HOTREC presentation 18.2.2009 - ENAT | European Network for ...

The financial/ economic crisis
and
the European hospitality industry
By Marguerite Sequaris,
CEO of HOTREC
EP Tourism Intergroup, 18 February 2009
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Contents
I. Brief introduction to HOTREC
II. The crisis and the hospitality industry
III. Some data
IV. Call upon European Institutions
EP Tourism Intergroup, 18 February 2009
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I. Brief introduction to HOTREC
‣ Represents
hospitality industry
at European level
‣ 40 National
Associations
‣ in 25 European
countries
EP Tourism Intergroup, 18 February 2009
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I. Brief introduction to HOTREC
(cont’d)
European hospitality sector
• 1.6 million enterprises
• 9 million persons employed
automotive production + sales + servicing: 6.3 million
agriculture: 10 million
• 163 billion EUR value added
chemical sector 170 billion EUR
EP Tourism Intergroup, 18 February 2009
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I. Brief introduction to HOTREC
(cont’d)
European hospitality sector
• 99% of enterprises employ < 50 people
• these 99% make up 62% of value added
• 92% of enterprises employ < 10 people
EP Tourism Intergroup, 18 February 2009
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II. The crisis and the hospitality
industry
In a nutshell:
Crisis combined with confidence
Direct impact on industry
• business travels
• business events (congress, seminars...)
• private trips/outings
• search for cheaper prices
• cost of credit
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III. Some data
European economy
GDP:
by 1,5% compared to 3rd quarter 2008
Unemployment (January ’08 – January ’09)
from 6,8% to 7,4% in EU27
from 7,2% to 8,0% in Euro area
EP Tourism Intergroup, 18 February 2009
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III. Some data (cont’d)
Confidence in European economy
Drop in Economic Sentiment Indicator
(Dec ’08 -Jan ’09)
ESI down: by 3,3 points in EU27
by 1,5 points in Euro area
Biggest decline registered in services sector (-4,9)
- Especially with regard to evolution of demand
EP Tourism Intergroup, 18 February 2009
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III. Some data (cont’d)
UNWTO World Tourism Barometer
International tourist arrivals
World Europe
On average between 2004 and 2007 +7% no data
January to June 2008 +5% +3,4%
June to December 2008 -1% -2,5%
In 2008 (thanks to 6 first months!) +2% +0,1%
Europe with worst performance in 2008!
EP Tourism Intergroup, 18 February 2009
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III. Some data (cont’d)
UNWTO World Tourism Barometer
Prospects for 2009
for the world
• stagnation
for Europe
stagnation
• or slight decline (-1% to -2%) or -3%
EP Tourism Intergroup, 18 February 2009
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III. Some data (cont’d)
Deloitte & Touche
Hotel performance:
• Occupancy: 69,3% (2007) down to 66,9% (2008)
- most affected: Prague, Rome, Dublin (~ -9,5%)
- no European capital in +
• Average room rate: stagnation
• RevPAR: -4,2%
EP Tourism Intergroup, 18 February 2009
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III. Some data (cont’d)
Deloitte & Touche
Prospects:
”2009 a challenging year for hoteliers”
”Hotels to see fewer room nights at lower prices”
EP Tourism Intergroup, 18 February 2009
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III. Some data (cont’d)
Rescue programmes at national level
Baltic states
- Increase of VAT (from 5% to up to 21%)
- Bankrupcy of Lithuanian airlines – fewer direct
flights
☺ Spain: Plan renove turismo
- Facilitating investments
- Subsidised interest rates
- Grace period
EP Tourism Intergroup, 18 February 2009
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IV. Call upon European Institutions
HOTREC calls for a re-assessment by the
Commission of its working programme
Letter to President Barroso
Review of working programme and working
methods
"Survival" calls for reducing burdens to a minimum!
EP Tourism Intergroup, 18 February 2009
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IV. Call upon European Institutions
(cont’d)
Letter to the Commission
• Redirecting development of measures away from
"red tape" or additional burdening of enterprises
e.g. food labelling proposal
EP Tourism Intergroup, 18 February 2009
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IV. Call upon European Institutions
(cont’d)
Letter to the Commission
• Stricter application of "better regulation" policy
e.g. impact assessment to food labelling:
"no systematic research answered the question
of how much such a provision would cost"
EP Tourism Intergroup, 18 February 2009
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IV. Call upon European Institutions
(cont’d)
Letter to the Commission
• Stricter application of "better regulation" policy
avoid duplication
e.g.:
▪ smoking:
- DG SANCO
- DG Employment
▪ study on hotel safety: - EP
- DG SANCO
EP Tourism Intergroup, 18 February 2009
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IV. Call upon European Institutions
(cont’d)
Letter to the Commission
• More respect of subsidiarity principle
e.g.:
▪ smoking
▪ forum on nutrition
▪ forum on alcohol
EP Tourism Intergroup, 18 February 2009
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IV. Call upon European Institutions
(cont’d)
Similar demands are addressed to the EP
in relation to
• "red tape"
• "better regulation", in particular
- business impact assessment
- duplication of work
• "subsidiarity"
EP Tourism Intergroup, 18 February 2009
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IV. Call upon European Institutions
(cont’d)
Overall objective
Create the conditions for
• economy to recover
• growth to florish
• employment to redeploy
Survival of the 1.6 million enterprises as well as the
future of 9 million employeesare at stake
EP Tourism Intergroup, 18 February 2009
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Thank you for your kind attention!
www.hotrec.eu
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