AXIS Hospitality International

HOW SHOULD HOTELS FUNCTION IN A PANDEMIC

IF THE HOTEL INDUSTRY CREATED A SITUATION IN WHICH IT FULLY FUNCTIONED THROUGHOUT COVID19......

................What would be happening?

It has been catastrophic to watch the hotel industry be decimated by well-meaning politicians and the bureaucrats when it could be offering so much to the community as a huge collection of essential and perfectly matched, well-located resources.

This is not an occasion when the industry can sit on its' hands at home. This is war! This is an international catastrophe potentially worsening as wave after wave creates and accentuates the human and commercial damage.

If the creativity of our industry is harnessed and cooperates, we can quite possibly be functioning at record occupancies and with a full complement of employees and caregivers. All of the tools are there for the hotels and local restaurants to provide goods and services to those that need it, when they need it and how they need it.

It is not too late and we can not wait another moment.

What do we have to offer?

1. Around the world presence in every community on the planet.
2. Millions of furnished rooms and public areas that can be reimagined if needed, cleaned daily and if necessary 2-3 times daily.
3. Millions of trained employees that perform identical tasks to those performed in hospitals, prisons, institutions and senior care homes.
4. Hundreds of thousands of trained cooks performing around the clock.
5. Infrastructure for people management, purchasing, transportation, communications, recruitment and training.
6. Air conditioned Convention facilities that could do double-duty for ICUs, the homeless, schools etc 
7. Empty rooms that could do double duty for front-line workers, quarantine, employees and the partly sick.
8. Room service to hotel rooms, local homes and apartments using rotating local restaurants to keep them all open.
9. Provincial, State and National Hotel Associations to coordinate government participation.
10. Owners that are willing to roll up their sleeves and cooperate.

What would be the benefits?

1. The economy would continue to function.
2. Full employment from one of the world's largest employers.
3. Expanded and improved mental health.
4. Massively expanded and improved community services.
5. Hotels and restaurants would be doing what they do best. Safely, securely and happily.
6. Governments could take credit. Politicians would be in the loop.
7. The industry would survive and a template for the future would have been created.
8. Break-even financial saviour.
9. Full-time employment restored.

Nothing needs to be built. No-one needs to be recruited. Re-training is part of the industry's vocabulary and all the resources are located in every community.

Where and with whom do we start?

1. We start small and we start rapidly.
2. We start global, national and local.
3. We involve governments, healthcare, hotel groups, trade associations and perhaps the military.
4. We start in small circles and work out, ironing out the wrinkles as we go.
5. We develop checks and balances to ensure full compliance.
6. The Team. Here is the first 'small group',
   1. IH&RA (International Hotel & Restaurant Association)
   2. UNWTO (UN World Tourism Association)
   3. WHO (World Health Organisation)
   4. ITUC (International Trade Union Confederation)
   5. UN (United Nations)

There exists an international hotel and restaurant association (IH&RA) that is formally recognised by the United Nations World Tourism Organisation (UNWTO) and whose members include National Associations and Hotel Groups that could and should be mobilised to oversee this catastrophe. Global Councils of Security and Human Resources could be employed to provide oversight and guidance. The association (IH&RA) has already worked with the other international organizations.

Adapting to the new Reality

For comments and suggestion, email [email protected] or contact your local hotel or restaurant association.

 

HOSPITALITY INDUSTRY DIALOGUE - A TOTAL VACUUM

HOSPITALITY INDUSTRY IS SHOOTING ITSELF IN THE FOOT 

Leaving itself without any representation at the international level.........and now in the midst of a 'pandemic'.

The international association that protects the hotel and restaurant industry from millions of dollars of impactful issues is still totally ignored by the hotel & restaurant industry. The huge hotel companies that dominate the landscape around the globe are household names. Names that ring a bell in all cities, most towns and many villages and on thousands of beaches. Names that have morphed from about five brand names to perhaps hundreds of brand names from high-end luxury to more modest middle-market brands boasting limited services and less luxurious conveniences.

All are actually represented by the International Hotel & Restaurant Association, established in 1947 and recognised by the United Nations World Tourism Organisation as 'the voice of the industry'. The membership is made up from the Regional & National Hotel Associations, the National Restaurant Associations and the world's Hotel Companies for whom this association worked from its' Paris-based office.

All were represented......... but very few paid their dues because very few recognised their global responsibilities or the adverse influence from the lobbying of 'Special Interest Groups' of International Organisations in distant cities ie Geneva, Madrid, etc.

When I was tasked with the challenge of strengthening the association as CEO, we formed a number of 12-15 member Global Councils with which we teleconferenced monthly to identify issues and develop action to head off adverse consequences. Vice Presidents of ALL the hotel groups, members or not, identified issues that needed resolution; some examples included

1. Human Resources Council identified
   1. Labour Shortages worldwide. About 12-15 million
   2. Flexibility of working hours
   3. The need to reinvent borders to allow job seekers to get to jobs
2. Security Council identified
   1. Man-made disasters 
   2. Natural disasters
   3. Terrorism disasters
3. Marketing Council identified
   1. Trademark theft by OTAs
4. Foodservice Council identified
   1. Menu labelling of ingredients
5. Association identified threats & opportunities
   1. Fixed Check-out Hours being eliminated by Int'l Standards Organisation
   2. Strategies & procedures to offset Child Sexual Tourism
   3. Standards for Hotel Classification  (5,4,3 Star etc). Worldwide review of Status.

The involvement of 125-150 senior members and non-members (all VPs and specialists) expanded the membership as more realised the huge value of inter-company, international dialogue and potentially huge costs of the threats to the industry.These Global Councils have been discontinued and the membership of the major hotels groups has totally collapsed.

The appearance of success that one might suspect on visiting the IH&RA Website is shocking to those of us who I knew that now find,

1. The Annual Congress in China on the front page was for the event in 2017.
2. The Achievements identified were composed by our team 20 years ago.
3. The Global Councils referred to have disintegrated.
4. The National Associations have disappeared.
5. The Major International Hotel Groups have gone.

The result is that the Worldwide Industry is no longer represented globally, there is no dialogue about the issues, the issues will be resolved by Special Interest Groups, International Standards will be formed without industry involvement and future courts will refer judgement to international courts where these standards are recognised. The labour shortage will become more severe not because there are no workers but because workers can not get to their jobs. Terrorism and pandemics will not have the benefit of industry developed procedures that save lives and the sexual exploitation of children white paper will not be adopted or distributed. Travellers and travel writers will continue to question the validity of a Six-Star hotel in Dubai against a Five Star Hotel in Havana.

This is the Wild West, the Hotel and Restaurant Industry in the 21st Century......in the hands of special interests, unsupported by the industry. In the aftermath of a 'pandemic' that closed our industry totally and for which we had no idea where and how we as hotel groups, owners, operators, employees, suppliers, designers, builders would go when things improved. All of those that could talk are sitting at home with the technology to communicate but with no interest in the official international organisation that is designated to act on their behalf.

Adapting to the new Reality

Contact [email protected] or your local association.

 

 

POST COVID 19 RESTAURANT OPENING for Dummies

NO! A RESTAURANT CAN NOT OPEN WITH 25% CAPACITY. IT'S BETTER TO STAY CLOSED

Some jurisdictions in their wisdom are defining the criteria for re-opening to protect social distancing and it cannot work. There must be another way........and there are many.

As a former busboy, waiter, cook and manager, I feel compelled to speak out on behalf of my hospitality colleagues.

All restaurants are seasonal even on a daily basis. No restaurant can operate on a low season seven days a week. It will go out of business in one week. To function during normal times, a stand-alone restaurant has some flexibility that a hotel restaurant does not. Examples include,

• A typical hotel restaurant must open for breakfast and fit in all guests who are limited in time available.
  • 25% capacity will be insufficient to service travelling clientele on a schedule.
  • Breakfast service necessitates staffing one half a shift more than a stand alone restaurant.
  • Stand-alone restaurants are not typically geared toward breakfast business.
• A typical hotel restaurant must open seven days a week.
  • 5 shifts a week splits the teams and necessitates extra employees
  • Some days are lost losers when stand-alone restaurants can close
• Stand-alone restaurants cannot be lumped together. They range from coffee shops, cafeterias and bistros to pubs, white tablecloth destination dining to corner diners, ethnic specialty shops and banquet and convention centres. They can not be lumped together nor can any of them function or survive a week with 75% of their revenue forbidden.
  • It has little to do with capacity, it has everything to do with social distancing or facial protection.
  •  A table for two is different from a table for 4, or is it?
  • A round table for 8 spaces differently than a round for 4. If 4 people can meet at home, why not at a restaurant?
• High seasons can be Summer, weekends, Holidays or convention days.
  • Operating at 25% would not suffice for the customer, for the owner or the employees
• Low seasons can be Mondays, February, Labour Day in the city, 2.00PM, 9.00PM and Sunday nights
  • 25% is less than the capacity needed for Low seasons.

Taking a restaurant of 120 seats as an example and inflicting a 25% maximum seat count provides 30 seats and depending on the style of restaurant, that could mean anywhere between 8 and 12 tables. Remember that buffet service is not permitted.

1. With 120 seats it is reasonable to anticipate +/-8/10 service staff, 1 manager, 1 Chef, 3 cooks, 2 stewards and 2-3 'back of house' support staff (purchasing, storekeepers, cleaners, receivers, accounting, managers) for a total of about 18 employees, depending on hotel or standalone restaurant.
2. With 30 seats, 5 employees are potentially cut (although in many jurisdictions they are still paid but still without tips) and 75% of the revenue is eliminated because of the seating reduction.
   1. Rent & Overhead. No change.
   2. Utilities. No change.
   3. Management Costs. No change

Meanwhile employees who have endured 10 weeks of 'self isolation' are now further laid off because of a government inflicted limit on restaurant size that could be rectified by some form of Personal Protective Equipment (PPE) for the employees as front-line workers. NB. Customer face masks not practical for eating/drinking.

The ebb and flow of customers in a typical restaurant balances low and high, day/week/month season, and low and high time period vs turnover without considering the critical factor of 'average spend' that ends up with margins that are very low under any circumstance and in most hotel situations, food and beverage margins that are in fact negative.

Government officials must consult the industry for workable solutions and they do not include the reduction of seating capacity but the protection of the public, valuable hospitality employees and the business owners, many of whom are spinning their wheels or treading water even in the best of times.

For further information contact,

David McMillan ([email protected]) 

Former CEO of the International Hotel & Restaurant Association

 

.............or your local hotel or restaurant association,

 

THE TIME HAS COME TO RE-INVENT THE WORLD'S BORDERS

WHY IS A WORKER A MIGRANT?

Why should a 'Migrant' have to climb a wall or dangerously cross an ocean when the people on the other side of the wall or the water needs a person who wants to work?

Actually they do not need a 'migrant' they need a worker, instantly productive who needs to
work to feed their family, educate their children and has the enthusiasm and related attitude to work hard. His goal is to earn enough money so that he can return home to a family that has been educated and fed by his work and perhaps saved enough to open a small business.

These skills are needed in most regions of the world. The skills do not include wall-climbing!

When the season is over, he or she will go to the next job wherever that is and in whatever country with the added benefit of international experience.

This is not an American Problem it is a Global Reality that will require a Global Solution. 

The workers cannot get to the jobs that need to be filled everywhere because they are inhibited by laws and regulations that assume that,

1. Workers are migrating for life.
2. Workers are immigrants.
3. Workers are invaders.

The workers would prefer not to emigrate from their country or immigrate to another country,
they would prefer to stay home and work or go to where the work is, safely, for as long as it lasts, and then return home safely or move on to the next job. They have skills that are needed and are in short supply. They range from doctors and engineers to farmers, restaurant and hotel workers to construction and hi-tech trades. 

The politicians think this is 'migration'. It is not migration or an invasion, it is the natural supply and demand of global labour. In my view, as a person that has lived and worked in thirteen countries in the hotel & resort industry, the global community will need to re-invent the world's borders and frontiers to permit the flow of labour to the work, wherever it is and for the duration of the work period, thereby permitting the repatriation of funds, poverty reduction, education of the worker and labour growth in the receiving nation.

My own exposure to this enormous issue was as CEO of the Paris-based International Hotel & Restaurant Association, the official spokespersons of the global hospitality industry as recognized by the United Nations World Tourism Organization.

One of our most pressing issues was the shortage of 12 to 15 million workers worldwide.

Needs were loudly identified in Europe, Asia, the Americas by our Global Council of Human Resources made up of Vice Presidents of Human Resources of international hotel groups' that teleconferenced monthly for 60' to identify & resolve common issues.  This Global Council committed in 2005 to address the issue formally through a 'global consortium for human resources' consisting of,

1. International Hotel & Restaurant Association (IH&RA) Chair
2. International Organisation on Migration (IOM)
3. International Labour Organization (ILO)
4. International Organization of Employers (IOE)
5. United Nations World Tourism Organization (UNWTO)
6. International Association of Labour Unions (IALU)

The conclusion of the first meeting that took place in Geneva was that the consortium would work toward satisfying the demand for workers and easing the bureaucracy that inhibited the movement of workers and would start with a period of one year with a test of 10,000 workers with the following goals and standards,

Mission.

To eliminate the shortage of hotel & restaurant staff by matching workers to jobs for defined periods thereby contributing to financial and other benefits to both 'sending' and 'receiving' nations, enriching the lives and the education of needy workers and their families.

Workers would be regarded as temporary.

Workers would be paid at the same rate of pay as local nationals.

Employers would fund the round-trip transportation & assist with lodging.

Officials from the sending country and receiving country would be identified to coordinate the logistics.

Officials from Tourism & Hotel Associations would be coordinators for both sending and receiving countries.

The consortium would establish a computerized system to match supply to demand and generate a data-base of best practices.

 

Receiving country benefits

Labour supply would always be sufficient to meet demand,

Additional income tax flows to the country would be politically advantageous,

Labour volumes would rise and fall to meet seasonal demand.

Employers would be contributing to poverty reduction in the sending countries.

 

Sending country benefits

Rapid educational training of an experienced labour force,

Repatriation of worker funds,

Reduction of poverty (including crime etc),

Increase in the quality of health (mental and physical).

 

The global need therefore is a 'systematic reinvention of the world's borders'. The fences and walls would remain as antiquities of the past that would be replaced by technology that would identify and match workers with jobs.

Employers would provide transportation and training, pay a living wage and collect income taxes, facilitate lodging and meals and assist in the repatriation of funds if necessary. They might encourage young workers to further their experience in other countries and gain promotions from this valuable experience. This I was encouraged to do as a young worker in England...........and it worked.

Employees might surrender their passports on arrival at the local police station and collect them on their departure. This I was required to do as a Brit for my winter season in Switzerland........ and it worked.

Hotel Associations might assist young workers to identify jobs in other countries and facilitate their transportation. This I did through the British Hotel Association for my transfer to Switzerland........and thereafter to France......... and thereafter to a dozen countries.......and it worked. 

My own experience of living and working in those countries did not involve my having to climb one wall, or convince any immigration officer of my future intentions because I was there because I was needed. The system recognized that. My documents proved that. The government welcomed me. Their tax collectors welcomed me. The employers welcomed me.

There was no facial or iris recognition, no WWW or computers or connectivity or any of the things that could assist us to link a worker with a job and with the associated opportunity to pay local income taxes and even buy a fare home after the season is over.

Not treated as a migrant, an immigrant or a job thief. Not as an illegal ..........but as a contributor. A learner initially. A teacher eventually.

But no-one ever can fault me, the system or the apparatus that facilitated my jobs that could not be filled at that time by the local labour force.

DREAMING OF GLOBAL COMPROMISE

FOREIGN INTEREST IN ELECTIONS IN OTHER COUNTRIES

Politics and religion are subjects that sane hotel employees never touch. However, this hotelier believes that integration of global interests is critical to world peace. 

The 'involvement' of the Russians in the US Election prompted a thought for me about a future in which leaders of the Free World are in fact chosen by The World in an election which nudges out nationalism in favour of internationalism, thereby contributing to global peace, reduction of poverty, global healthcare, work stability, religious integration and water for all.

This is not an expectation for my own life or even for the next generation but perhaps a concept that will come out of the re-imagination of the United Nations, not as a group of countries representatives in hundreds of offices in New York but from technological advances that would allow the involvement of the whole world in its' direction. This would of course require that debates are broadcast internationally with simultaneous translation, issues are carefully explained, scientifically weighed and potential options are sought........perhaps even financed across borders.

And while cross-border involvement in the election process is currently forbidden by antiquated electoral legislation everywhere, it is clear from the most recent US Election that there was international interest from every corner of the world. Imagine a day when their voices could actually be heard, their opinions counted (even if not weighed) and a global solution was found for some of the world's most pressing issues and the United Nations became Nations United.

TWO SUBJECTS HOTELIERS NEVER, EVER TOUCH

POLITICS AND RELIGION

These two topics are subjects that hoteliers around the world are taught to avoid. Many require no guidance for it is common sense to the majority.

The adverse effects on a business are huge. All of our guests are in some way connected through their beliefs to both Politics and Religion. For many they are topics that they do not discuss in public. It is not that they are embarrassed by their choice of political party or religious beliefs, it is that they are private opinions formed over time by family and friends at home, work and play. They are there as views to be expressed at the ballot box or the church, mosque or temple, not for public consumption in the hotel lounge or cafe.

The atmosphere in a hotel is neutral, opaque, silent and un-judgemental. A platform where guests can feel free to discuss these topics between themselves but can never look to a hotel employee for support or judgement. 

The beliefs of a manager should never be known for they need to be perceived as supporters of the systems, the multi-denominational personality of their reception rooms to hold meetings and weddings of every faith or political stripe. The hotelier will contribute to every political party and encourage his multi-faith employees to celebrate their holidays and attend their religious ceremonies.

In the late 90s, I was taking on the management contract of a first class, Ultra-Orthodox Jewish hotel to be designed and built in Tel-Aviv. Knowing that I had already opened an Ultra-Orthodox Muslim hotel in Riyadh, my clients in Israel poked me in the chest and with broad smiles said....." if you can do it for them, you can do it for us!".

On being challenged about their Mormon roots, Marriott responded clearly, concisely and forcefully that their hotels have their roots in the soil in many countries, not in religion.......and their candidacy amongst other potential chains was restored.......with supportive smiles.

Fast forward to the US Election in 2016 in which the world is watching the self-proclaimed great & successful hotelier decimate both Politics as we knew it, and Religion as it is supposed to be.....for all to see.

I do not vote in the US and I will not disclose my preference here but this is my belief on the outcome from a hotel business perspective.

In my considered opinion, the branded hotel businesses will suffer severely from the positions that their candidate has taken in Politics and Religion and the brand will likely not survive. As a result, employees in these businesses will be laid off, partners in the business will suffer losses, loyal clients will find other properties to patronize. The properties will probably be re-branded, re-positioned, possibly de-glitzed and the brand will cease to exist in this industry.

And the devout, privately religious founders of Hilton, Holiday Inn and Marriott will then continue to rest in peace.

A HOSPITABLE SOLUTION FOR SILENT REJECTION

CAN YOU IMAGINE THE DAY WHEN TECHNOLOGY WOULD ALLOW OUR INDUSTRY TO FORM A GROUP OF ENTHUSIASTIC YOUTHS WHO WANT TO WORK IN OUR BUSINESS BUT CAN'T BECAUSE THEY HAVE NO EXPERIENCE?

Hang on a minute!! There's no reason why we can not harness today's technology and  an appropriate social network and work this fun project together with our colleagues. And what does no experience mean? We're not looking for brain surgeons.

I have expressed my frustration with the Human Resources sector of our exciting hotel industry that systematically rejects the interest of all those candidates who apply for posted positions and who are not chosen.

http://davidmcmillangroup.typepad.com/consulting/2015/11/silent-rejection-the-hospitality-human-resources-scrime.html

Let's call them HNW..........no not High Net Worth but Hoteliers iN Waiting and treat them as a pool of talent to be developed by the whole hotel community in your area and not lost to other industries. They are in fact also High Net Worth potential. They are bright-eyed, bushy tailed and ready to start work.

PRE-AMBLE

In a typical hotel community there are let's say 10-15 hotels that all draw from the same residential employee communities and the hotels range from medium size 4 and 5 Star to smaller or medium size 3 to 4 Star Limited Service hotels. Add together other hospitality companies such as restaurants, airlines, tour companies etc etc etc. Together the hotels alone employ about 750-1,000 employees including management. These numbers may be larger in cities and smaller in the countryside. They all have the same needs and responsibilities. They all have some form of turnover during the year which might range from 20% - 40% per year. All of the hospitality constituents have a stake in attracting employees into our field.

Side Note # 1. Our industry is spending time and resources on reducing turnover and increasing retention but is doing nothing outside our boundaries to nurture the many in our communities who seek jobs who have many of the right attributes. 

CONCEPT

A Club will be formed to include management representatives of all hotels and other interested groups... who will commit to refer all active but unsuccessful applicants to become members of the HNW - (Toronto) Club at no cost to the members but with a commitment to those members and their colleagues to hold a series of training and orientation sessions throughout the year with a view to increasing their value, enrich their industry knowledge and position them for employment when the jobs become available.

I envision that these clubs would probably best be managed by a small group of Managers iN Waiting or young stars who are potential department heads. They were known in years gone by as 'acorns'.

I also envision that the clubs might well become known as responsible launching pads for the employment of the handicapped, military veterans and other candidates with great potential in many of the positions for which we seek employees.

Side Note # 2. We have spent millions on the creation of labour saving devices which have successfully eliminated millions of jobs. It is definitely time to address the unemployment created by those devices

CURRICULUM

Depending on the needs of the hotels in the Club, the monthly training sessions would probably include specific training or orientation sessions in the following potential positions,

1. Banquet Server.
2. Restaurant Server.
3. Prep Cook
4. Breakfast cook
5. Short Order Cook
6. Steward
7. Room Attendant
8. Reception/Front Office Clerk
9. Lifeguard
10. Security 
11. Receiver/Storekeeper
12. Accounting

Students who had successfully completed 5-7 sessions which might be a shift shadowing a star employee or a classroom/practical session taught by a manager, and, depending on the numbers might become eligible for an apprenticeship or a position in one of the participating organizations.

Side Note # 3. The training sessions might well use some of the many retired industry employees who might welcome the chance to contribute. Young trainers will be exposed to future colleagues and may well be motivated by the responsibility of contributing to the strategic development of the industry.

 

CONDITIONS

HNW students would be provided with,

1. suitable uniforms identifying them as apprentice hoteliers,
2. transit tickets (negotiated with the local transit authority),
3. a meal while on duty,
4. an interview with a manager after 4 sessions,
5. priority for a position when one becomes available within the Club members,
6. a passport recording the dates and sessions attended,
7. a CV in motion to build the tool by which this individual will be marketed.

Side Note # 4. Strategic partners in this exercise might also include local Transit, Government employment agencies, hospitality education organizations, supplier sponsors. 

It is not impossible to imagine a day in which this concept might even be linked with other communities in other communities (or countries) where supply can be linked with demand and HNWs linked with opportunities.

There are no limits to where technology could participate in harnessing the horrific blight of unemployment. This does not have to be big, in fact start small and grow from there. There's far too much to lose and so much to gain.

At least that is how I see it anyway!!

 

 

 

 

 

 

SILENT REJECTION. THE HOSPITALITY HUMAN RESOURCES' 'CRIME'.

WE LOVE YOU, WE CARE FOR YOU BUT ONLY IF YOU WORK FOR US.

As an industry that has huge issues in attracting people to work in our industry, why is it that those that profess to be human resources professional are our industry's worst enemies.

Much care has been taken by many corporations to frame employees in a new light. They are now referred to as Associates, Partners, Colleagues and other glowing descriptions that infer that they really belong as professional equals and are a part of a much bigger family.

With some inside knowledge from my former position as the CEO of the International Hotel Association, I am very aware of the very serious shortage of workers who are attracted to our hospitality industry that was estimated to be between 12 and 15 million workers worldwide. This is not only an issue in the developed countries of the world but also in the more populous but fast growing countries like China and India. Much care and millions of dollars are spent to reduce turnover, retain employees, nurture employees and provide good working conditions. 

It is my view & strongly held that we do not do a great job of attracting young people to our industry. A large number of applicants for jobs in our industry are without experience but have the right qualifications. A large number of graduates from hospitality programs never enter the industry. They are lured away by other industries who seek young people with people skills.

Do the Human Resource Professionals in Hospitality get that? Do they not believe that they have a responsibility to the industry at large as marketers of our industry?

As the Front Line of our industry....... or can I call them the marketing sharp-end in the recruitment of employees at all levels, I question their commitment to the general good of our industry by the process that they all seem to follow when recruiting new employees.

I refer to the practice of contacting only those that are considered as 'good candidates'. On occasions, this fact is announced within the online application. All the other less fortunate candidates are left hanging with no explanation, only mounting disappointment as the days and weeks pass and no response is received.

Here is why I believe that we are missing an opportunity. A position opens and we seek applicants. Many people are attracted to the position and believe that they are suitable. The qualifications seem to fit the applicants and they enthusiastically apply for the position. They imagine their life in this glamorous industry with huge opportunities for growth. 

A selection is made from amongst the applicants.

The rest are ignored. They are overlooked. Their interest and enthusiasm has fallen on 'deaf eyes'. It is a crime because there is......

• No explanation,
• No thank you for your interest,
• No congratulations on your experience to date, you have the talent to succeed,
• No suggestion for alternate opportunities,
• No suggestion for academic opportunities for upgrading,
• No referral to a central job bank or a competitor,
• No marketing message about the wonder of a job in this industry,
• No encouragement to keep looking with some suggestions of how and where,
• .......Nothing.

With the assumption that for each job, there are sometimes between 10 and 20 applicants in the developed countries,  and up to 250 employees in other areas, this represents a huge number of people (many young) who are interested in our industry, an industry that desperately needs new, young and mature workers but we systematically ignore their interest.

What might we do with these 'discards' from our HR process?

Are they truly an embarrassment lined up at our back doors, unworthy of our courtesy?

Are there no opportunities to nurture them to success?

For any of my readers who have experienced this silent rejection, I feel your pain. This has been my own personal experience in recent years,

Enthusiastic to teach, present or guest lecture after over 50 years in the industry in a couple of dozen countries, I have in the past 10 or so years applied to several colleges, universities and hospitality schools offering my services.

I have been vigourously encouraged to do this by colleagues and senior academics.

In some cases, I responded to specific job openings. In others I wrote and offered my services.

As a British-born spokesman for the hotel and restaurant industry as recognised by the United Nations, I have developed fairly good communications skills.......and can speak relatively well in both French and Spanish.

I have not received one single response.

Nothing, zip......nada!

It is not the same thing as a worker or manager applying for a job. It is however perhaps indicative of the inertia that has created this lackadaisical process of seeking out the best employees for a job rather than the more responsible strategy of developing all employees for growth. But above all we miss the opportunity of a hospitable response.

The Harvard Business Review recently Tweeted,

When you’re recruiting, your goal is to find one person who really fits your needs, not to get thousands to apply s.hbr.org/1MAxGw4

My Re-Tweet was,

Disagree. The goal - find one that you develop into one that exceeds your needs & motivate the rest to keep trying. 

Now I grant that the Harvard Business Review was not specifically addressing the hospitality industry but it is my belief that unemployment in the developed world is an ailment that is seriously entrenched and for which there are many contributing factors and many resulting negative outcomes. 

If it is mankind's responsibility to envision a collaborative plan to decrease or eliminate unemployment and by extension poverty, then the best place to start would be at the front-line of the people industry.

At least, that is my view.

 

 

EMPLOYEE SHORTAGES IN THE CANADIAN (and Global) HOTEL INDUSTRY

Temporary Foreign Worker Program    

In Canada we are confronted with two problems, a lack of visitors coming into our country, particularly from the United States, and insufficient staff to serve our guests. At the outset I would like to express appreciation to all HAC members who have taken the time to meet with MPs and Ministers in our Hotel Association of Canada Grassroots program. Your efforts to press home the need for greater federal funding for international marketing are gaining traction in Ottawa.

The HAC continues to underline the fact that there is both a skilled and semi-skilled employment crisis in Canada. Furthermore we are addressing the need for evidence of these shortages. Economist Don Drummond, as well as a TD Economics Report issued in late October, have both called for concrete evidence to support this crisis.

According to the Alberta Hotel and Lodging Association's 2013 Labour Market Survey conducted by Price Waterhouse Coopers, our industry continues to rely on foreign workers in front line occupations including Front Desk Agents, Housekeepers, Food and Beverage Servers and Kitchen Helpers. Foreign workers are an important source of labour. The survey also found that 28% of respondents currently employ foreign workers or have hired foreign workers in the past two years and 44% plan to hire foreign workers in the near future. Respondents currently employ 2,533 temporary foreign workers or one in five of every full time employee. Since 2011 the total number of foreign workers has increased by 25%.

The results of the survey dispel two common myths, namely that minimum wage jobs are the norm in the hospitality industry and secondly that foreign workers are consistently paid less than their Canadian equivalents. Furthermore these wages, which are well above minimum wage, do not include gratuities, benefits or bonuses.

In addition to recognizing that the crisis exists, the HAC is asking the Government of Canada to take immediate action to improve the system. Employees need to be provided with clearer instructions and the application process needs to be streamlined. In addition, there must be a reduction in the time it takes to process applications and increase the duration for positive Labour Market Opinions and work permits. The HAC suggests that the government should host international missions to promote jobs in Canada and hold information sessions to explain the process of hiring foreign workers.

The government is becoming more and more sensitized to this employment crisis especially as it relates to semi-skilled and not just skilled positions. The HAC has brought our message forward to the Honourable Jason Kenney, Minister of Employment and Social Development, the Honourable Chris Alexander, Minister of Citizenship and Immigration, the Honourable Maxime Bernier, Minister of Small Business and Tourism, the federal Tourism Caucus as well as opposition critics with responsibility in this area. In addition our position has been brought forward to the Deputy Minister of Industry to ensure that this employment crisis comes under the lens of all government departments within the Federal Tourism Strategy.  As well the HAC is working in concert with the Canadian Chamber of Commerce who has the support of all its offices across Canada.

The HAC will keep you posted and in the interim if you have any questions, comments or suggestions, please do not hesitate to contact me.

Anthony P. Pollard
President, HAC
[email protected]

Re-printed with permission from the Hotel Association of Canada

HOSPITALITY INDUSTRY DIALOGUE - A TOTAL VACUUM

THERE IS ALWAYS A NEED FOR INDUSTRY DIALOGUE AND I BELIEVE THAT THE HOSPITALITY INDUSTRY HAS STOPPED COMMUNICATING BETWEEN THEMSELVES.

The need for interaction between Operators, Owners, Financiers, Developers, Academics and the Specialists & Technicians amongst all of them has never been easier but is, virtually non-existent.

They have stopped communicating effectively but it was not a conscious decision. 

Simply put, we have replaced monthly debate amongst multiple experts identifying issues and forming industry positions with annual get-togethers at conferences and summits where the real global issues are discussed in regional conclaves.

At a time in my career, I was given the opportunity to lead the International Hotel & Restaurant Association, the voice of the industry as recognised by the UN and all major global hotel and restaurant chains and national associations. It was supported by only a few loyal chains and was being ignored by many. My job was to reinvigorate the association, increase the membership and develop an awareness of the international issues.

The strategy that we developped to accomplish this goal was to increase the dialogue amongst experts in the various fields that exist in our industry and to focus on the issues that they considered as 'top-of-mind'. The experts that we focused on were the Hotel chain Vice Presidents and the disciplines that surfaced with issues at that time included,

• E-Marketing- Trademark infringement
• Human Resources- Worldwide labour shortages, Education, Flexibility of working conditions
• Security - Terrorism and Natural Disasters
• Food & Beverage- Food Safety, Labeling
• Legal- Hotel Classification, Copyright licensing, Taxation, International Standards
• ......etc, etc

In each area of discipline, we identified 12-15 Vice Presidents that were willing to sacrifice one hour every month or so, or as needed to teleconference and compare notes on the subjects raised. Each group was identified as a Global Council and I, as the CEO of the Association, acted as Chairman, avoiding whenever relevant any suggestion of collusion. We were in fact solidifying the industry's position on the issues at hand and taking whatever action that was deemed appropriate.

With about 10-12 Global Councils of 12 to 15 members, we had about 150-200 senior industry executives from all continents actively involved in a dialogue on major global industry issues.

Strategically, we included Vice Presidents in these Global Councils from member chains as well as those that were not members with the objective of demonstrating value before asking for the sale. Minutes were posted on-line with comments edited by a member and reviewed at the next meeting.

Particularly interesting was that many members who were totally committed to membership having realised the great value offered by participating in this dialogue were unable to pursuade Presidents of the need for membership.

Positions were formed, refined, improved and sculpted until they fully reflected the views of the whole group with careful legal review done by competent, experienced hotel attorneys.

What were the obstacles that the non-members faced with their superiors? Here are some of the major reasons,

• "My president refuses to acknowledge that our company has this problem."
• "Most of our hotels are in the USA. We do not have many properties in International."
• "We do not have the budget."
• "My president is not from the industry and does not understand the intricacy of this issue."

Some of my readers might point to the numerous Annual Conferences & Summits that are organised around the world that bring together panellists and speakers to address the issues and topics of the day. These are indeed excellent platforms for these specialists to interact in 45 minute timeslots but they are not designed to develop industry positions or solutions. That requires more intense study over a longer period, more open debate and, more importantly, no audience.

A teleconference between 12-15 VPs of Human Resources is not in any way used as a commercial, but put two of them on a panel on stage and they will be very quick to promote their companies and totally avoid touching on the issues that are the subject of their sleepless nights. 

Imagine the power that our association had as we sat down with International Organisations with a strong, clear position developed by the world's largest hotel chains, backed by every National Hotel & Restaurant Association in the world. No other organisation has this mandate or the authority.

This dialogue is now non-existent. The issues are growing and being resolved in favour of special interest groups. Major issues are being dropped. There is a vacuum and so very few people know it, except for the 150-200 former members of these Global Councils..........some of whom still tell me of their frustration.

Here are some of the International Organisations with which we had constructive dialogue on behalf of the industry.

1. International Labour Organisation
2. International Standards Association
3. UN World Tourism Association
4. UN Central Product Classification
5. United Nations
6. World Health Organisation
7. World Trade Organisation
8. International Employers Organisation.
9. International Federation of Trade Unions.
10. European Union.
11. General Agreement on Tariffs & Trade
12. Organisation for Economic Cooperation & Development
13. United Nations Environment Program.
14. International Air Transport Association.
15. International Association of Airports
16. .....etc etc

Some of the issues that were discussed or were addressed had huge financial implications to the industry. To those of us in the know, we were perplexed by the apparent ignorance of our industry players and of many major developed nations of the powers and the dangers of special interest groups acting in their interest to develop standards that our industry would be forced to adopt and by which international courts would rule.

It was extremely rewarding to observe the Global Council Security split into three specialty areas. The Council dealing with the issue of Terrorism decided to share their best practices in a controlled environment simply because this was a 'non-competitive' area that was important to the industry as a whole. The evolution of that council's work was fast and very relevant ultimately ending in an agreement to unify the best practices into a manual through and with the assistance of a major academic institution. Whether this came to pass or not would have been an outcome of whether the industry continued to support real global industry dialogue........ or not.

Dialogue is critical to the sustainability of this global industry.

• We can learn from our mistakes and those of others.
• We can share good practices with our neighbours and our competitors.
• We must invest time and effort in this dialogue.
• We must make use of the technology that facilitates these communications.
• We must commit to making contributions to our industry's society.

 

 

 

 

TOP TEN GLOBAL HOSPITALITY TRENDS - 'WINK WINK'!

ANOTHER SET OF TOP TEN TRENDS THAT ARE NOT OFFICIAL OR PUBLICLY DISCUSSED

While industry watchers are looking at trends that are obvious to statisticians, corporate insiders and consultants, here are some cynical trends that are not tracked but which should be, in my opinion, observed & then vigorously avoided.

As a student of the industry, I look at trends from the standpoint of an employee, a brand, an operator, an owner, a lender and a guest.  After some 50+ years working in this industry, I can see clearly and unwaveringly through the billowing smoke and walk right through the shiny mirrors at the slight of hand and clumsy attempts to fool others for short term rewards. Both smoke and mirrors are in high production by many industry participants (not all) as they strive toward short term gains with no regard to the old rules of the game.

1. Fooled you. Owners who contractually agree to product improvement plans to bring their hotels back to a quality level and then delay for as long as they can, comfortable in the fact that they can often find another brand to kick the can down the road a few more years. The result...."you are staying sir.... at a cash-cow".
2. Deceived you. Actually yes, you are right, the floor is not wood, it is vinyl. Actually it is a photo of real wood that is less than 1 mm thick, and no, the wall is not marble, it is paint. The sheets are actually quite old, probably almost six years old.....like the towels. If you do complain, we'll bring you up a set of the new ones. We have about half a dozen for when the VP is here. And no, the sink stopper hasn't worked in 30 years. And yes, 'limited service' is really no service......actually more like 'help-yourself'. The carpet is hard? Well yes, we glued it to the cement........doesn't everyone?
3. Mislead you. Hotels that claim 6 Star status that are self proclaimed in countries or areas that have no classification system or no teeth in the system they have. In some countries, that is known as a swindle, but not here. Fine dining is actually a play on words......with 'fine' actually meaning a penalty. Bon appetit!
4. Goosed you. You are a valued, loyal client and we treasure your business. We reserve the right to goose you however on any and all days where we could replace you with someone less loyal and more naive..... for an extra buck or two. And those loyalty points......they disappear without trace and without notice. Sayonara!
5. Confused you. The pictures in our brochure have absolutely no connection to reality. The Spa is only a Jacuzzi and its out of order. The breakfast eggs are out of a bottle and the toaster doesn't toast. If you had wanted the presidential suite, the bed would have looked like that and the staff would have smiled...... and the only item freshly squeezed around here, is you!
6. Branded you. Yes you are right, the 20 year License Agreement for that brand does not mean that they won't build another sister brand across the street, just that you are stuck with the old one and all your best, most loyal customers will be enticed across the street. That's just the way it works. No we don't use a red-hot branding iron but we might as well!!
7. Imitated you. This brand is unique in that it was an exact imitation of that one there. We all just copy each other. It's easier that way.......no need for research & development, eliminates the need for creativity and makes staffing decisions very easy and training completely unnecessary.
8. Conned you.  The reservation system production level for that brand is indeed fantabulously high, but you have to add in all those guests who heretofore were making their reservations directly which they now love doing to get their points so they can think about staying at the Caribbean Beach resort ..............which has the perpetual 'black-out' period except in the hurricane season.
9. Phony you. I know, I know, all we asked for originally was your name and address but now, we don't trust you. Now we need your business phone, your home phone, your cell phone, your passport number, its' expiry date, where was it issued, your email, your licence plate, the make of your car, the model and year, your credit card number, its expiry date, the secret number on the back, your drivers licence and we promise to keep all this secret. Have a nice day! And still we don't remember your name!
10. Employed you.  I know, I know. We were all very excited when you started employment with us and you thought it was a career and you went out and rented an apartment and bought a new fridge. Well now you know, we borrowed you from your parents for a few months and now the season is over, they can have you back. See ya!!

The one redeeming trend that is returning to our industry which will have a huge beneficial impact on all these contrived trends, is the urge for 'authenticity'.  This is a wonderful word which all constituents of our industry should explore, investigate and vigorously pursue. It signifies genuineness, legitimacy, validity, realism, faithfulness, dependability and accuracy.

Properly delivered, it is genuine entertainment..... it encourages a great night's restorative sleep, a healthy, memorable regenerative meal and a stressless, rewarding people experience. Is that not the industry that we strive to create?

Let's pursue authenticity.........on everyone's behalf!

 

FORECLOSURES FORECASTED, OPPORTUNITY KNOCKS....IF YOU LISTEN

RECENT FORECASTED HOTEL FORECLOSURES OFFERS HUGE OPPORTUNITIES TO THOSE OF US WHOSE BUSINESS IS TURNKEY TURNAROUNDS.

A recent example allowed us to conduct a brand analysis on an aging property, select from amongst ten brands, select three for a short list and deliver increased profits of $50 million GOP over ten years..........just with the choice of the Brand and a strategic re-positioning. Profits will more than double after the reno, but will quadruple if the expansion proceeds.

No it's not Rocket Science but who would build a rocket without a rocket scientist?

A launched hotel with the wrong engine going in the wrong direction will in fact cost as  much as the rocket fired in the wrong direction. It will never get there!

And yet time after time, developers make the decisions on the launch criteria without the Hospitality Scientist and the technicians that determine the direction.

Case Study Number One. A major chain operated hotel in the Caribbean was closed for a major $100 million renovation and re-opened under the same brand that had been there for +/- 40 years. It was opened as a new project and not re-positioned. It is a financial disaster and the owner is searching for ways to re-coup his losses.

Case Study Number Two. A major chain operated hotel in Africa faces a major $60 million renovation and will be re-launched under the same brand that has been there for +/- 40 years.

Ironically the same brand operates both hotels and in both cases, the hotels are government owned. In both cases, there is no intent to change the brand/operator. They are emotionally and historically tied to the brand where brothers, sisters, daughters and sons have graduated, been married, feted and celebrated for four decades.

Case Study Number Three. A major chain operated hotel in Asia plans a major $45 million renovation and will be re-positioned under a new, upmarket brand, shedding its' ties to the old one and will benefit as I have described in the title above, resulting in a project that will once again become to market leader.

This hotel is also government owned and was also emotionally and historically tied to the original brand where brothers, sisters, daughters and sons graduated, married, feted and celebrated for four decades. The difference was that the latter contacted the David McMillan Group and listened. They had agonised over the decision for a couple of years and made the courageous decision to contract an outsider to assist them through the analysis and the decision.

Case Study Number Four. A government owned, run-down, partially closed  independent hotel and convention centre in the Caribbean seeks a partner to invest, renovate, brand, re-launch, operate and maintain.........and wonders why there were no answers to their RFP.

All four Projects were referred to the David McMillan Group but only one, so far has listened and listened carefully. At times the terms I used were foreign, misunderstood and complicated to comprehend within the contexts of their worlds. But they listened, they learned and they made the decisions that were needed. They all now understand those terms and the science behind their use.

 Here are the fundamentals of our One Stop Shop 'Turnkey Turnarounds'

• Current Brand Position vs Ideal Brand position.
• Brand Options.
• Selection Criteria & Weighting.
• LOI & Business Terms.
• Scope of renovations required & preliminary costing.
• Brand scoring.
• Risk analysis.
• Decision.
• Final negotiations.
• Renovation Planning & Design.
• Construction & Fit-Out.
• Commissioning.
• Deficiency management.

It is interesting to note that the first four points are very often excluded from so many projects and yet they actually fuel the rocket that is expected to keep going for some 30 plus years.

MEASURING HOTEL MANAGEMENT'S PERFORMANCE IN WAYS THAT COUNT

THE EXPERTS WEIGH IN ON MEASURING PERFORMANCE IN AN UNCERTAIN WORLD. AS IS MY CUSTOM, I QUESTION WHETHER THE EXPERTS HAVE IDENTIFIED THE BEST METHOD

"Measure hotel managers using RevPAR-adjusted budgets". Perhaps the day has come to take the clamps off the Uniform System of Accounts for Hotels and really measure performance based on what is controllable and what is not.

The recent announcement by a major Hospitality Consulting group that Budgets are no longer the best measurement of performance was met in my office with a huge yawn. The arguments are well thought through theoretically and I invite my readers to review the logic here, 

http://www.hotelsmag.com/MembersOnly/webNews/details.aspx?item=23901

The logic is sound in the hallowed halls of academia but, respectfully, does not hold water in the hallowed halls of my School of Hard Knocks. It is also a fine method of demonstrating to the industry that Consultants are indeed a worthwhile entity, providing alternate methods of measurement for management's excuses for not meeting or exceeding budgets.

If I did not make myself clear by this introduction to this new theory, let your imagination roam to the possibilities that exist in measuring the variables of our industry. And variables in one hotel may not represent the variables in another property.

It is my belief that the time has come to use the full power of technology to break down performance on a regular and scientific basis so that management can 'land this baby on a dime'. We have long heard the extraordinary stories from NASA's headquarters of the millimetric precision of their space engineers as they control the destiny of their missions in space. The time has come to use it in our industry.

Hospitality is not space science!!

Space science is 'details'.

Hospitality is 'details'. 

Hospitality is in the present and the future, not in the past.

REVPAR is the past, not the present or the future.

The ability of management to foresee the future and plan to deal with it determines the hotel's eventual performance. Future events are either fixed or variable. Revenues are either fixed or variable. Expenses are either fixed or variable. Measurement therefore of the results should therefore be focused on the variable components because let's face it, what can you do with something that is fixed?

That's easy to say, one might conclude. But some expenses are partly fixed and partly variable.  And some revenues are partly fixed and partly variable. Yes, that is true and who is best at determining whether it is one or the other? Managers.

http://davidmcmillangroup.typepad.com/consulting/2007/07/profit-or-break.html

 My position in this argument is that measuring financial performance uses an antiquated method of gauging the success of a General Manager and is hugely dependent on who does the measurement and by what subjective means. I would make the argument that we now have the methods, the means and the intellect to determine precisely the effectiveness of an operation financially and then start to measure.

Or at least start the measurement of other more important factors such as

1. Guest Satisfaction
2. Employee satisfaction, 
3. Innovation, 
4. Quality Assurance, 
5. Time management, 
6. Community involvement, 
7. Employee performance evaluation & reward, 
8. Employee turnover, 
9. Employee development 
10. Local procurement or Carbon Footprint reduction

.............and other stuff that goes by the inspector's nose as he seeks to impose his accounting-based performance measurements on the whole team.

Think about it!! Because margins in the coming years are going to be squeezed. 

 

 

'TOP TEN TRENDS' IN GLOBAL HOTEL BUSINESS

WHAT'S HAPPENING IN OUR INDUSTRY? THIS IS UTTER MADNESS! WE ARE ALL SINGING FROM THE SAME SONGSHEET BUT AT DIFFERENT SPEEDS. WE NEED SOME HARMONISING.

The Big Boys are indecisive, the medium ones are entrepreneurial and the small ones have the money. This is completely upside down.

It has been an interesting five years for me. In fact it has been an interesting fifty years but there is not enough space for that story here, yet. These five years have allowed me the opportunity to test the waters in three critical areas of our industry.

• Global Participation in Issues
As CEO of the International Hotel & Restaurant Association, I was in a position to evaluate the interest and involvement of the worldwide hotel industry in its own global affairs and international issues. All of them had a monumental multi-million dollar financial impact on their owners' bottom lines. With few exceptions, these issues were dealt with by Owner/Operators.
• Lack of Corporate Agility. Under a consulting agreement that was relatively free of restraint, I had to evaluate the strengths and weaknesses of the Top Ten global hotel operators and select the best for a major North African new build, fast-track' project. Then we watched and waited to see them attempt delivery in the little time left. What got in the way was policies, procedures, regulations and other unwritten hogwash that guaranteed that all of the major budget, design and operating decisions had been taken before they officially arrived.
• Indecision. Under a consulting agreement, I assisted an owner to select a major 5 Star operator requiring a review of the Top Five global hotel operators and the Top Three medium or regional hotel operators. The management of this opportunity by half of them was totally juvenile with decisions made and reversed, changed, updated, confirmed and then cancelled; later reinstated and renewed.

Here therefore are the Top Ten Trends that I have observed from this ongoing but fascinating work.

1. Disconnect with International Issues. The major international hotel chains are not interested in global issues largely because they are no longer property owners whose livelihood relies on the bottom line, they earn their money from fees. This reflects a total disregard for their prime clients, their owners. Special interest groups are working on developing standards which will cost owners millions. Big Boy operators have little or no interest at all. International issues have ramifications that far exceed their span of vision which seems to be short and medium term stock prices. 
2. Loss of Integrity. The major international hotel chains are unreliable, indecisive and change major decisions with extraordinary regularity and are rarely if ever embarrassed by
   these indiscriminate 'flip-flops'. Senior executives over-ride other senior executives. Designers over-ride Vice Presidents. Directors do not understand where their responsibility begins and ends. The client is not impressed!
3. Conference-itis vs Growth. Some Development executives seem to be more interested in attending hotel conferences than in doing new deals because they are networking for their next job. Two major brands' executives gave up the chance at two no-risk management contracts  to attend investment conferences in nice places.
4. Company Jello or 'Brand standards'. These are movable feasts that are not standard in the majority of hotels with that brand and are changing as fast as new-hires can come up with new ideas for which owners must pay. Applying them to a property that is almost 50 years old takes creativity and that is where the medium size companies shine and the big boys fail.
5. Lack of Consistency in communications. Medium size operators who hang on to their executives through thin periods deliver on their promises because their is a link between the promise and the delivery. Multiple management layers all communicating with owners is now creating huge volumes of mixed messages.
6. Mis-communication. Think thrice, act twice but speak once. 'Reply to All' is a button that should probably be removed from international hotel chains' development executives who unknowingly share their secrets with their clients. It seems that there is a need for better organisation of communications with the clients, or even a situation in which communications with the client only go through one representative. Maybe there is a need to maintain the link between the development executive and the client after the deal is done.
7. Non- Exclusivity. Geographical protection as it used to be is now a joke within the multi-brand hotel groups. This is an unfortunate development for which there are some creative ways in which both could have their cake and eat it. Formulas exist that could be taken out of the bag and used to allow the operator the freedom to develop while providing the owner with protection..................... but this is like pulling teeth.
8. 'Chin-Dia' Complex.  If it's not in China or India, we do not have time. Yes we all know that these two countries are dominating the attention of everyone whether they are selling goods & services or buying them, but this is ridiculous. Admittedly development in those two countries is like shooting fish in a barrel with each brand announcing 100 new properties of this brand or that in 5 years and then dashing off to the country club to write the contracts. But there are other countries and they are being overlooked, ignored and under-served. The days of lumping ASPAC together need to be 're-thunk'. China, yes. India, yes. But then we need "ROAPAC" or the Rest of Asia & the Pacific.
9. Hook-em and Strangle-em. 25 and 30 year management contracts with two 5 year options do not necessarily mesh with investment timelines which are generally much shorter. Creative ways of providing exit windows have gradually disappeared and a take it or leave it attitude has resulted in the ultimate erosion of brand integrity.
10. Lead with your Worst Product. Back in the day, an operator would start with his best. The strategy seemed to be common to all. Now it seems with a range of brands on offer, keep the best until last. Offer the brand with the least appeal to try and boost the volume of this failing or soiled product. At the last minute, move up a notch. 

Now that I have vented my frustration with the apparent problems, allow me some 'virtual ink' in the development of some real-life solutions.

1. VP/Director Industry Initiatives. The top 100 companies in the world should each designate a prominent, existing senior representative to coordinate their own resources to deal with global issues and the bodies that become involved in these issues. A budget for cost recovery of say $20,000 would cover out of pockets and participation. These 100 senior reps would agree to pool their efforts and pursue the interests of their constituents which includes their owners who are their prime clients.
2. Agility Monitor. To be able to respond to the numerous mixed messages that come out of a multi-layered, multi disciplined corporate, multi-brand giant, I believe that an Owner or Investor Rep that is given the additional prime function of increasing the company's agility for and with its' Owners would be a huge step forward to eliminating these frustrating blunders. Most of our large publicly owned hotel groups have Investor Relations departments to respond to their investors. How many have such an animal to take care of their real 'clients'? The annual convention does not do it!!
3. Brand Standards. The time has perhaps come to more scientifically differentiate what is 'absolutely required' from a 'want', a 'preference' or a 'nice touch'. There are probably a number of other variations. If the brand standards apply to absolutely and utterly everyone, that is probably a small list of basics. If there are exceptions, then it is subjective and not a standard.  Thirty year contracts with a foundation in brand standards that were in place in Year One are unlikely to be current thirty years hence. Does this open the possibility for a 30 year management contract and a 10 year brand contract........... with appropriate geographic protection? I think that I detect a certain flexibility entering the scene but this spoken flexibility is not reflected yet in the ranks. 
4. Close the Loop. The departure of the 'Development' executive at the point where he has inked the deal is short sited and counter-productive. A relationship has been built up through trust, through verbal and written presentations, conversations and negotiations and in most cases, the decision on the brand is made on the basis of this person's personality and perceived character. Through this individual, all communications should be channelled. Through perhaps a quarterly or semi annual review meeting, this still brittle relationship can be strengthened. This relationship, in my opinion is one that should be cherished, polished and nurtured...........not severed or eliminated because of an org chart or job description.

 For assistance in dealing with any less worldly issues, contact [email protected]

 

DEVELOPING INTERNATIONAL STANDARDS THAT WORK. IMPOSSIBLE!

INTERNATIONAL STANDARDS FOR THE HOTEL AND TOURISM INDUSTRY.....NO THANK YOU!

The opposition of our industry to the development of international standards is a little known secret . Even the industry leaders were mostly unaware of the risks and dangers that it faces.

After more than fifty years working in this wonderful hotel industry, I have developed an understanding of most aspects that are both good and bad.

At one stage of my life, I was in the wonderful position as a spokesman for the global hotel industry, recognised by the United Nations and headquartered in Paris, France. As CEO of the International Hotel & Restaurant Association, I was responsible for formulating and presenting our industry's positions on a number of subjects. Luckily but not by chance, the positions presented by me were not mine alone but were formulated by a global membership of National Hotel & Restaurant Associations and a number of international chains and our own experienced personnel. Disastrously absent from this membership were many of the well-known international chains who were neither paying members nor active participants although all were the beneficiaries of the successes we delivered.  

Faced with the plan from ISO (the International Standards Association) to develop standards for the hotel & tourism industry, a task force was formed to vehemently oppose this move by a combination of special interest organisations, NGOs, consultants and others, all of whom had an opportunity to gain from this plan to introduce international standards which would be written, for all intents and purposes, without any participation from the industry.

Faced with an opportunity to react and/or participate, the hotel chains were totally and absolutely silent.

This ignorance on the Standards Issue with ISO is born in a number of circumstances.

• The association failed to convince the chains to participate. "If the student didn't learn, the teacher didn't teach". I succeeded with a few but failed with many.
• Central decisions made at the corporate HQ eliminated membership in hotel associations to save money.
• Senior Executives from other industries take the reins without any knowledge of the industry's idiosynchracies.
• Most chains misunderstand the term Standards which in their corporation are levels of product quality that are set for the brand. They believe that their standards will always be superior to anything set by government or public organisations.
• Executives that 'get it' fail to reverse the 'non-participation' decision made at other levels.
• In many countries, the term 'International' infers everything outside their own borders! They do not see their company as being part of the international community.
• The drive for Standards at ISO was initiated by special interest groups in committees in their countries organised often by their National Standards Organisation with no industry participation. 

It is relevant to point out that the National and International Associations deal with many more issues than the standards. In my time, we formed a series of Global Councils from amongst the industry specialists, generally Vice Presidents of such special areas as Security, Human Resources, E-Marketing, Legal, Finance and others, most of which met regularly by teleconference to deal with issues and form positions. Some 125 specialists were participating on behalf of the global industry in these 60' sessions. Some of these from non-member companies invited in to observe the association's influence and the benefits of sharing 'best practices'. 

Some of the issues if not dealt with sensibly will result in huge cost implications to the industry.

One standard proposed by one representative  was that the check out time should be equivalent to the check-in time. Therefore if anyone checks in at 10PM, they can depart at 10PM on the departure date.

There were many more. All were as proposterous as this one.

For any advice on how the industry should effectively address its' own issues, contact [email protected]  

 

TOP TEN THOUGHTS FOR THE HOSPITALITY INDUSTRY

ANOTHER TOP TEN RANKING FROM A HUGE, RESPECTABLE CONSULTING GROUP. BUT WHO ARE THEY TALKING TO??

Because 7 of the 10 thoughts are Finance related. Are they a group with their finger on the global hospitality pulse or do they just go to a lot of industry conferences between audits?

Or are we expecting too much from the specialists because our industry has so many participants, so many spectators, so many interested parties. Are they talking about issues that are faced by hospitality managers, regional vice presidents, hotel & resort owners, operators, lenders or developers?

Here they are as published, and by the way, beautifully presented amongst photographs of wine, water and women,

• "Credit crunch:capital waiting on the sidelines."
"Enterprise excellence: focus on cost containment and the bottom line."
• "Technology: leveraging brand name and the internet."
• "Hospitality mixed-use: subject to adjustment."
• "Financing: planning loan restructuring and modifications in a structured finance setting."
• "Globalisation and decoupling: growth beyond the current economic cycle."
• "Green building: going mainstream."
• "Fair value: what does it mean?"
• "Alternative vacation products: value isn't everything."
• "Obama's stimulus package: impact on the lodging industry."

As a hospitality professional in this industry for the past 50+ years, I can look at these thoughts through the eyes of a hospitality manager, a RVP, an operator and a developer. I have not yet been an owner or a lender. I fully understand that these companies are almost obligated to throw these things together each year and it is a great task for a newcomer to a large firm to be given.

But it is not reality since it is not for the hospitality industry.

It is not focused on any specific audience except passive owners and lenders.Here are what I consider to be the Top Ten Thoughts for the Hospitality Industry. They are based on a few facts that one must consider for this year's list. They are mine. I did not consult anyone else about this list so I take full responsibility for their accuracy and their level of importance to the industry. Here are the considerations,

Over the coming years, the hospitality industry will be crushed by a shortage of between 10-15 million workers worldwide. This will result in skyrocketing salaries for the other workers, hotels that will be unable to function during high seasons and therefore will become financial losers. Bankrupcies will result. The state of our industry as we know it will be changed. Our industry in the developed world is totally incapable of retaining young workers because they see no immediate future. We lose 50% or more of the graduates from our hospitality educational institutes to other industries. It is seen as a poor-paying, service/servile industry.

Our industry makes no provision to retain labour in down-times. We lay them off daily, weekly, monthly and in large numbers every seven years. They search for and find work in other industries that treat them like human beings with dependent families and with dreams. We put money aside to replace furniture when they suffer in bad times, but not our employees!

Our senior industry leaders allow international organisations and special interest groups to develop and implement standards for our industry without thought for the future consequences. In fact, our leaders are so isolated, they are in fact unaware of these developments.

One can not outsource tourism jobs. The jobs that are created in our communities are sustainable, fun, rewarding and one can aspire to grow to the top. Yet, Ministers of Tourism are typically in their posts for a period of one year and, as a result tourism is not grown strategically at a national level.

Hospitality is linked to Culture, Agriculture, Arts, Transportation, Education and most other ministeries in most countries. It contributes to peace and the community in lasting ways but we are seen as rich, aloof fat cats. We are over taxed and under appreciated. The time has come to create an image for our industry that has been so overlooked

1. Reinventing Borders. It is easier for a tomato to cross the border than a worker looking for a job. Our borders must be reinvented to avoid the belief that all who cross are immigrating. There are 10-15 million people who can fill those jobs, most of which are seasonal and they will get trained and return home to contribute locally. They will repatriate funds to their families and pay taxes where they work. Let's bring the workers to where the work is. For this, our borders need re-invention.
2. Active Career Planning. It is critical that our high school students learn that an entry level position does lead to management, to ownership, to the presidency and to wealth. We need to show them how. We need to actively spread the word amongst our employees and speak to them regularly about their aspirations and goals. This is the best kept secret in our industry.
3. Labour sustainability during recessions. Part-time must be eliminated for those who want full-time jobs. That is a fundamental principle that must be adopted by our industry. We must set aside funds to retain our employees during thick and thin. Recessions happen. Low seasons come and go. Families need income. Our families must be protected.  
4.  Taxes destroy jobs. At one time, the average major Canadian city hotel paid more to the government per room than to the owner. Thousands of employees were laid off in slow periods, employee shortages were critical. Since then many more taxes have been added. It must be understood that our job-creating abilities are neutralised by taxation.
5. International Issues. With few exceptions, our industry leaders are mostly non-hoteliers. They have been successful business change-artists elsewhere and know little, and care less about long range trends in our industry. Most are focused on share prices and issues affecting our industry at the WTO, WHO, the IOE, ILO, IUF, ISO and other international organisations are of no concern to them. It is our job to learn what is going on and to communicate our concerns and participate in the changes that will affect our industry.
6. Tourism's global image. For many years, we have all agreed on the need for a better image for the industry. At no other time in the history of communications has it become easier to create an electronic ground-swell for a 'new look'. This new look must start at the ground floor. The message must be designed to communicate with big governments, international organisations, municipalities, the public, the media, students, teachers and parents. Candidates to work in our industry should be lined up at our doors and governments looking for ways to reduce taxes and create sustainable jobs. Countries that scramble to 'brand' their countries and recruit Ministers of Tourism who can strategically build their countries tourism sustainability.
7. Local creativity. Our industry is entertainment. We are privileged to be able to be represented to our clients by our employees. Our young, our mature, our aspiring employees. Their youth, their exuberance and enthusiasm are ours to share......we must remove the shackles of 'brand standards' and allow their creativity to shine through. The handcuffs must come off and we must learn to nurture creativity that is buried in our rules.
8. Employee networking. One hundred million employees work in our industry. Is now not the time to facilitate the connection between that global community and create networks of global friends in the industry. An enetrtainment industry that can boast of global connections. Friends from the same industry across borders. Be they chefs, room attendants or waiters, most will have access to the internet either at home or work 
9. Social responsibility. Most are not sure what this truly means. Of course it means different things to different people, and that is fine too. What it should mean is the involvement of management and the whole employee team in the improvement of the social infrastructure of the community in one or many ways.
10. National Tourism Policy. The foundation for the creation of a nation's tourism strategy is best created at the grass roots level. Contributions and dialogue between national tourism marketeers and the grass roots tourism providers is critical.

These are not the Top Ten Issues of our industry, they are intended as 'Thoughts'. If they were successful they would result in dialogue between industry participants and politicians, in conversations between managers and presidents and between employees here in this country and employees in your country.

We will be faced with huge obstacles in the future if we do not deal with our vision of them today.

For eloboration on any of these issues, contact [email protected]

COUNTRY MARKETING............NOW WE ARE TALKING SUSTAINABILITY!

COMMERCIALISING THE CULTURE OF A COUNTRY. CREATING A NATIONAL BRAND. CREATING SUSTAINABLE JOBS.

Is this for real? Countries actually fighting to build their product for tourism market share? Is this something that a newly appointed  Minister of Tourism can grasp easily?

Is it not strange that the opportunity to create 'sustainable' jobs in tourism is strategically overlooked by most developing countries as they 'revolving-door' their Ministers of Tourism virtually each year. No chance to realise that a country needs to build brand equity. No chance to realise that the logo and slogan do not have to change each year. No chance to realise that it is not just beaches and sun that are the foundations of sustainable wealth and great jobs for their people.

The average Minister of Tourism is in place for a year! How can the world's future tourism markets be commercialised when the 'product manager' is changed every year? Sure some are long serving, knowlegable professionals but the majority are new to the industry, hold other portfolios and know little or nothing about the global competitiveness of their product. As an enthusiastic participant in tourism over the years in at least two dozen countries, I have had the good fortune to meet many Ministers of Tourism, even one of a huge developed country (that will remain anonymous), who had never been on a plane in his life.

In another blog of mine on this site, I encouraged the 'twinning' of the Tourism ministry with other ministries. It could be Culture and the Arts, the Environment, Natural Resources but why not also Education or Human Resources, Heritage, Transportation, Fisheries, Immigration and Agriculture. All are in some way linked to the sustainability, reputation & growth of tourism.

As an enthusiastic member of the United Nations' World Tourism Organisation's Strategic Planning Committee, I once suggested that they prepare a Job Description for their new and incoming member Ministers of Tourism. All agreed that it was probably a good idea but somewhat difficult to implement.

Now, intimately involved in developing a marketing plan and brand strategy for a large developing country, I am thrilled at the thought of demonstrating to this country's government how all ministeries are involved in this mission, all regions must actively participate, all   municipalities must contribute so that piece by piece, brick by brick, year by year they can all create a new brand of, and for their country. They will in fact be creating future sustainable jobs for their nation, their children and their grandchildren that can never be outsourced, never be stolen or relocated.

What fun they will have competing with other countries in the 'Oscars' of country branding, where large countries are sometimes vaulted by smaller ones and unknown countries are suddenly rising stars. This is the Olympics of Tourism in which training is undertaken by every level of society who are proud of their country. For more fascinating information and to download the study, click on http://www.countrybrandindex.com/

For some suggestions on what you can do in the area of sustainable tourism, click on this link http://www.sustainabletourism.net/#youdo

For assistance in the development of a national marketing plan and brand strategy, contact [email protected]

FINANCIAL DISASTER MANAGEMENT......BECAUSE 'S......T' HAPPENS!

SHOOTING OURSELVES IN THE FOOT EVERY SEVEN YEARS. WHEN WILL WE LEARN THAT THE TOES DON'T GROW BACK.

It is not unusual in the hotel industry to be faced with a downswing. What is unusual is that there are so many industry leaders panicking. Is this for the shareholders' benefit or do they really believe what they are doing is right.

Are these industry leaders the same ones that panicked the last time we had a downswing? No! Why? Because most of them were in other industries then, so they do not really understand the big picture, and many of them are driven by the share price factor.

There are a few things that one should do but many more things that one should not do. As usual, many leading companies immediately focus on the things that they should not do and then do them.

As an industry veteran, my colleagues and I have been very much a part of that state of panic in which decisions are taken out of context, action plans are developed and implemented and number crunchers are called in to count the dead and weigh their carcasses. Fear and fright is the menu du jour with heaps of CYA for dessert.

What is rarely done is prepare rationally for the days in which "S__T happens"!

• There will be rainy days, if not the umbrella manufacturers would be out of business.

• There will be people who might drown in the pool, if not life-rings would not be made.

• There will be people who cut themselves, hence a first aid kit is generally available (but often empty).

Why do we not prepare for financial downswings in the same way? Why do we set aside funds to replace the carpet every few years? Why do we not just throw them out and learn to live without them when they become unusable?

In a day and at a time when our industry is faced with a global employee shortage of 12- 15 million people, why do we decide that those that we have, are dispensable. Who are we disposing of?

• Newcomers who just started to work for us. It may have taken us years to attract them. We may well lose them to the industry forever.

• Mature industry loyalists who are sent into unexpected early retirement before they wanted. Many would have stayed on beyond their retirement years.

• Middle management, so we can flatten the hierarchy. All are the senior managers of the future. 

• Senior management who cost the most. Leaders, strategic planners, loyal brand spokespeople.

Carnage, every seven years! Decimation of the rank and file and uncertainty amongst those that remain.

Perhaps we need a line item in the Management Contract equal to the ratio for FF&E Replacement in which we set aside a Development Fund in which future down-swings will result not only in no 'downsizing' but a marked increase in development of new talent that we attract from other industries that are downsizing. A fund that says,

1. We are an industry that you can trust.
2. We are an industry that treasures our talent at all levels.
3. We are in need of a lot of new talent.
4. We will train you in our new, exciting, reliable industry.

This is not the US Auto industry that has been hi-jacked by more efficient Japanese or German manufacturers. This is not the Manufacturing industry that has been beaten by the Chinese or the Mexicans. These are jobs that stay in the community...... come hell or high water.

Let's get creative with how this mess that we created can get fixed. Let's put an end to the ways in which we make it all worse.

We need a handbook for the next generation of hotel leaders who are getting ready to run our companies. Yes the ones in the Auto industry, the brand managers and the investment bankers. They must be oriented to the differences between our industry and theirs. They can not make these mistakes time and time again.

They 'know our industry' because they have stayed in our hotels. They do not 'know our challenges' yet, nor do they know how they should be fixed. Apparently we don't either!

For assistance on putting your financial disaster plan into place, contact your CEO, your VP Human Resources and your VP Development, if you still have one.......... or contact,  [email protected]

TERROURISM....... HOTEL SECURITY IS IN FACT IN GOOD HANDS!

TOO MANY BAD ARTICLES ARE BEING WRITTEN ABOUT HOTEL SECURITY...... AND BEING PRINTED IN GREAT PUBLICATIONS.

How sad it is that some of those who write authoritatively about important issues like security in our industry have no real clue about what they write. Is this not a form of terrorism where fear is actually spread by the strong suggestion that there is no serious security procedures in place?

As the former CEO of the International Hotel Association, the global voice of the hotel industry, I served as chair of the Global Council on Security on which the senior security executives of most of the world's hotel chains participated. They dialed in from California, Hong Kong, London and Brussels or wherever they were travelling. They networked into a dedicated website where documents were shared, updated and conclusions reached.

After an encouraging start to this regular teleconference and the unanimous agreement amongst all members that this was a 'non-competitive area' in which they had no trouble sharing best practices, we separated this Security Council into three areas; Terrorism, Natural Disasters and Pandemics, the latter in conjunction with the World Tourism Organisation and the World Health Organisation.

Participating on the Terrorism panel were Vice-Presidents of Security for all the major hotel groups and some smaller ones with an experienced General Manager from Israel who brought it to life in a very personal way.

During the course of our ongoing discussions, incidents transpired and members communicated amongst themselves. The London bombing of 7/7/05 was an early example.

From these events and hundreds of others, large and small that preceeded this Council, strategies, policies, procedures, training programs, inspections, analysis, re-analysis, daily briefings, revisions of capital budgets were discussed, debated, changed, updated and implemented.

The outcome, in my view was that the hotel industry, within the major groups was in very good hands and, as a veteran of fifty years in the industry, much better organised and implemented than I could have imagined.

International insurance companies, government agencies, security investigation services and many other organisations are involved in the excercise of keeping guests, employees, visitors and property safe and sound.

Some areas are riskier than others and therefore are subject to stricter rules. These rules can change daily, and do. The means of evaluating an area, a region or a city also change regularly. General Managers, Owners, Operators and local authorities participate and many superb systems are adopted as 'best practices'.

Most topics in our industry are easily discussed without danger of adverse fallout. Security is one that requires careful verification before carelessly branding the industry as non-compliant, because without that counterbalance of verification, we are contributing to the fear that drives terror.

There is another area that falls into a similar category...........but that is for another day!

For information on other issues in the industry that have been, or need to be covered, or for a security review of your facility, contact [email protected] 

A ROOM OCCUPANT IS AN OPPORTUNITY

LIKE THE AIRLINES WHO ADD FUEL CHARGES, SECURITY, TAXES, SURCHARGES AND OTHER CHARGES, HOTELS ARE NOW FOLLOWING SUIT.

The 'timeshare industry' refer to most of us as OPPS or Opportunities. They strategically hunt us, track us down to pitch and then sell us lifestyle. Hoteliers are more soft touch or at least were. Now when we check in, we are fair prey!!

Now the hotel industry is starting to cotton on to the concept of opportunities to raise the average expenditure from a basic room charge to a host of other goods and services. Not only are guests OPPS to the hoteliers, they are also OPPS to the politicians who view guests and visitors the world over as 'non-voting taxpayers' and now charities who have collectively added a slew of taxes and extras to the hotel visits, some voluntary, some not.

The days are gone where your room rate covered a range of goodies or enticements that served as standards of excellence, expressions of welcome, hospitality amenities but have now turned into a series of 'got yous'.

Here are the ones that are particularly annoying to me.

• Bed Tax                             
• Room Tax
• Gasoline Tax
• Internet Access
• Bottled water
• Room Service minimum
• Charitable donation

The other area which is less visible is 'yield management'. "Here is the price for the room on this slow day when you are welcome. However you are not so welcome on this busier day so we will 'get you' at this price, no apologies, not my fault, it is the system". I may not like it as a guest but I must accept it. The product is the same, the services deteriorate a bit because we are busy but you must pay a premium.

And perhaps worst of all are those 'great' hotels in developing countries that charge Paris, New York and London rates for 4 Star rooms and trainee services where labour rates for both construction and operations are a fraction of their big city-centre brothers and sisters, never mind the levels of services.

But no industry is perfect, but this one is near perfect to work in!! I love it but love to complain.

IS CUBA A POTENTIAL ASSET OR A LIABILITY

THE FUTURE OF CUBA IS BRIGHT BUT THINGS HAVE NOT CHANGED MUCH YET, BUT SHOULD THEY?

As a fan, aficionado, some would say a specialist in Cuban hospitality, I can unqualifyingly confirm that there are still enormous opportunities in Cuba now and for the foreseeable future but the novice should beware.......but get on a plane quickly.

The Bushes. The Clintons, The Castros.......no I am not a politician but there must be something in the air over the last 50 years because what goes around comes around. Would it not be great to put them at a dinner table or better yet, on a CNN debating panel with Ted Kennedy as the moderator?

There is something attractive about the thought of doing business in Cuba. The great news is that the best is still to come. The good is great now and unfortunately the bad is reserved for the locals.

Yes, there is great news for Cuba (and its neighbours) and this includes,

1. Cuba will become the fastest growing economy in the West in the next 7 years.
2. Their system does not work but they are working on improving it.....but at least they have a system!!
3. You are included in improving the system. Be non-American in your approach but American when you get established there! They love America.....just not the politics.
4. Their suffering or could I better describe it as 'tough times', will be rewarded.
5. The Floridian Cubans for whom I have enormous sympathy, are not seriously planning to return and will not influence the political future. They will of course influence the economic future.
6. Raoul, get out of the way. Your brother could not, for various reasons. If you have never experienced an airport welcome ramp in Havana when returning families lock in tearful embrace over carefully selected gifts after years of separation, you will never understand the real damage that has been done by both sides.
7. The electoral system works there. No problems that I know about with 'chads'. Cuba is supposedly Communist but I do not see it as such. I see it more as their own brand of Socialism. Sort of like the Canadian left on steroids! Poor comparison but I never claimed to be a politician.
8. Great leaders are in the wings. Albeit 'left wings! Watch out for the leaders currently behind Raoul. They are bright, eloquent, relatively young and well respected by the Cubans. And no, they will not, I believe allow the country to 'collapse' ..........a la USSR and Eastern Europe.
9. Now this is really ironic!! Cuba may be one of the last remaining places where Americans are actually truly liked. Not their politics but the people. This is an emotion that has been carefully crafted by Fidel over the years and for that I take off my hat. It would have been so easy to craft a national feeling of hatred. He did not choose that path.
10. Now if Hillary or Obama could just play their cards right, they could solve the whole US health issue in one easy deal that could mobilise the largest organised army of trained doctors, surgeons and healthcare workers and thereby fund the re-construction of the country along truly social lines.......quite aside from the many miracles gathering dust on the shelves of their highly advanced Bio-Chemical Research industry.

Now don't you wish you were Cuban in the next life?

For some more realistic suggestions on doing business in Cuba and within their system, contact [email protected]

A TIME TO REINVENT THE NATIONAL BORDERS

WE HAVE REACHED A TIME WHERE THE BORDERS OF COUNTRIES NEED TO BE TOTALLY REINVENTED.

"Before I built a wall, I 'd ask to know what I was walling in..... or walling out"

ROBERT FROST

The huge demand for workers everywhere will demand that developed and developing nations treat their borders in a different fashion than if they were walls.

People cross borders today not for immigration purposes, they cross borders to work. When they have finished working, they return home. If there was work at home, they would probably work there.

Those borders were invented years ago on pinciples that no longer exist today. Let's rethink them again!

I worked for a time with the world-renowned Cirque du Soleil, a Canadian company that is the hugely successful entertainment group that reinvented the circus, one of the world's oldest forms of entertainment. Their plan was to reinvent hospitality and I was recruited to lead the division that was charged with this wonderfully creative task. I will never look at our industry again in the same way as I did before.

With the strong belief that people will go where there is work and a better life, it is time to make it easier for them to do that. It is time for the borders to be reinvented. It is time for them to be re-thought.

Why are the borders there in the first place?

• To keep good workers out or
• to keep good workers in?
• To hinder the flow of cheap goods into our countries, or
• to hinder the flow of expensive goods out of our countries?
• To stop people that hate us from entering or
• to keep people that hate us from leaving?
• Because we do not have enough food, or
• because the food we have is different from what they eat?
• Because we do not have enough housing for them, or
• because there are not enough cars or buses to take them to work?
• To keep religions in, or
• to keep religions out?

It is also true that they cross borders for other reasons be it to shop,as was the case this week when the Palestinians from the Gaza Strip went shopping to Egypt, or to compete, as was the case this week in Melbourne, or later this year in Beijing. It is not always however to immigrate or emigrate.........which is the fundamental reason why borders were put up in the first place.

The answer perhaps is that we believe that these imaginary walls do in fact allow us to keep some things on one side and prevent other things from entering. They provide us with comfort from having our own turf, our own national back garden where the breeze is a friendly breeze, the rain soft and the seasonal scents familiar. Are we not prepared to share these joys with our global neighbours?

The thousands of jobs that are not filled represents millions of dollars in lost income taxes, lost contributions to National Pension Funds lost opportunities to reduce poverty.

It is indeed easier for a tomato to cross the border than for the tomato picker. It is easier for the virus to pass through customs and immigration than it is for the doctor or scientist who will fight it.

Perhaps now is the time to use that border 'rope' for more useful purposes.

For assistance in crossing borders legally, pursue a career in the hospitality industry and for advice on that, contact [email protected]

10 GLOBAL HOSPITALITY TRENDS IN HOTELS & RESORTS

WHAT IS HAPPENING TO OUR INDUSTRY OVER TIME? WHERE DID ALL THE GLAMOUR GO?

From time to time an industry expert will issue a set of Global Trends that are neither trends in the true sense....... or global.

On the eve of a large anniversary of mine in this industry served in a couple of dozen countries, I set out in this article, my view of Global Trends that I have gleaned from watching, listening and learning about our industry....every single wonderful day of my working life.

1. LESS REAL SERVICE. Look around! There used to be dozens of staff around. Now one is hard put to find someone without having to queue....at the Front Desk or Reception to check in....at the restaurant for a table at breakfast......at the concierge...everywhere. Well at least they wrapped the ropes in red velvet!! There is less service provided by the staff and more service provided by the guest. This is evident in everything from making one's own reservation, checking in, unpacking, making a telephone call, help yourself breakfasts, wakeup calls, used room service trollies, hanging wet towels, market research disguised as a registration card. The term user-friendly has been accepted as a replacement for service. This is not necessarily less of an experience, it is merely different.
2. FOREVER CHANGING EMPLOYEES. There are less applicants for jobs and they stay in the job less time either by their choice or ours. They are largely foreign workers in the urban developed world and untrained but willing workers in the developing world. The shortage of 10-15 million workers in this industry will result in hotels having insufficient workers to operate, exploding salaries, eroding profits and increased illegal immigration. Multi-tasking employees would allow more productivity but will be difficult to impossible in Union controlled situations. Management has also morphed from largely European to largely Asian.
3. HYPER-ACTIVE OWNER GROUPS. Owners are less likely to be individuals and more likely to be corporations. They are often represented by Asset Managers who act like managers, micro-managing everything daily. Owners are hyper active now and were super-passive before. They want rapid financial returns and will dispose of the asset far quicker than in years gone by.
4. MULTIPLE BRANDS FROM THE SAME MOULD. Chains are so hungry for expansion, they now lack consistency from one hotel to another or from one country to another. Rather than fix an old chain, it is easier to create a new one. There are more brands offering the same base product with virtually no differentiation. What has transpired is that gradually the character has been squeezed out of the hotel and replaced by a homogenised version of hospitality characterised by that horrible enemic expression, "Have a nice day!"
5. MANAGEMENT COMPANIES. The function of a third-party management company has been largely replaced by technology. Best Practices and performance measurements are easier to communicate and measure through technology and does not require a headquarters overhead to deliver or monitor personally. Today's battlecry is more that "you can teach an old dog new tricks!"
6. RELATIVE LUXURY. Luxury is a term that is becoming looser and less-defined and now differs from one client to another. What is luxury for an entry-level worker may not be luxury for a rockstar. A Western construction worker can afford luxury and international travel today but could not years ago. A Chinese or African construction worker can not afford luxury today but may well enjoy it in the forseeable future.
7. ACCUMULATING HOTEL NAMES. They now get longer with age. A rebranded hotel may well keep its' original name, add a qualifier or two with a brand name bolted on at the end or the beginning. What was the "Grand Hotel" may eventually become The Marriott Grand Hotel & Spa Toronto Midtown........and if you tack on ".......and how may I direct your call?", the greeting becomes a jaw-breaking yawn, just like "have a nice day".
8. QUALITY CONSISTENCY. This is no longer any more predictable than the weather. At a time when the employees were 'lifers' and recognised instantly a returning guest, they are rarely there for any more than a few months. Add to this the restrictions of an owner who will not reinvest, a brand that is hungrier to grow than consolidate or a manager that is entirely focused on the bottom line....and you produce inconsistencies in the hotel itself, between the brands, the countries and the individual hotel experiences. The exception.....a massive movement toward 'fresh' and 'locally produced'.
9. PRICING BY GREED. While in days gone by, pricing was largely based on the cost of the product, today it is largely based on demand. In these circumstances, one can pay a fortune for a product that costs pennies but rarely benefit from the cost-based, cheaper product in slow periods.
10. LESS FORMALITY. The days before first names, paper napkins and plastic cutlery were days when men were men, ashtrays were ashtrays and waiters had last names. Days with quill fountain pens at registration, starched white tablecloths for breakfast and liveried butlers at teatime. Tuxedo dinners with candlelight and harps preceeded by huge mind-numbing Martinis and followed by port and cigars in the mens lounge. Foot poofs for the ladies feet......cigarette lighters at the ready, silk stockings..... but no silk flowers...."Hi you guys. ..my name is David, I will be your waiter this evening!"

And while some of these trends are easier to identify as having an obvious base in the developed world, all are relevant to some less exagerated degree or another in every country in the world.

And for a brief look into the future of all this, take a look at these articles,

For Hotel Owners, check out this Blog, where you can make your own franchise, http://davidmcmillangroup.typepad.com/consulting/2007/06/franchising_in_.html

For Hotel Employees, check out this Blog, if you fancy being an astronaut http://davidmcmillangroup.typepad.com/consulting/2007/05/can_you_imagine.html

And while many would take from this set of Trends a negative thread, I would quickly add that there is an exciting Positive Outcome that is emanating from each one of these trends which includes,

1. An exciting link between Hospitality and Entertainment which will attract Generation X.
2. A friendlier more casual, less ostentacious environment in which to work and stay.
3. A more profitable investment with quicker returns.
4. Less consistency, more surprises, most pleasant and more genuine.
5. Enjoyable jobs anywhere in the world..... for life.
6. More consumer access to the truth.
7. Better, healthier way to travel
8. Sustainability and variety.
9. Reduced poverty through labour pressures on our borders.
10. International, exciting, variable industry careers, reduced turnover.

For more information on this still very glamourous industry, contact [email protected]

THINK LOCAL, ACT LOCAL, PRETEND GLOBAL

GLOBAL HOSPITALITY GIANT IDENTIFIES TOP 10 MACRO GLOBAL TRENDS

From time to time, global hospitality consulting agencies release what they describe as Global Trends. Even though these Consulting Groups have offices in countless cities around the world, these Global Trends rarely enjoy any input from their geographic outposts.

The result is that Global Trends are in fact Observations or Regional Thoughts from the country in which the HQ Consulting Group is based.

The Top Ten Macro Trends released by a major 'Global' Hospitality (Consulting/Auditing) Firm are either, in my opinion, a very poor excuse for self promotion, an arbitrary collection of ten thoughts, the result of a consultant's slow day..... in fact a waste of electronic ink.

And here they are summarised,

1. Supply playing Catch-up.
2. Luxury Brands...in the Fast Lane.
3. Increased Construction costs.
4. Creative control of Operating Costs.
5. Capital global.
6. Western Hemisphere Travel Initiative.
7. Transaction Environment
8. Private Equity - non-Traditional
9. Condo hotels' growing pains
10. Disaster resiliency

Why is it a waste of electronic ink?

Because these trends are largely and principally for one country only and, if the truth be told, they are not really Trends, they are Observations, in fact Thoughts. There is not a Trend (or Observation) that could be truly and accurately called Global or a Global Trend, not one that could cross borders , not one that would be identified with the three fastest growing economies in the world.

Perhaps we might find that the credits divulge some global connections. Unfortunately not. Of the 17 references to other publications, 2 reference the disaster incidents and 1 mentions Asia and are the only ones that have any real connection outside the USA.

And China......the world's largest source of influence in our industry and the creation of at least half the real or imagined trends is not mentioned at all.

Actually this is not a joke because the banks and financial institutions listen to their advice and use these firms for their audits and feasibility studies, not a joke because these same banks and institutions rely on their opinions internationally, not a joke because through these trends the world loses a little respect for these International Consultants. An example in a previous year when the global report referred to the trouble in the Gulf States and we learned that the trouble referred to was in the States surrounding the Gulf of Mexico!

If it is not a joke then what is it?

• Are they lies? No I believe this company believes them to be the true global Thoughts. They are however a distortion of the truth.
• Are they semi-lies? Only in the context that they are not really Trends or directions and not really global.
• Perhaps they are more like fiction? No, they are actually US Non-Fictional micro-thoughts and International US Observations.
• Non factual? Not exactly, merely slanted to reflect or intimate that the world is virtually or perhaps.an extension of the USA.
• Are they perhaps what people without passports imagine the rest of the world to be like and therefore what the trends would be?
• Are they imaginative? Perhaps the consultants have been asked to use their imagination? They are therefore not lies if the authors believe them to be true.

They do come from a company of world-renowned Auditors......in fact one of the largest auditing firms in the world. So factual is sometimes a relative term..... or perhaps the truth can be bent if done by auditors.

It is not a joke because the word 'global' means big picture, international, all encompassing, borderless, including all countries, cultures and communities. In terms of trends, they would have to understand what the trends are in all regions, all sub-regions and the authors would need to weigh and evaluate them in importance.

It is also not a joke because of the Ten Trends identified, most are not in fact 'Trends', they are thoughts. Perhaps a breakdown in communications between the authors of the document and the website

The article concludes with the Global Hospitality Contacts from Asia (actually Japan), Australia, Europe (actually Germany), India, Caribbean (actually Miami), Latin America (actually Miami) the Middle East (actually UAE) and Russia and the inference is that they all were involved in the preparation of this document.

The article actually only infers they were written by these global representatives. Inferences are good because they allow a global giant to make believe. But I fail to believe that the representatives from these various locations did not have some thoughts of their own. With Asia and the Middle East highly prominent in hospitality issues......nothing. No reference to China's effect on the world tourism community or the growth in outbound traffic. No thoughts at all on the war and the effect on tourism to that area. No observations from Latin America, home to the third fasted growing economy in the world, or Europe where the ranking for the top tourism destinations in the world might change.

Has the time come to certify a globalist? Has a time come to certify a consultant? Has a time come to establish standards for the opinions of those who profess to speak globally and internationally on behalf of the world, but only have known a small section? Has the time come for us to separate those that do numbers from those that do words. The answer is probably "No."  As always, the policing for these things must come from within.

The time definitely has come for industry leaders to demand that its advisors be factual and truthful, which in my mind means that Global Trends are in fact Trends and are determined by truly global industry leaders, not from professional un-named observers.

I do admire this consultancy's Code of Ethics, and suggest a periodic review!

1. Working with One Another
2. Working with Clients and Others
3. Acting with Professional Integrity
4. Maintaining our Objectivity and Independence
5. Respecting Intellectual Capital

However, on a slow day, they is no telling what will come out of a Consultant's mouth as Global Thoughts.  I know because I am a Consultant!

For another version of Global Macro Trends, contact [email protected]

David McMillan is the former CEO of the International Hotel & Restaurant Association, the official voice of the hospitality industry.

THE WORLD'S TOP TEN FOOD CITIES.....SAYS WHO?

FORBES ANNOUNCES THE TOP TEN CITIES IN THE WORLD FOR FOODIES.

A more well respected business organisation or publication would be hard to find. However, the day when they venture into unknown territory is the day when we can truly value their judgement and objectivity.

Is the author the global 'bon vivant' that we imagine? Has he or she or they truly matched up the values on which these culinary destinations must be judged? Are these judges the same as those who plan our portfolios?

Perhaps Forbes should go back to their core business. This Top Ten should be shredded. http://www.forbes.com/travel/2007/07/30/food-travel-cities-forbeslife-cx_sv_0731travel.html

Here are the Forbes results by region,

Americas (North, Central, South)             3     (USA only)

Europe /ME/ Africa                                        5    (Italy 2, UK 1, France 1, Spain 1)

Asia/Pacific                                                        2  (Singapore 1, Australia 1)

Notable by their obvious absence are the great and varied cuisines of China and Mexico and also completely missing are Japan, India and South America. All are remarkable due to their regional cuisines and centuries of agricultural and culinary history that drive the taste buds, appetites and meal compositions in the simplest of families.

Overlooked and without mention are the cities whose culinary history precedes the formation of some cities lauded...such as Marseille, Chongqing, Brussels, Kuala Lumpur, Istanbul, Lisbon, New Delhi or Buenos Aires.  Obviously off the radar for other unknown reasons are such jewels as Marrakech, Hongkong, Milan, Vienna or Lyon.

Perhaps judged by the reputation of their best restaurants rather than by the standards set by the community itself sees cities like Las Vegas, Los Angeles and New York beat out the well-educated, well nourished, well proportioned 'foodie' populations of Rome, Toulouse, Budapest, Beijing, Beirut and Nice whose inhabitants bathe daily in the culinary delights of their local produce and the 'father to son' techniques of their grandparents and families.

Pronouncing the USA as the leading culinary destination in the world is an unfortunate , even an arrogant mistake. Having done that, selecting NYC, LA and Vegas over New Orleans, Miami, San Francisco or Chicago only proves that the authors of this survey must have conducted the research from their desktop, either by a process of analysing Wall Street 'expense accounts' or by an ethnic count in the boardroom.........or even darts at the local Irish Pub.

For heavens sakes I hope and pray that their stock valuations and picks are done with a more objective approach to the subject.

For a complete evaluation of your Stock Portfolio, don't contact [email protected] . For my own Top Ten, check this space in a day or two!

A CRIME OF OMISSION?

WHY IS THE 60 YEAR OLD INTERNATIONAL HOTEL ASSOCIATION RELEVANT AND WHY DOES THE WHOLE HOSPITALITY INDUSTRY NOT ACT GLOBALLY?

"Think Local. Act Local. Pretend Global".

I have recently completed two gruelling but enjoyable years as CEO of the International Hotel & Restaurant Association (IH&RA), the association that is the only voice on the global stage representing every hotel & restaurant in the world, whether they like it or not.

Most who should belong however, do not!!

IH&RA is indeed an effective and necessary voice for the industry that acts as a fierce watchdog and highly pro-active force for hotel owners and operators. Check their website at www.ih-ra.com

Unfortunately their membership dues rarely cover their basic operating costs. They will not and can not say that! They must suffer in silence. Each year, loyal Directors pay from their own personal pockets to cover the basic operating costs. Meanwhile, the industry enjoys unprecedented profits and ignores its responsibilities to their causes.

Representing every national hotel and restaurant association in the world at the United Nations and other International agencies, which formally recognises IH&RA as the 'official voice', it is in fact only supported financially by a minority.  Some of those that are not members are major developed countries like Spain, Italy, Brazil and Mexico. Ironically and amazingly, other loyal countries that are strong and active paying members through thick and thin include Iraq, Sri Lanka, Peru and Latvia. Areas that are poorly represented by paying members include Africa, South America and SE Asia although all benefit, although not as much as if they they belonged.

Is it fair that some of the biggest countries (and chains) in the world are subsidised by the poorest? Is this the way that capitalism works?

Hotel & Restaurant Chains participate by framing the way in which the IH&RA uses its muscle, providing expertise to ensure that the voice is current, relevant and powerful. Of the 10 largest hotel companies in the world, only 4 are paying members........the rest benefit and do not pay. Of the 10 largest restaurant companies in the world, only 2 are paying members.......the rest benefit and do not pay.

Does this make sense? Is this a responsible industry that cares about the future? Are the issues that you deal with being dealt with correctly?

It is highly relevant to observe that there are a number of small and medium sized companies that are long-standing loyal members and it is interesting to note that most of them are led by owners, rather than employees. It is in fact the owners that see the benefits. They see the work that IH&RA does effects their bottom line. They also see the need to focus on tomorrow, to take responsibility for contributing........ not only focusing on shareholder value today.  They are the responsible businessmen and women who write cheques for IH&RA at the end of the year so they can pay their bills.

It is safe to say that those that are not members still ultimately benefit from the outcome of the work IH&RA does. It is also safe to say that those that do belong do benefit additionally from actively 'associating'. This is the act by which members interact with other members for mutual benefit. This is global hospitality communications. This is the fuel with which an association is driven. This is a fuel which is gradually diminuishing from hospitality as 'non-hospitality-brand-managers' assume leadership and eliminate what they consider to be non-critical costs.

This is an industry crime which must be solved. It was not a crime which I or my predecessors could solve when we were CEOs. We were representing the industry, we were their voice whether they belonged or not.  If they did not, we were still urging them to join, still representing them officially, still speaking on their behalf, still expecting our telephone and EMail messages to be returned, still pretending they were on our team.

The IH&RA has been the industry voice for 60 years, it has relentlessly fought the industry's battles, spoken on its behalf, travelled to the source of the trouble, lobbied, fought, created positions, gained support, strategised, consulted, consorted, monitored, conventioned and seminared, moderated, spoken, networked and battled special interests, government agencies, international organisations and the media.

This is a Case Study....it is not actually a Completed Project. It will not be until we, as an industry, have established the IH&RA as a strong and viable organisation supported by every eligible chain and country in the world, whether they like it or not.

After all, we are one of the richest industries in the world. Our 'voice' can not falter.

But so long as the industry leaders continue to think that 'international' is everything else that is outside my country, the hope of a truly global industry dialogue will be left to those few who truly have a vision.

If you want to know if your chain or country is actually a member or if you wish to assist or know why you should or how you can, please contact me at [email protected]

GLOBAL HOSPITALITY DIALOGUE

A CASE FOR THE FORMATION OF GLOBAL HOSPITALITY COUNCILS

Most of us attend industry conferences in various parts of the world and experience efforts by leaders to debate the global issues. Hardly any are truly global and, due to time constraints debate is minimal and since the conferences are usually annual, there is little continuity to the dialogue.

As the CEO of the International Hotel & Restaurant Association in 2005 and 2006, I saw the acute need for ongoing and continuous dialogue between specialists in the industry on the issues of the day. As the official voice of the industry at the IH&RA, this gave me the opportunity to 'dip my tongue in the brain' of the membership before formulating a position. While with the IH&RA,  several global councils were formed with over 100 senior specialists from around the world.

While most were senior specialists from the major brands/chains with global responsibility, others were specialists or representatives from smaller companies or national associations. Where necessary, confidentiality agreements were put in place or an anti-trust lawyer participated to ensure no boundaries were crossed.

As a reference point, the specialists were from the following areas and in some, separate councils were formed,

1. E-Marketing (Trademark Protection, Best Practices & SEO).
2. Human Resources  (Labour shortage/mobility, Management diversity, Education)
3. Food & Beverage  (Safety, Labelling, Alcoholism, Trade Barriers)
4. Security  (Terrorism, Natural disasters, Pandemics)
5. Corporate Social Responsibility  (Sustainability, Sexual Tourism, AIDS)
6. Legal & Finance  (Standards & Classification, Copyright ,Collection Agencies)

The experience to chair these one hour teleconferences for each Council was one of the most rewarding experiences of my career as we gradually drilled down into the guts of every issue and then shared relevant documentation on an interactive website protected by password.

Here are the general rules of engagement,

1. Management. Chairman appointed for each region. Deputy in case of absence.
2. Numbers. 8-10 persons participating.
3. Method. Teleconferences only (Video accepted).
4. Frequency. Every 2-3 months or as required. Council disbanded when issues resolved.
5. Length of Debate. Maximum 60 minutes.
6. Content. Agenda 7 days in advance.
7. Records. Minutes within 7 days of teleconference.
8. Lessons learned. Cellphone attendance is not advised. Mute the phone if calling from airports.

In the interests of continuing this dialogue and contributing to the identification and solution of the industry's major challenges, I believe strongly that the industry must create ongoing dialogue that address the issues globally and then take pro-active steps to provide solutions.

Some of the input and output will need to be debated and distributed in other languages such as Spanish, French, German, Chinese, Arabic, Russian and Portuguese.

We also read the Global Trends from the Consultant Giants that appear to have been written from the perspective of one country or region by industry observers rather than by 'hands-on' practitioners.

The excercise would start by each of the ten regions identifying the five most important issues that they face. Once there is consensus on the top ten worldwide issues, the group will then be asked to identify the strategies and actions that must be taken by the industry, by governments, by international organisations to address the challenges. The regions would, in my opinion, be set up as,

1. Americas (English)
2. Americas/Europe (Spanish)
3. Americas/Europe (Portuguese)
4. Africa/Mid East (French)
5. Africa (English)
6. Mid East (Arabic)
7. Europe (English)
8. China (Mandarin)
9. Russia (Russian)
10. SE Asia/Australia/New Zealand (English)

A ten member Global Council of Leaders would then determine the best course of action, establish a budget and a means of executing the plan. It is quite likely and natural that international bodies would participate in the execution.

Opportunities to sponsor the work of these groups could be made available to interested groups so that the operating expenses of these groups can be covered.

A series of global discussions is needed immediately to address the issues that our global industry faces. For more information, to comment or register for participation or a sponsor, contact [email protected] mentioning Global Councils in the Subject area.

WHO CARES?

WE SEEM TO NOT CARE TOO MUCH ABOUT THE BIG ISSUES.

It really does concern me that the leaders of the world's largest hotel chains are not joining together as a team to deal with the big issues of the future but it is not only the hoteliers who are at fault.

Just look at Golf ......

Golf is a major contributor to Tourism Services and is a segment that is growing exponentially, in spite of global warming....or maybe because of it. Ruled as an industry and as it should be by itself, The R & A is the body responsible for rules and standards and who have done an admirable job of it for over 250 years.

It is therefore particularly disturbing that ISO, the International Standards Organisation is leading the task force of determining international standards in tourism services which one day might well include the services and standards of golf around the world.

Is the Royal & Ancient at the table during these discussions? No. They do not have to be because when ISO decides to develop a standard, it will be done by a group of experts, usually consultants and special interest groups. Of course these will include environmentalists,  recyclers, naturalists and government tourism officials all of whom have a passing interest in golf. Should the Royal & Ancient decide to attend, their voice will perhaps be one of 10 or more. And will their vote be counted............no, because they have no vote at all.

With the actual rule changes under discussion, the Royal & Ancient may change the club face to make it harder for us to get out of the rough, or change the ball so that it does not go so far. Colin Montgomerie prefers the first and Jack Nicklaus, the second.

If ISO was managing this, the environmentalists might object to millions of us chopping up the rough to get the ball out while the recyclers would object to making hundreds of million balls obsolete. The compromise might be greased handgrips & oval balls.

But I am off my subject.

What should the hotel leaders be discussing amongst themselves and working on proactively? Here are three that never seem to make the top 10 Global Trends, each one with the likelihooh of affecting the industry by billions,

1. A '10 Point' Plan to avert the Hospitality Human Resources Crisis.
2. Hospitality Best Practices that contribute to the reduction of Global Warming.
3. A position on ISO's establishment of International Standards in Tourism.

The world is moving faster to globalise than most of us realise and the decisions are being made by special interest groups and the outcomes are not funny. The time has come for leadership.

For more information or to contribute to the dialogue on this or other issues, contact [email protected]

ASCENT FROM THE BOTTOM

HOSPITALITY............A CAREER TO DIE FOR

Too many young people leave our industry before they start. Some leave from their first position, others study it and then leave for another industry. Some because of high immediate expectations, others for quick money up-front.

If they only knew what they were missing!!

My own career path was not exactly meteoric but fun, rewarding, scintillating at times, educational, but never dull. In fact, I have said repeatedly that I don't feel I have worked a day in my life. It is a way of life. In a nutshell, this was my way!

1. Cellar-boy,              ....oh boy, making ice cubes with a pick from a block of ice.Sorting bottles.
2. Apprentice cook,      .... peeling potatoes and graduating to aboyeur, saucier and to Maxims!
3. Bartender,               ..... lugging & unplugging beer barrels and on to that perfect martini.
4. Waiter,                   .....only Anglo in an all-Italian dining room in a classic Swiss hotel & then Paris.
5. Receptionist,            ....toe to toe with the guest on every issue. Greeting, sweating overbooking.
6. Cashier,                    ...Counting, re-counting, balancing. To here took two years!!
7. Assistant Manager,    .... phew, I think I am going to make it....12-16 hours a day.
8. Sales Manager,         ....walking to sales calls in sub-zero weather. Pitching, listening.
9. General Manager,     ....at 31 years old. An opening and with Four Seasons Hotels.
10. District director,        ....after 5 shots at GM in 5 countries, my chance to learn from 12 GMs!!
11. Technical services director, ....purchasing, design, renos, F&B, yield mgt.
12. Vice-president,         .....12,000 employees, 50 hotels.....and then a Circus reinventing hospitality.
13. President,               .....the Buck stops here, or does it? Plus a new challenge, timeshare...in Cuba.
14. CEO                       .....the 'voice' of the industry. World travel. Paris again.
15. Consultant              ..... an opinion, a position, advice and future predictions, solutions.

Slowing down? Hell no!! There are at least a couple more spaces for notches on my barrel and there's too much to do.

What does this industry offer a young person today. Here are my Top Ten reasons to be in Hospitality.

1. Hospitality is fun, highly social, financially rewarding after a couple of early years.
2. It is now inextricably linked with Entertainment, Design & Fashion.
3. Success is almost guaranteed. Shortages in the industry of many million ensure that.
4. Enormous opportunities to travel anywhere in the world.
5. Global friendships for all family members.
6. Opportunity to learn new languages and be exposed to new cultures.
7. You can still start at the bottom and work your way up.
8. Pleasant multi-cultural, multi-national work environment as part of a team.
9. Excellent Career assistance from many hotel groups.
10. Contributes to Global Peace.

My work took me from England to Switzerland, France, USA, Canada, Dominican Republic, Jamaica, Curacao, El Salvador, Mexico, Saudi Arabia, Cuba, Kenya, China, Malaysia, St Lucia, India and Israel.

Can you ask for a better way of living?

For more information, contact [email protected]

INTER-RACIAL TEAMWORK

RELIGIOUS, RACIAL AND CULTURAL TOLERANCE

Having successfully opened and operated a hotel in the Ultra Orthodox Muslim city of Riyadh, Saudi Arabia and then on the strength of that been contracted to open and operate an Ultra Orthodox Jewish hotel in Jerusalem, I feel that I and my colleagues throughout the industry have something positive to contribute on the debate on 'tolerance'.

As the only white man on an all black cricket and soccer team in Jamaica, I also feel that I can contribute to the debate on racial tolerance or to be more specific, colour blindness.

As one of only 8 Christians in a muslim workforce of 500, I observed 26 nationalities pull as if they were one, fight like family and play as a team.

Having lived in 12 countries in my work as a hotelier and done business in another 12, I have observed the total lack of intolerance in hospitality..............and also sport.

Tourism promotes tolerance as few other industries can.

Can we perhaps see the day when the racial, religious and cultural homogeny of hospitality becomes an epidemic. As time passes, we are contaminating the world with our tolerance and colour blindness.

Now that is sustainability!

To comment on this or any other opinion expressed here, contact [email protected]

A CRITICAL HUMAN RESOUCES ISSUE

DOES THE INDUSTRY FACE A LABOUR CATASTROPHE?

Have previous generations had to deal with the acute labour shortages that hospitality faces now and over the years to come? Are there precedents to the drought of labour that the hospitality industry faces over the next 10-15 years?

Tourism has grown exponentially with the birth of mass air travel to the point where there is no place on earth where tourism is not an opportunity and is not potential for some form of travel or another.

Our industry now employs approximately 100 million people.

Add to that the fact that space hotels will be developed and additional hospitality employees will need to train as astronauts within the next 20 years and one can easily see that the quantity that the industry will lack in 10-15 years could easily reach 15 million.

Supply and demand will push wage rates up exponentially.

Now let's be clear, we are not short of workers, they are just in the wrong places and can not get to where the work is. Does this sound familiar to the days when labour was needed for agriculture (sugar and cotton), construction (roads and railways) and hospitality (maids and butlers).

It was over 10 million then and we predict 10 million tomorrow. We have learned our lesson and will never repeat the tragedies of the Slave Trade but what will be different in the 21st Century from the 18th century? What has changed that will allow us to move 10 million workers again to where there is work and where everyone benefits?

1. Travel will be voluntary.
2. Air transport allows comfortable travel everywhere at relatively low cost.
3. Workers can be moved to where the work is for brief periods of the high season and then return home enriched financially and experiencially.
4. Employers will pay full rate or union local wages plus transportation costs both ways.
5. Workers can repatriate some of their wages to their families at home.
6. Employers will act as trainers.
7. Workers return home within a year with worldly experience.
8. Developing countries create employment while preparing their people for tourism.
9. Workers are repatriated after each contract and are not emigrating.
10. International Organisations collaborate on working conditions, identity checks, travel documents and perhaps hi-tech ID cards.
11. Receiving countries enjoy increased income tax revenues.
12. Seasonal layoffs are turned into a working travel experience and industry turnover is reduced as workers realise this is a full time professional career.
13. Technology permits rapid communication of supply and demand.
14. Workers will not need to stowaway on rickety ships, airline undercarriages or climb border walls.
15. Employers will welcome these travelling ambassadors as precious contributors to their bottom line.
16. Workers will move on with an enhanced CV, new skills and family savings.
17. Walls of intolerance will crumble and cultures will blend.

The machinery is in place already. A consortium has been formed between ILO, IOE, IUF (see below) and the international industry association and the only pieces that are missing are,

1. Chain support. Most CEOs deny, ignore or delegate the impending catastrophe.
2. Financing. The consortium needs legs.
3. Political will. Receiving and sending countries need to put the pieces in place through the UN. The World Tourism Organisation is probably the most appropriate.

For more information, contact [email protected]

ILO    International Labour Organisation

IOE    International Organisation of Employers

IUF    International Trade Union Federation.