HOTREC 79th General Assembly Meeting was held...
The 79th General Assembly of HOTREC (the European Hospitality Industry association) was held on October 17-18, 2019, in the city of Dubrovnik, Croatia. Our Association was represented at the event by Vice President Armin Zerunyan.
The meeting notes are as follows;
• Opening remarks by Velijko Ostojić, President of the Croatian Hospitality Association; Nikola Dobroslavić, President of the Dubrovnik - Neretva Region, and Frano Matušić, Secretary of State for the Ministry of Tourism.
• The minutes of the last General Assembly were approved.
• A presentation was given by HOTREC President Jens Zimmer Christensen.
- The hospitality sector provides 12 million jobs in the EU. It is the 3rd largest industry.
- Professional skills need to be transferable among EU countries.
• A report on HOTREC activities was delivered by Christian de Barrin.
Changes in the HOTREC team were announced.
- Serbia is joining HOTREC as an observer member.
• The 2019 HOTREC budget was presented by Adrian Cummins.
- 2019 budget €975k, 91% paid.
- Unpaid fees: TUROFED's 2017 membership fees remain unpaid. A court case has been opened in Brussels for collection. The next hearing will be held on November 7, 2019.
• New members as of January 1, 2020:
HORES - Hotel and Restaurant Association of Serbia, Hosteleria de Espania – Spain, Bulgarian Hotel and Restaurant Association
2020 Budget
2020 membership fees will increase by 1.26% in line with EU inflation.
2020 revenue: €985,220
2020 expenses: €961,505.
The 2020 Budget was approved.
• Laurent Duc, President of UMIH Hotellerie of France, was elected as the new Excom member.
• EU Lobbying over the next 5 years by Andras Baneth, Managing Director of the European Public Affairs Council:
- How is the EU viewed by the public in member states?
Highest in Poland at 84%, lowest in France at 51%, EU median 67%.
- There are a total of 751 members in the European Parliament; if the United Kingdom leaves, this will fall to 705.
The change in the European Parliament following the U.K. could increase the influence of populist forces.
- The composition and representation of different political views also affects the weight of a country in the EP.
- The most important question for the next 5 years is: will there be more or less integration among members?
- The "4 P" focus areas for the next 5 years: people, process, policy and provisions.
There are serious challenges for tourism matters at the EU level.
- Thomas Cook is a major problem.
- Potentially 2.4 million visitors to the Canary Islands will be unable to travel in Q4/2019. A similar situation exists in Greece and many other destinations.
How to make the most of digital applications?
- Every minute, 5 million pieces of human experience data are shared worldwide.
- Travel is the first discretionary spending category in Europe, while it ranks 4th in the United States.
- 49% of all bookings happen online, and 89% of travelers and leisure spending are influenced by online data.
- 2018 marketing spend: Expedia $5.6 billion, booking.com $4.9 billion.
- Google Maps is becoming the next major search engine for bookings.
• The impact of Thomas Cook's bankruptcy on the Greek hotel sector, 2019-21, by Alexandros Vassilikos.
- 12% of all hotels in Greece were working with Thomas Cook.
- The unpaid invoices alone, and only for 2019, have an impact of €190 million on Greek hotels.
- As a result, the total impact on the tourism industry in Greece is €314 million.
- The total impact on Greek hotels in 2020 could be around €500 million.
- The total tourism impact in Greece could potentially be €929 million.
• Thomas Cook in Belgium
Belgium's travel guarantee fund stepped in immediately after the insolvency was declared, ensuring the safe return of all travelers in Belgium and providing refunds to those who were unable to travel after the bankruptcy was announced.
• Consequences of Thomas Cook on the EU directive.
- The VAT application needs to be reviewed; when does VAT become payable? It needs to be changed from the invoice issued to the payment received.
• Strong customer authentication update.
- A new security standard for remote card payments.
- The hospitality sector is still not ready for implementation.
- There is an attempt by OTAs to use this excuse to lock hotels into their own payment solutions.
- HOTREC has been requesting an 18-month period for a harmonized transition.
The EBA (The European Banking Authority) has informed HOTREC that the deadline is December 31, 2020.
- During this period, all merchants will be required to be compliant.
- During this period, any fraudulent transactions will already be the responsibility of the receiving party.
• TURYİD President Kaya Demirer gave a presentation on the social healing effect of gastronomy and gastro-diplomacy.
• The next HOTREC General Assembly will be in Berlin on April 23-24, 2020.
- Opening remarks by President of Croatian Hospitality, Velijko Ostojić; Nikola Dobroslavić, President of the Dubrovnik - Neretva Region and Frano Matušić, Secretary of State Ministry of Tourism.
- Last GA's minutes approved.
- Presentation by HOTREC President Jens Zimmer Christensen.
- Upcoming challenges are also potential opportunities.
- Targets on EU carbon emissions and sustainability.
- Reduction of food waste.
- Overcrowding.
- Hospitality provides 12 million jobs in the EU. It is the 3rd largest industry.
- Professional skills need to be transferable within EU countries.
- Report by Christian de Barrin on HOTREC activities.
- Changes in the HOTREC team announced.
- Serbia is joining HOTREC as an observer member.
- Comments on new EU Parliament and key MEPs.
- 2019 HOTREC finances by Adrian Cummins.
- 2019 budget €975k, 91% paid.
- Unpaid fees: TUROFED 2017 membership fees remain unpaid. Court case opened in Brussels for collection. Next hearing on Nov 7, 2019.
- New members joining as of Jan 1, 2020:
- HORES - Hotel and Restaurant Association of Serbia
- Hosteleria de Espania - Spain
- Bulgarian Hotel and Restaurant Association
- 2020 Budget
- 2020 fees will increase by 1.26% as per EU inflation.
- 2020 receipts: €985,220.
- 2020 expenses: €961,505.
- 2020 Budget was approved.
- The European Hospitality Foundation which was under the auspices of HOTREC has been abolished, relevant statutes have been amended accordingly.
- New Excom member elected, Laurent Duc, President of UMIH Hotellerie, France.
- EU Lobbying in the next 5 years by Andras Baneth, Managing Director of the European Office at Public affairs Council:
- How is the EU viewed by the member countries public?
- Highest in Poland 84%, lowest in France 51%, EU median 67%.
- Radical right is a fact and increased seats in the EU Parliament (EP).
- Total 751 members in the EP, if the U.K. leaves, this will reduce to 705.
- The change in EP after the U.K. may increase the influence of the populist forces.
- The composition and representation of the different political views influences also the weight of a country in the EP.
- Most important question for the next 5 year term is: will there be more integration between members or less?
- "4 P" focus areas in the next 5 years: people, process, politics and policy.
- And there are 5 trends to watch:
- Transparency and ethics
- EU is trying to define and find its identity, place and voice in the world.
- Climate change and digital issues will permeate all policy areas.
- Address the diversity and fragmentation of the EU institutions.
- The road to Brussels often goes through national capitals and member associations.
- How is the EU viewed by the member countries public?
- Discussion on the future of tourism for the next EU mandate 2019-2024 with MEP Istvan Ujhelyi.
- Generally bad news from Brussels.
- Istvan Ujhelyi wants to remain optimistic but there are serious challenges for tourism matters on EU level.
- Thomas Cook is a major problem.
- Potentially 2.4 million visitors to the Canary Islands will not be able to travel in Q4/19. Similar situation exists in Greece and many other destinations.
- The EU policy makers seem to be unaware of the huge economic risks of this situation.
- A lot of work needs to be done to reintroduce the importance of the tourism industry in Europe to the EP MEPs as it seems to have faded.
- The Future of Data by Mirko Lalli: How to make the most of digital applications?
- We are in the midst of a data tsunami.
- Every minute 5 million human experience data is shared worldwide.
- Travel is the first discretionary spend category in Europe while it is 4th in the U.S..
Millennial travel is all about experiences. - 49% of all bookings all happening online, but 89% of all traveling people and leisure expenditure are influenced by online data.
- 2018 marketing spend: Expedia $5.6 bn, booking.com $4.9 bn.
- The biggest influencer is online reviews, 38%.
- Only 13% of online business is booked directly through websites, for hotels the direct channel is around 30%, the rest through OTAs.
- Voice online search is exploding.
- Google maps is becoming the next important search engine fr bookings.
- The impact of Thomas Cook's bankruptcy on the Greek hotel sector, 2019-21 by Alexandros Vassilikos.
- 12% of all hotels in Greece were working with Thomas Cook.
- The total unpaid bills and impact on the Greek hotels only in 2019 is €190 million.
- The total impact on the tourism industry in Greece as a result, is €314 million.
- The total impact on Greek hotels for 2020 could be around €500 million.
- The total tourism impact in Greece could be potentially €929 million.
- The total impact on the Greek economy could be €2.5 billion if there would be no mitigation at all.
- Lower category rooms are particularly vulnerable.
- Greek Hotel Association expects that 60%-70% of the losses above will be offset with potential new business.
- The Belgian case of Thomas Cook by Marc Van Muylders.
- Travel guarantee fund of Belgium stepped in as soon as the insolvency was announced and ensured the safe return of all Belgian travelers and also refunding of those who could not travel after the insolvency was announced.
- Thomas Cook consequences on EU directive.
- VAT application needs to be reviewed, when does VAT become chargeable? It needs to be changed from invoice issued to payment received.
- Distribution Task Force:
- Parity clauses; German court case against booking.com was lost, the Higher Court overturned the previous decision by the Competition and Antitrust Authority.
- Situation in Italy, Austria and Belgium is clear, MFN clauses are banned.
- Switzerland is not yet clear.
- P2B regulation under process.
- Platform observatory is being established.
- Update on strong customer authentication.
- The new security standard for remote card payments.
- The hospitality sector is still not ready for implementation.
- There is an attempt by OTAs to lock hotels in their own payment solutions using this excuse.
- HOTREC is asking for 18 months to achieve a harmonized transition.
- EBA has informed HOTREC that the deadline is Dec 31, 2020
- During this time all merchants will have to be compliant.
- During this time any fraudulent transactions will already be the liability of the receiving party.
- Presentation by Caroline Drolet, VISA Europe Head of Card Payments and Michael Wilson, Policy Advisor, Legal Regulatory & Compliance.
- The SCA requirements implementation have been postponed from Sep 14, 2019 to Dec 31, 2020.
- Both parties will need to be in the EEA.
- If one leg is out of EEA, best efforts will be enough.
- Merchant initiated transactions such as no-show charges, authentication needs to be taken in advance at point or time of booking.
- Systems will have to be upgraded to facilitate payments with these standards.
- Shadow hospitality working group.
- Alternative accommodation is growing at double speed compared to traditional accommodations.
- This is the fastest way to grow business at less cost, bypassing regulation.
- EU regulations against Airbnb
- Restaurant & bar working group.
- Food waste.
- HOTREC is a member of the EU platform for food waste since 2016.
- Platform is working on recommendations for all stages of the food chain and public authorities.
- HOTREC wants to reduce or avoid legal obligations on the sector as much as possible.
- Food waste.
- Late night entertainment working group.
- Wine in moderation; alcohol and health; responsible service training available.
- Presentation by Kaya Demirer on the social healing effect of gastronomy and gastro-diplomacy.
- Next HOTREC GA will be in Berlin, Apr 23-24, 2020.
