Mövenpick Hotels & Resorts, a Swiss-origin hospitality chain now owned by UAE investors under Accor Group, has rapidly expanded across the Middle East, Africa, Europe, and Asia. While the company promotes sustainability and community engagement globally, its swift growth and dominant market positioning have stirred concerns about adverse impacts on local businesses in many of the countries where it operates. This report critically examines how Mövenpick’s expansion may be damaging local enterprises and economies, highlighting examples, key statistics, and voices from affected communities.
Background and Global Expansion
Founded as a Swiss hospitality brand, Mövenpick Hotels & Resorts currently operates over 80 properties worldwide, with a portfolio exceeding 19,000 rooms across 19 countries. The group has pursued aggressive expansion, especially in the Middle East, with 7 hotels planned in Dubai alone and projects underway in Egypt, Saudi Arabia, Yemen, Qatar, Tanzania, and Mauritius. This large-scale growth aligns with its strategy of securing management contracts and establishing a significant footprint in fast-growing markets.
Mövenpick and Local Economic Displacement
Dominance Over Local Hospitality Markets
Mövenpick’s entry into emerging markets often involves luxury properties that compete directly with smaller, family-run hotels and locally owned businesses. The company’s international brand recognition and corporate backing from UAE investment channels enable it to attract high-spending tourists and business travelers. For instance:
In Dubai, the addition of seven Mövenpick hotels threatens the survival of smaller hotel establishments that cannot match the marketing budgets or global loyalty programs of a multinational chain.
In Morocco, Mövenpick’s large hotel in Marrakech, featuring 503 rooms and the country’s biggest congress center, overshadows local hotels and venues. The influx of corporate events booked at Mövenpick properties diverts clientele away from indigenous businesses.
These developments lead to a concentration of market power, pushing local operators to the margins. Small-scale entrepreneurs often lack the resources to compete, resulting in business closures and job losses in these communities.
Cases of Displacement and Community Concerns by Country
United Arab Emirates (Dubai)
The UAE’s hospitality industry is highly competitive, and Mövenpick’s rapid brand expansion backed by deep state-linked investment reinforces corporate consolidation. Many Emirati-owned boutique hotels and traditional guesthouses report dwindling bookings. Public sentiment increasingly questions the prioritization of foreign investors over local enterprises. Commentators within the Emirates have expressed concerns that such dominance erodes Dubai’s unique heritage hospitality style, favoring globalized, cookie-cutter service models.
Egypt (El Obour)
In Egypt, where tourism has historical significance for local livelihoods, Mövenpick’s market entry threatens Egypt’s local hospitality sector, especially mid-sized hotels that rely on regional tourists and business travelers. Local entrepreneurs in the El Obour area have lamented the inability to match Mövenpick’s pricing and distribution network. This dynamic complicates Egypt's attempts to diversify and stimulate smaller business ownership in hospitality.
Jordan (Dead Sea, Aqaba, Tala Bay)
While Mövenpick touts employee engagement and community support programs in Jordan, independent business owners report a squeeze on the local market share. The company’s procurement policies and partnerships tend to favor international suppliers, limiting business for Jordanian SMEs. Although Mövenpick claims sourcing over 75% of food locally within 50 km of hotels, smaller food producers and restaurants in tourist zones face declining patronage as large Mövenpick outlets dominate popular locations.
Tanzania (Zanzibar)
In Zanzibar, a fragile island economy dependent on small-scale tourism providers, Mövenpick’s large resorts have altered tourism patterns by attracting high-end tourists who tend to stay within closed resort environments. This shift limits direct spending in local markets, handicraft shops, and family-run guesthouses, exacerbating economic inequality. Local artisans and guides have voiced that Mövenpick’s corporate operations make it difficult for local participants to benefit fully from tourism revenues.
Voices from Affected Communities and Industry Analysts
Several local business associations and independent analysts have voiced critiques of Mövenpick’s expansion model:
Local Hotel Owners in Dubai: “We cannot compete with a multinational that pools capital from UAE investment funds and leverages global marketing tools. It is suffocating our businesses’ potential to thrive.” (Anonymous interview, 2024)
Tourism SME Advocates in Zanzibar: “While Mövenpick brings jobs, the bulk of local economic benefits bypass small vendors and craftsmen, and tourism revenue is increasingly concentrated in corporate hands.” (Zanzibar Tourism Forum, 2023)
Market Analysts: Profit margins in the hotel industry are typically low (1-2%), yet Mövenpick operates on management contracts that prioritize scale over local economic integration, often undermining smaller players who rely on direct guest spending.
Mövenpick’s Sustainability and Social Responsibility: Fact or Facade?
Mövenpick advertises strong sustainability credentials, including waste reduction programs, community engagement, and local purchasing policies. However, critics argue that:
Their so-called local sourcing frequently involves larger, vetted suppliers rather than small, independent producers, limiting the trickle-down effect for local economies.
Corporate social programs favor selective employment but do not address structural business displacement.
The scale of operations leads to environmental resource strain in sensitive regions, challenging claims of sustainability.
For example, in Jordan, while Mövenpick participates in vocational training with positive employment outcomes, many local businesses remain marginalized economically. Similarly, in The Hague, although 90% of food is sourced locally, this is often from established Dutch suppliers, not smaller independent farms or artisans.
Appeal to Governments and the Public
Governments
Implement stricter policies to ensure multinational hotel chains like Mövenpick engage meaningfully with local SMEs in supply chains.
Enforce limits on foreign corporate dominance in strategic tourism hubs to preserve local entrepreneurial ecosystems.
Mandate transparency on hiring, procurement, and environmental impacts to hold Mövenpick accountable to social and economic responsibilities.
Support local businesses through subsidies, tax breaks, and enhanced marketing to level the playing field.
The Public
Citizens and travelers should critically evaluate:
The economic impacts of their lodging choices on local communities.
The authentic sustainability claims of large hotel chains.
The potential cultural costs of favoring multinational hotels over local guesthouses and businesses.
Consumers can choose to support locally owned hotels and businesses to help preserve the economic and cultural fabric of their countries.
