azerbaijan is that it is a
very dangerous country and just few more
sentences. If you look at those magazines
you'll be astonished. I have been living
here for 10 years already and I have never
had problems but according to those magazines
I must be dead by now.
And we told the government if you don't
change that no one will come here and why
should they if they feel like they are going
to die here. And since then we have had
5-6 times ISO international experts who
came here to make reports and publish them
worldwide. The first step is promoting the
country and showing the good face of it.
And I think this report will also be of
great help and importance for Azerbaijan.
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You must have
seen Azerbaijan living the transition period
and major progress over past 10 years?
I came here in 1995 for the opening of
Hyatt Regency. From 1998 till 2002 nothing
changed much. It was like a calm stable
period and now it is growing up again.
You have the experience of those two
positions of the Hyatt and Grand Hotel Europe.
How would you define the image of your hotel
in Baku as compared to the others?
Since there is not so much competition
between these 2 hotels because we are the
main hotels in the city we have a good image.
If you would have 10 Hyatt Regencies or
5 Hiltons or whatever it wouldn't be even
realized. But as I said there is not much
options here.
Moreover, our hotel has a great exposure.
You can not miss the hotel when you pass
by. Because it was a government JV the Ministry
of Foreign Affairs gave this place to us.
Before the privatization the 49% of shares
belonged to individual Americans and 51%
to the Azeri government. But now it is 100%
American investment. The privatization began
only 3 years ago. We are actually the American
Leasing Company assistant company which
is more to aviation.
The owner of the hotel is from Northern
Iran and American by citizenship and originally
he is Azeri. He has had business here for
a long time.
When we see how successful the hotels
here we wonder why the normal hotels don't
come here?
Because the hotels are normal. If we would
have Hilton or 10 other brands here then
we wouldn't be so successful. In Istanbul
we have 5 ths hotels 400 of which are branded
and the rest are the individual ones and
the average rates of rooms is $50. But here
many of the rooms raise up to $200. The
money we are making here we make only for
the rooms. The room rates at the Hyatt Regency
are the most successful. So the Hyatt regency
in Baku is probably the most successful
in the world.
As an answer to your question, the explanation
for that would be as the crisis for the
last 4 years. Before that the Mariott was
very interested to have a hotel here which
is one of the biggest chains of the world.
And when the crisis started they just froze
their project here and went to Tbilisi.
The same with Hilton. There might be some
other reasons. But I don't know what they
are. May be the Hyatt is too big and they
don't want to come to the market that might
be a natural barrier for them.
On the personal level are you going
to stay here for a long time or keep on
travelling?
Actually, 6 months a year I'm not here.
Because our company is located in London.
That's why I have to move there many times
a year. And of course my responsibility
is to run this place because I'm the member
of board and the director for Baku.
What is your message for the foreign
investors?
Azerbaijan is a very good destination for
investment. But it needs support, technology
for development of non-oil sector. My advice
for the businessmen interested in Baku would
be other than the oil business. People are
realizing that the non-oil sector is also
profitable.
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