HOTREC MANIFESTO FOR EUROPEAN PARLIAMENT ELECTIONS 2014

HOTREC, the Brussels based organisation representing the hotel, restaurant and bar/café sector recently published a manifesto addressed to candidates in the European Parliament elections in 2014. It hopes to persuade the next set of EU parliamentarians to 'put tourism at the centre of European economic policy'.

Such an initiative, on the surface at least, sounds great, as tourism industry groups have been behind the curve in shaping the policy agenda. As a close observer of European tourism policy, I was naturally keen to see what HOTREC had to say.
The manifesto contains 16 demands which HOTREC highlights as 'priorities of the European hospitality sector' for 2014-2019.
These include...in it's own words;

• Accessibility - consider the burdens on SME's
• Copyright -  clear regulation of the audio-visual sector
• Cut red tape - reduce the administrative burden of enterprises
• Data protection - no extra burdens for SME's
• Distribution channels - ensure fair competition in online distribution
• Easier access to funds for SME's
• Food in restaurants  - ensure the use of fresh food is still possible
• Official controls in restaurants- no mandatory inspection fee
• Package travel - do no impair hotel bookings
• Payment cards - interchange fees must come down 
• Private accommodation - level the playing field for all participants in tourism businesses
• Smarter regulation - self-regulation should be promoted
• Social affairs - do not undermine job creation
• Subsidiarity must prevail
• VAT rates - maintain reduced rates for tourism
• Visa policy - facilitate the entrance of tourists to Europe

So it seems to me, that these demands are really just a 'wish list' of what hotels and restaurants want for their own individual businesses, rather than a justification for putting tourism at the centre of European economic policy.
While there is nothing wrong with this per se, this manifesto is, in my opinion, a lost opportunity.
If HOTREC is genuinely serious about elevating tourism's role within the EU, I would have expected a document outlining how tourism could contribute to the goals of the Europe 2020 strategy. It could also have taken advantage of the European Parliament's excellent resolution on tourism in 2011, to champion the strategic priorities for the sector. These include organisational structure, co-operation, research, innovation, technology, sustainability, training, entrepreneurship and funding. Such an approach would, I believe, certainly make future parliamentarians sit up and take notice.
A fairly obvious question which arises out of this then, is which organisation in Europe actually speaks on behalf of tourism to EU legislators?
Despite a plethora of interest groups, it is clear to me that there is no 'one voice' to speak for the sector at EU level. This leaves institutional representatives unsure how best to assist the sector and, as a result, other sectors get priority when political and policy decisions are made.
The HOTREC manifesto is unfortunately, yet another example, where the interest groups in tourism form a choir of soloists, where everyone sings their own song and where as a result, no one get heard.

THE PORTABLE HOTEL - SNOOZEBOX

Every wondered where the 4,200 security staff will stay during the London Olympics? In a transportable, temporary hotel in Hainault Forest.  Yes, a hotel which can be moved to where short-term accommodation is needed - at sporting events, festivals, film shoots etc.
I think Snoozebox is a very clever innovation.  It offers flexible accommodation from 40 to 400 rooms, which can be loaded, stacked and transported quickly to almost any destination in the world. Rooms come with air-conditioning, free WiFi, flat screen digital TV, storage, lugage rack, power sockets and a wet room. A touch screen terminal facilitates self-service check-in, and staff are available to assist if required. Food and beverage facilities can be provided at a bespoke 'Snoozebox Village'.  In addition, Snoozebox can also be used to add additional capacity to existing hotels during special events.

TUNE HOTELS 'NO FRILLS' MODEL OPENS IN LONDON

As the operating environment challenges Irish hotels to review operations, I suggest taking a look at Tune Hotels following its arrival in the UK in August. Tune opened its first property in Kuala Lumpar in 2007 and can truly be said to be 'low cost'. No towels, wardrobes, telephones, mini-bars, TV's, radios or safe despoit boxes are provided. Rooms come complete with a 5* bed, power shower, two IKEA hooks, a shelf, one socket and an electronic keylock system.

Rooms rates start from £35. Additional charges apply as follows:

• Towel & Toiletries £1.50
• Wifi £1.50 per hour, £3 per 24 hrs, or £10 per stay
• Room is serviced prior to arrival and on every other 3rd day, otherwise daily cleaning service charge is £7.50
• Hair dryer £2
• Luggage storage £2
• Television £3

While this concept might not be for everyone, there is no doubt that this pricing model will become more commonplace in years to come.

THE MONTROSE HOTEL & BUDGET ACCOMMODATION

The news that the owners of the Montrose Hotel in Dublin plan to reopen it as a budget hotel, is no surprise. Budget hotels are a growing trend internationally. While brands such as Travelodge and Premier Inn are well known here, other names are perhaps less familiar. These include Sidorme in Spain, Group B&B in France & Germany and Omena in Finland. The London hotel market is set for a shake-up in August with the opening of the really low-cost Asian brand Tune Hotels at Westminster.

At the World Budget & Economy Hotels Congress last year, I listened with interest to Peter Haaber, CEO Zleep Hotels, a Danish budget hotel company. He said that average hourly pay for hotel staff in Denmark is DKK 125,00 (about €16.50 per hour).......and that does not include holiday pay and social welfare contributions etc. which add a further 20%! That's not all. The VAT rate is 25% and non-refundable for hotel and restaurant purchases.

Given recent reports and coverage, we could be forgiven for thinking that Ireland is the only country with a very hostile operating environment!

How then, does the business model work in Denmark?

The key said Peter, is to cut costs at the outset, copy 3 star hotel facilities and cut away unnecessary services and unused facilities. Install triple glazing & automatic light switches. Get energy certification, use it in marketing and purchase energy on long-term contracts. Route reservation calls for all properties to one central facility. Outsource housekeeping, property maintenance services, IT support and breakfast production.

I wonder if the Montrose might be the first to offer something similiar here?

IRISH HOTELS FEDERATION ANNUAL CONFERENCE

I was delighted to see An Taoiseach, Brian Cowen take the time to address delegates at the IHF Annual Conference in Galway yesterday (1/3/10). I think his presence at the event was highly symbolic and perhaps an indication that the tourism industry is beginning to get more attention at the Cabinet table.

Much of the conference discussion centered around the oversupply of hotel stock in the Irish market (about 15,000 bedrooms). Peter Bacon, who recently carried out a review of the sector, suggested that a high level group consisting of hotel representatives, tourism development agencies and financial institutions should be convened urgently. This group, he suggested, could decide which hotels ought to close - those which are currently insolvent but important for recovery in the tourism market or those which may be solvent but not strategically important. I think that's going to be very tricky.

However, seasoned professional operators including Bill Kelly, Liam Griffin and Mary Fitzgerald suggested that the focus at the present time should really be on attracting overseas visitors to fill the spare rooms. I agree. That is a much more positive agenda and one which the whole industry should get behind.

I did like Peter Bacon's call for a review of the composition of hotel stock. We have too many identical full service hotels selling rooms at budget hotel rates, but very few real budget hotels. Watch this change in the coming years!

ARE INTERNATIONAL HOTEL BRANDS RETREATING?

While driving on the M4 a few weeks ago, I noticed some posters for a wedding fair at 'Johnstown House Hotel'. Hmm.......I had thought the property was called 'Marriott Johnstown House Hotel'. It was, but not anymore. The hotel's association with the Marriott brand had ended. This got me thinking about the position of international brands in the Irish hotel sector. The first of these arrived just over 20 years ago when the Conrad Dublin opened its doors in 1989. Twenty five other brands have since followed (Hilton, Four Seasons, Ritz-Carlton, Marriott, Courtyard by Marriott, Crowne Plaza, Holiday Inn, Holiday Inn Express, Westin, Sheraton, Radisson, Park Inn, Clarion, Quality, Comfort Inn, Days Inn, Days Hotel, Capella, Solis, Park Plaza, Ramada, Ibis, Travelodge, Tulip Inn and Premier Inn). However, following a period of rapid expansion, international brands are now scaling back. And others are exiting altogether. Some examples are as follows:

• Hilton operated the Mount Wolseley Resort in Carlow and Hilton Limerick (now Limerick Strand Hotel) for less than two years before ending its association with both. Last year, it also withdrew its Conrad brand from Mount Juliet in Co. Kilkenny
• In 2006, Starwood introduced the Sheraton brand at Fota, Co. Cork. This followed the launch of its Westin brand in Dublin in 2001. A second Sheraton property opened in Athlone in 2008. However, the association with the Cork property ended last year (now Fota Island Hotel & Spa) while plans to introduce its 'Luxury Collection' brand at Killeen Castle, Co. Meath were abandoned
• Golden Tulip introduced its Tulip Inn brand to Dublin in October 2005. Two years later, it withdrew from the Irish market. Today, the property operates under the Premier Inn brand, part of the Whitbread group
• Rezidor launched its Park Inn brand in 2005 following the introduction of the Radisson brand in 1998 (Stillorgan). Park Inns opened in Mulranny, Co. Mayo, Dundalk, Dublin and Shannon Airport. Today, only the Shannon property operates under the Park Inn brand
• In 2007, Choice Hotels Ireland sold its four Comfort Inn properties (Citywest, Smithfield, Parnell Square and Portlaoise) and seven of its Quality branded hotels to TVC Holdings Ltd (These eleven properties now trade as Maldron Hotels)
• West Paces introduced the Capella brand at Castlemartyr Co. Cork to much acclaim in June 2007. Eighteen months later, the association ended and the property closed. It re-opened last year under a management team from Dromoland Castle and is now known as Castlemartyr Resort

I think that we are likely to see a continuing reduction in the number of international branded properties in 2010 and 2011 with management of hotels reverting to indigenous, professional Irish operators. Good news for those who wish to see a return to a more authentic Irish hospitality experience.

CLIFF HOUSE HOTEL & MICHELIN STARS

The Cliff House Hotel, Ardmore, Co. Waterford, is a new entry in the Michelin Guide, Great Britain & Ireland 2010. It received a coveted 'One Star' from the toughest critics in the business. This is a stunning achievement for a property which opened just two years ago. I have been fortunate to visit and know it is very well deserved. Michelin stars are a big deal. Restaurant guests tend to place more trust in them as a mark of quality than in any other guide. So what does Michelin look for? Well, most people are confused and really have no idea. Surprisingly, a lot of what customers consider to be really important is NOT taken into account - warmth of welcome, general ambience, service level, customer experience and the quality of facilities & equipment.

The only criteria Michelin use in awarding a Star are -

• Quality of ingredients
• Skill in preparing them and in combining flavours
• Level of creativity
• Consistency of culinary standards
• Value for money

It then classifies restaurants on a three star rating system -

• One Star - 'A very good restaurant in its own category, a good place to stop on your journey'
• Two Stars - 'Excellent cooking, worth a detour, with specialities and wines of first-class quality'
• Three Stars - 'Exceptional cuisine, worth a special journey, where diners eat extremely well, often superbly'

So, what matters to Michelin inspectors is what's on the plate, nothing else! And that's where many chefs get confused.

For chefs, a Michelin star is the ultimate acolade, a culinary Oscar! However, many young chefs mistakingly think they should be cooking for stars rather than for customers and profit. They ought to be encouraged to think otherwise. I don't know if people remember the media fuss when Mint in Ranelagh won its star in 2008? Unfortunately, it closed its doors a year later.

UNHEPLFUL COMMENTS FROM A CHIEF TRAVEL WRITER

Tourism Ireland is embarking on a major UK campaign this year. According to Kate Holmquist, Ronan Keating is even helping out. The tourism body is targetting a 3% increase in UK visitor numbers for 2010 following a 15% decline last year. One of its key actions is to market Ireland as an 'excellent value' destination, to dispel the perception that it is expensive to holiday here. In a survey last year, Hotels.com found that Ireland had the cheapest room rates in western Europe. Average rates have fallen even further since then.

However, not everyone knows this, but one would expect the chief travel writer with The Sunday Times to be informed. But no. Last Sunday, January 10th, Stephen Bleach wrote 'from the room rates at Ireland's hotels, you'd think the Celtic tiger had never stopped roaring'. He added that 'car hire costs a mint, too'.

Travel journalists tend to be a trusted species, especially ones from established newspapers. Their perceived wisdom helps confused holidaymakers make choices. Regretfully, many people in the UK got an innacurate and negative message about the cost of holidaying here last Sunday. Tourism Ireland's job has just got harder. Perhaps Stephen should visit to get the real story!

HOW TO RUN A GREAT HOTEL

I recently spoke with Enda Larkin, author of a new book called 'How to Run a Great Hotel.....everything you need to achieve excellence in the hotel industry'.

I asked him about his motivation for writing such a book. Enda explained that during the Celtic Tiger, many investors assumed that hotels were as easy to run as they were to build. They were, he said, preoccupied with short-term returns, driven by the need to service debt. He added that the current crisis has provided a sharp, if painful reminder, that issues like location, viability and customer focus do still matter. Professional hoteliers he said, have had to watch in frustration, as competitors who cared little for quality seemingly did quite well. We know those days are over and Enda pointed out that inconsistent offerings, no matter how cheaply priced, will not survive in the long term.

His book is targetted at the professional hotelier and covers four key themes - direction setting, leadership, employee engagement and customer satisfaction. It also contains useful and comprehensive checklists which can be applied immediately. Thus, it is as much a practical guidebook as a general read. Students will also benefit greatly from reading it. It is my experience that good books need to be digested slowly and re-read often. This is one such book.

Enda is Director of HTC Consulting, a Geneva based firm specialising in hospitality & tourism.

IBIS BRAND LAUNCHED IN BELFAST

As travel budgets shrink, demand for low-cost accommodation continues to grow. Hotel companies are taking advantage of falling valuations to open budget properties in prime city centres locations. The recent opening of two Ibis properties in Belfast underlines this trend. The properties will be run by Andras House, a hospitality group which also manage Belfast's Ramada Hotel, Days Hotel and Express by Holiday Inn. Ibis is one of fourteen brands within Accor , a group which operates more than 4,000 hotels in 90 countries worldwide.

More generally, the traditional hotel model is likely to change to either low-cost or luxury. In such a scenario, three and four star hotels will have a tough time figuring out how to compete. For the ultimate example of a low-cost 'Ryanair' style hotel (no towels, no wardrobes etc.) and with rates from the equivalent of US$3 per night, Tune Hotels in Malaysia is worth a look.

GERMANY REDUCES HOTEL VAT RATES

This week, political leaders gathered in Germany to celebrate the 20th anniversary of the fall of the Berlin Wall. German hoteliers had other reasons to celebrate. From the 1st of January 2010, VAT on hotel accommodation will fall from 16% to 7%! But it's not all one way. VAT on other services (including restaurants) is being increased by 3% to 19%.

IRISH HOTEL SECTOR FACING INSOLVENCY

A report out today (11/11/09) by economist Peter Bacon for the Irish Hotels Federation outlines what many have known for some time, namely that Irish hotels are in dire financial straights. In the last 20 years, the number of hotel bedrooms has grown from 21,000 to almost 60,000 today. Since 2005, the number of rooms has risen rapidly - by about 15,000 or 32%. Market forces would normally have forced hotels with weak business models to close. However, this has not happened. Banks are reluctant to realise losses and write down loans granted to hotels that have no prospect of recovery. Furthermore, new hotels are required to stay open for seven years to allow investors to retain capital allowances.

A major and chaotic shakeout is predicted and it suggests that 25% of hotel rooms need to be closed down. Not an easy task in the current environment.

A WEEK OF AWARDS - HOTEL & CATERING REVIEW GOLD MEDAL & GOOD FOOD IRELAND

I was at the Shelbourne Hotel on Monday evening last for the Hotel & Catering Review Gold Medal Awards. It was an excellent event and makes one realise the superb quality that is available across the hospitality sector in Ireland. Dunbrody Country House & Restaurant won the Supreme Award. I was delighted to see The Europe Hotel & Resort in Killarney win the 5* Award. Michael Brennan gave me a tour of the property in August & it looks fantastic after its €100 million makeover. A fellow Killarney property, Killeen House Hotel won the inaugural 'Customer Experience' Award. Owners Geraldine & Michael Rosney run a superb operation and are worthy winners. On Tuesday night at the K-Club, Good Food Ireland announced its 2009 winners. Peter Ward & Maurice Keller were joint winners of the Person of the Year Award while Rathmullan House won the Top Overall Member Award. I was also glad to see my former colleague, Catherine Fulvio, proprietor of the Ballyknocken House & Cookery School win the Regional Member East Award.

GREAT VALUE IRISH HOTEL PRICES

Hotels.com released its Hotel Price Index (HPI) today covering the period January-June 2009. The HPI tracks the real prices paid per hotel room rather than advertised rates. It finds Ireland was the least expensive country in western Europe for hotel rooms between January & June this year. The average price was €80. This is no surprise to me. Irish hotels have been offering superb value in recent times although this has never been properly communicated to the general public. The media has been allowed to shape the agenda and create the misleading impression that all our prices were way out of line. There is still some work to be done on the food & beverage side. In July, the French government reduced vat rates in restaurants and cafés from 19.6% to 5.5%! So for starters, how about ordering a cut in excise duty on wine and a reduction in vat on food?

BEST PLACES TO WORK IN HOSPITALITY

In the UK, Caterer & Hotelkeeper's awards for Best Places to Work in Hospitality 2009 were announced yesterday. The awards celebrate outstanding employment practices in the hospitality sector and the list includes Red Carnation Hotels Abode Hotels Michael Caines Restaurants The Peach Pub Company Q Hotels I was also delighted to see the InterContinental Hotel, Park Lane, London, receive an 'Excellence in Training' Award. Kirsten Ferguson gave me a tour of the hotel last year following its £76 million makeover. With 447 bedrooms, Theo Randall at The InterContinental and the very innovative Cookbook Café, it is a superb property.

THE €65 DINNER MENU

This summer, I was struck by the number of resort hotels offering four course 'table d'Hote' menus at a fixed price of €65. Eating habits are changing. People are more aware of their calorie intake and its impact on their health. Yet this does not seem to be reflected in the offering. The €65 price is not particularly attractive either! So I was interested in an article 'Restaurants shrink their servings and prices as diners think small' from The Times last Saturday. It seems some restaurants in the UK are beginning to reflect this trend with 'petits plats', 'grazing menus' and 'shared platters'. I wonder if perhaps we might we see a change here next summer?

CARLTON HOTEL GALWAY CITY

I see that Carlton Hotels has entered into a long-term franchise agreement with the owners of the Days Hotel Galway. Interestingly, it is the second property Carlton has taken over this year. Hotel Management Companies are a relatively new feature of the Irish hotel landscape. The market has become more competitive and Maldron, Hotel Partners, Prem Group and Tifco have all seen changes to their portfolios in the past 12 months.

THE MILKING PARLOUR AT BALLYMALOE COOKERY SCHOOL

As interest in cooking continues to increase, Ballymaloe Cookery School continues to innovate. Darina Allen told me recently that the finishing touches are been put to a new milking parlour! It's neat, just room for three cows. Students can learn to milk and then, in an adjoining space, use the milk to produce cheese and yoghurt. How clever!

HOTEL SECTOR NEEDS HELP

More bad news on the hotel front with the news that Lynch Hotels has gone into voluntary examinership. The group will trade as normal as it finds a way to re-structure the business.

Meanwhile, Horwarth Bastow Charleton said profits fell in the sector last year by 25% and that profits and occupancy were at a 15 year low. What about this year? From my conversations with operators, very few if any properties will make a profit in 2009. They simply hope to survive!

WHITES OF WEXFORD IN RECEIVERSHIP

In a sign of the continuing difficult trading environment, Suzanne Lynch in The Irish Times today (16/7/09) reported that a receiver has been appointed to Whites of Wexford. The hotel will continue to trade and it is hoped a new operator will be appointed shortly.