A Multi-Phase Methodology for Investigating Localisation Policies within the GCC: The Hotel Industry in the KSA and the UAE

Due to a high unemployment rate among local people
and a high reliance on expatriate workers, the governments in the
Gulf Co-operation Council (GCC) countries have been implementing
programmes of localisation (replacing foreign workers with GCC
nationals). These programmes have been successful in the public
sector but much less so in the private sector. However, there are now
insufficient jobs for locals in the public sector and the onus to provide
employment has fallen on the private sector. This paper is concerned
with a study, which is a work in progress (certain elements are
complete but not the whole study), investigating the effective
implementation of localisation policies in four- and five-star hotels in
the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates
(UAE). The purpose of the paper is to identify the research gap, and
to present the need for the research. Further, it will explain how this
research was conducted.
Studies of localisation in the GCC countries are under-represented
in scholarly literature. Currently, the hotel sectors in KSA and UAE
play an important part in the countries’ economies. However, the
total proportion of Saudis working in the hotel sector in KSA is
slightly under 8%, and in the UAE, the hotel sector remains highly
reliant on expatriates. There is therefore a need for research on
strategies to enhance the implementation of the localisation policies
in general and in the hotel sector in particular.
Further, despite the importance of the hotel sector to their
economies, there remains a dearth of research into the
implementation of localisation policies in this sector. Indeed, as far as
the researchers are aware, there is no study examining localisation in
the hotel sector in KSA, and few in the UAE. This represents a
considerable research gap.
Regarding how the research was carried out, a multiple case study
strategy was used. The four- and five-star hotel sector in KSA is one
of the cases, while the four- and five-star hotel sector in the UAE is
the other case. Four- and five-star hotels in KSA and the UAE were
chosen as these countries have the longest established localisation
policies of all the GCC states and there are more hotels of these
classifications in these countries than in any of the other Gulf
countries. A literature review was carried out to underpin the
research. The empirical data were gathered in three phases. In order
to gain a pre-understanding of the issues pertaining to the research
context, Phase I involved eight unstructured interviews with officials
from the Saudi Commission for Tourism and Antiquities (three
interviewees); the Saudi Human Resources Development Fund (one);
the Abu Dhabi Tourism and Culture Authority (three); and the Abu
Dhabi Development Fund (one).

In Phase II, a questionnaire was administered to 24 managers and
24 employees in four- and five-star hotels in each country to obtain
their beliefs, attitudes, opinions, preferences and practices concerning
localisation.
Unstructured interviews were carried out in Phase III with six
managers in each country in order to allow them to express opinions
that may not have been explored in sufficient depth in the
questionnaire. The interviews in Phases I and III were analysed using
thematic analysis and SPSS will be used to analyse the questionnaire
data.
It is recommended that future research be undertaken on a larger
scale, with a larger sample taken from all over KSA and the UAE
rather than from only four cities (i.e., Riyadh and Jeddah in KSA and
Abu Dhabi and Sharjah in the UAE), as was the case in this research.





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