TALAL JASSIM M. AL-BAHAR Chairman and Managing Director IFA Hotels & Resorts

hile the international perception of Kuwait has been understandably centered around oil wealth, the inception, in 2004, of the 20-year tourism masterplan developed in tandem with the World Tourism Organization and the United Nations Development Programme is beginning to bear fruit as Kuwait makes its mark on the international tourism map.

One of the most ambitious facets of the masterplan is the creation of a major tourist resort on Failaka Island, for which final approval from the Kuwait Municipal Council was received in October. 20 kilometers off the coast of Kuwait City, in the Persian Gulf, Failaka Island was originally named Ikarus by Alexander the Great as he swept through the region on his way to India. Important archeological sites have been uncovered on the island, including the Ikarus and Azuk temple sites, which will be open to visitors, the remnants of a 4,000-year old Bronze age settlement and latter-day Portuguese and British battlements. The island’s 24 miles of coastline and the $3.3 billion development of hotels, shops, residences, a golf course and restaurants will offer visitors a plethora of leisure activities.

Aware of the growing importance of its tourism sector in the diversification of its economy, the Kuwaiti government also aims to develop a coherent long term plan for the sector that identifies potential areas for tourism and propagates appropriate marketing and promotional strategies, determining both public and private sector needs while tailoring activities to the country’s socio-cultural norms.

This is a vision of Kuwait’s tourism future that is shared by Talal Jassim Al-Bahar, Chairman of Kuwaiti-based and leading global resort developer, International Financial Advisors (IFA) Hotels & Resorts. He comments, “I think that Kuwaitis would like their country to keep its character. Dubai, for example, lost its character in that it became a metropolitan city, and I don’t think that this is what we want Kuwait to be. Here, tourism should be developed for GCC residents – tourism for Saudis, Bahrainis, Omanis, Qataris, etc. The weather is nicer here in winter than in other parts of the GCC and we have very nice beach resorts.”

The Zanzibar Beach Hotel & Resort: luxury accommodation in one of Africa’s best-preserved island sanctuaries.

Although the origins of IFA Hotels & Resorts dates back to the Pine Cliff Resort in Algarve, Portugal in the early 1990s, the company itself was founded just three years ago. Since then, it has managed to establish itself as a major presence in the global real estate and resort development sector with projects spread round the globe and profits reaching $100 million in 2005. Aiming to establish an international network of premium leisure destinations, with the opportunity for investors to share in these developments, IFA was listed on the Kuwait (with a market capitalization of $1.3 billion) and Johannesburg stock exchanges early this year, and is planning to list in Dubai in the near future.

The establishment of strong strategic partnerships with leading local and international companies such as Fairmont and Sheraton has been at the heart of the company’s remarkable success and growth. It has also established a distinct trend for integrated developments that combine resort accommodations with prime real estate development. In addition to the Pine Cliffs in Portugal, the company has five developments in Dubai’s Palm Jumeirah, as well as one more in central Dubai, three projects in Zimbali in South Africa, another in Zanzibar in Tanzania and one in the Alabadiyah Hills above Beirut in Lebanon.

IFA has also recently acquired a majority stake in Yotel, the world’s newest and most radical concept in hotel trends. Set to change the hospitality industry, Yotel will be developed throughout the world in prime city centers and airport locations. Two hotels will open this year at Heathrow and Gatwick, while a third will open in central London in 2007. With the signature of YO!, the Yotel network will cater to airline travelers and offer first class, trendy and state-of-the-art accommodation at budget prices. “What’s special about the hotel is that it is a ten-square-meter room, with plasma TVs, very high tech and very modern, but also very beautiful and offering five-star luxury at affordable prices,” adds Mr. Al-Bahar.

‘We are aiming at becoming an international company’
INTERVIEW TALAL JASSIM AL-BAHAR, CHAIRMAN OF IFA

Only three years old, but already enjoying a significant market share and rapid growth within GCC countries, IFA Hotels and Resorts Limited is a locally aware company with a global outlook. With record financial results in 2005 and a projected increase in net profits of over 550 percent over the next two years, IFA Hotels and Resorts is a company on an inexorable rise.

Through its listing on the JSE Limited, IFA Hotels and Resorts has sold 12.5% of its shareholding for a profit of KD5 million ($17.3 million), valuing the company at approximately KD46 million ($159 million).

That is correct, although our value is now closer to KD60 million ($207.5 million). Our new aim is to become listed in Dubai, and our aim when we enter the Europen or U.S. markets is to be listed on one of those markets. In five years time, hopefully we will be listed either on the London Stock Exchange or the on the New York Stock Exchange.

What was your strategy for expansion into Portugal?

It was an opportunity that arose. My father bought the land in 1984 before Portugal became part of the European Union, and we opened the project in 1992. Spain is a big market and only half an hour's drive, and you also have the British, the French, the Italians and the Germans. One of the more interesting concepts we are developing right now is Yotel, of which we have bought 80 percent.

How do explain your success in the last 3 years?

We have a young team, with our operational offices in Dubai and our Head office in Kuwait. Success started with my father, when he invested in Palm Island. We've invested in the country at the right time. It's interesting to become an international company and our main asset is that we're a Kuwaiti-based company that is internationally focused. If you look across the private sector in Kuwait, many companies have a global vision. We need to encourage foreign investment and be more flexible with legislation, which is happening right now. Sheikh Sabah has been pushing for this in the last two years.