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Hospitality Industry in Dubai Report

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Updated: Oct 3rd, 2019


Jumeirah is one of the most profitable companies in the hospitality industry with restaurant divisions, event management and serviced residences, among others. Its success is attributed to human capital investment that is facilitated by special management committees.

The report demonstrates the need for HCI within the hospitality sector in Dubai, UAE. The success of Jumeirah will be used as a case study to demonstrate the effectiveness of HCI in improving value and competitiveness.

Literature Review

Companies in the hospitality industry have realized the benefits of a talented workforce in increasing value and productivity. Baron (2011) observed that Dubai is experiencing a high voluntary dysfunctional turnover. The hospitality industry has been focusing on a casual workforce without investing in long-term employee retention programs.

However, the organizations with management training programs were found to have lower turnover rates compared to those relying on a casual workforce. According to Kim and Jogaratnam (2010), HCI enhances the chances of employee retention.

In fact, the study found a significant correlation between employee empowerment and a reduction in turnover rate.

Organizations invest time and financial resources to recruit the best workforce by creating HR teams to spearhead recruitment and training.

HR teams report the challenges, resource gaps, and investment needs to the executive board.

The return on investment is evaluated in terms of employee retention rate and satisfaction levels.

Budgetary allocations are calculated as a percentage of annual expenditure.

HCI enhances the value of an organization by increasing productivity and competitiveness. It is important to employees because it addresses their career goals by enhancing personal and professional skills. One of the disadvantages of HCI is the cost of implementation. Additionally, it exposes employees to talent poachers.


The research interviewed one director involved in recruitment and improvement of employee skills. Five open-ended questions were drafted that focused on initiating HCI programs in the company.


The director stated that the company was under stiff competition from other hotels and restaurants. Jumeriah has a strong HCI strategy that provides employees with a firm-specific learning and development program to enhance their skills and creativity.

Additionally, they provide basic computer skills, career and self-development courses, and supervisory development. Junior managers are trained best management development practices that include coaching, selection and appraisal, and management change.

The company evaluates the return on investment by comparing the profit margins and employee retention rates with the HCI.

It has a budget of $500,000 for training and development every year.


The interview highlighted some of the best practices adopted to enhance its productivity. There was a significant correlation between the increased value of the company and HCI. Jumeirah’s success shows that there is a need to initiate in HCI practices in the hospitality sector.

The research shows a significant benefit of HCI in improving employee skills, increasing the retention rate and improving the value of a company (Frye & Mount, 2007).


Knowledge and talent management are also important in enhancing the values of employees and an organization (Baron, 2011). Talent management empowers employees with skills while providing an organization with innovative and creative workforce.


Baron, A. (2011). Measuring human capital. Strategic HR Review, 10(2), 30-35.

Frye, W. D., & Mount, D. J. (2007). An examination of job satisfaction of general managers based on hotel size and service type. Journal of Human Resources in Hospitality & Tourism, 6(2), 109-134.

Kim, K., & Jogaratnam, G. (2010). Effects of individual and organizational factors on job satisfaction and intent to stay in the hotel and restaurant industry. Journal of Human Resources in Hospitality & Tourism, 9(3), 318-339.

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