Evaluating the Implementation of an International Hotel Grading System: A Case Study of Mekelle City, Ethiopia

Abstract

This study evaluates the implementation of International Hotel Grading System (IHGS) in Mekelle city, country Ethiopia focusing on Stakeholders perception and key challenges in adhering to grading standards. Predominantly, it examines the disparity between the star rating and actual hotel performance, factors affecting the grading system, and the impact of customer dissatisfaction on hotel competitiveness and reputation. Using a mixed methods approach, data was collected through structured questionnaires from 53 respondents and semi structured interviews from 3 participants through census, quota and purposive sampling techniques. Quantitative data were analyzed using SPSS, while quantitative insights were thematically interpreted. The findings disclose inconsistent grading application, inadequate training, financial constraints, and misaligned service quality. Despite the IHGS enhances competitiveness; challenges in subjectivity of the criteria, fairness and transparency and low capacity of assessors persist. Accordingly, recommendations emphasize on review and revise of the criteria, stakeholders’ involvement, assessor’s capacity building and regulatory oversight to align grading outcomes with service delivery and guests’ expectations.