The Olympics and the Hospitality Sector

This summer brings some important historical events with the Queen’s Diamond Jubilee (4-5th June), the Farnborough International Air show (9-15th July) and of course the much anticipated Olympics (27July- 12th August) and Paralympics Games (29th August- 9th September).

This will undoubtedly have a huge effect on the hospitality, leisure and retail industries in Britain.

Debates and discussions with regard to the hospitality sector have been ongoing since the UK won the bid to host the games in 2005, a monumental achievement as we last hosted the Olympics in 1908 and 1948. It is believed that the influx of people during this memorable summer will have a largely positive effect on London with optimism in the Hospitality Sector up to 53.5% according to HotStats Hotel confidence Monitor.

The positives include the chance to revamp Britain’s global reputation as a fast-food eating, loutish and unwelcoming nation. The aim will be to challenge, change and improve these views.

In terms of the hospitality sector, notably hotels in and around London, there is a concern in keeping the price right during and after the Olympic period. The key is to look at past international events, their successes and pitfalls and retrospectively learn from them. Booking hotel rooms, overbooking and attracting clients who will stay on post Olympics if possible are all major issues facing the hotel industry.

The London 2012 organising committee (LOCOG) ensures fair pricing by hotels, taking the average rate of the past three years and adjusting these prices according to inflation. However not all hotels have signed up to this scheme. By not signing up hotels are leaving themselves more open and independent to control their room bookings. This highlights one of the pitfalls of LOCOG in that hotels do not necessarily know where the business is coming from, the guest list and whether people will continue to stay on after the Olympics.

Very recently LOCOG released 120,000 of the 600,000 rooms it had reserved for the Olympics, the explanation for this is simply these rooms are being returned because they will not be needed.

LOCOG claim they are merely returning any surplus rooms for resale however there is concern that the rise in hotel prices would deter people from the capital, such as regular tourists that would visit the UK. Despite this hoteliers are remaining positive.

Overall the Olympics are undeniably a major event in the exposure it brings, promoting and creating improvements to the city. Approximately 11 million visitors are expected to descend on London this summer and there are new hotels opening in London specifically built for the Olympics, such as Holiday Inn, Stratford and Staybridge Suites, Stratford. Travelodge are also scheduled to open 11 more properties across the capital this year.

Tweet

Keen on Green

At MSE we are keen to be as environmentally friendly and eco conscious as possible. We recycle and have used minimal paper to reduce waste to ensure we maintain a paper free environment. We reduce energy costs and carbon footprint in every way we can. The hospitality industry across the board is demonstrating concern for the environment and working towards a better future for all. Recently the Hilton Heathrow Hotel has installed a waste2water digester which is an innovative system that turns wasted food into grey water that can then be recycled. This is a much needed change in light of recent statistics such as two thirds of people leave food on their plate because they are full and the fact that on average every person in the UK throws away their own body weight in rubbish every seven weeks.

The Hilton Hotel at London Heathrow airport will save “in excess of £30,000 per annum in waste management costs” due to this new innovative system. This is very significant move for a large multi national  hotel company and is cost effective, as disposal of waste is becoming more expensive: “food waste collection and disposal costs are increasing at an alarming 20 per cent per year”. The aim is to reduce this and to become  landfill free. Landfills are unsustainable and an inefficient way of disposing of waste and possibly one of the most environmentally damaging things we do.

There are many websites that offer practical and free advice for businesses and the hospitality sector on getting rid of waste efficiently, recycling and reducing the amount of waste they produce, including-

http://www.wrap.org.uk/hospitality/

http://www.nisp.org.uk/

http://www.zerowastescotland.org.uk/

It is certainly worth implementing some of the suggestions found here and investing in systems such as waste2water as the savings in the long term are major, not just in terms of money but also the environment.

The Hilton Hotel at London Heathrow airport is also planning to install light sensors and LED lights to save on energy costs and reduce their carbon footprint; they are setting a trend that hopefully many will follow.

Tweet

Government’s £4m campaign to encourage ‘staycations’ a flop?

It seems that the Government’s attempt to encourage UK holiday makers to stay at home and holiday in the UK has not had the desired effect according to a recent poll by Holiday Extras. It suggested that 53% of those going on holiday prioritise a vacation abroad rather than one at home.

The campaign is focussed on the positive impact of staycations, and encourages holiday makers this year to take advantage of what the UK has to offer. This will play a part in boosting the UK’s tourism industry and hopefully have a positive effect on the economy. 

Following the global economic crisis whilst support is required in all economies including the UK’s, staycations yield positive results in terms of their effect on tourism, hospitality and the UK economy.

This campaign caused slight controversy as it discouraged holidaying abroad and for resorts that rely on tourism for their economy this could have detrimental effects. However it is the current economic situation that has caused this increased trend in holidaying at home and people wanting more value for their money. Simply the campaign suggests that adventure, activities and relaxing breaks can be found in the UK and that in fact “Holidays at home are GREAT”.

With major historic events as the Olympics and the Queens Diamond Jubilee happening very soon hopefully we don’t need to worry too much about drumming up popularity for staying in the UK!

Tweet

Relocation, Relocation, Relocation: Moving Abroad for Work

In the last few years there has been an unprecedented rise in professionals relocating to different continents, despite the international economic crisis.

So, why is this big move such a good idea?

With the exception of the obvious positives of working abroad such as being in a new and exciting city, improving your standard of living and, of course, the better weather there are significant advantages to working abroad.

Money is certainly an incentive; "nearly half of employees around the world would think about moving abroad for a pay rise". But the reasons to relocate go beyond just the financial aspects.
Undeniably the export and import of high calibre individuals has a positive effect on a country. Hong Kong is a particularly interesting case. A recent report by The Daily Telegraph has shown that due to its ageing population and low birth rate Hong Kong is in desperate need of workers of a wide range of skills and calibre: "The Government of Hong Kong is speeding up plans to lure skilled foreign workers as it predicts a massive labour shortage".This refers to a huge range of jobs, not just executive positions however it is still no less important to note. Other countries seeking skilled workers from abroad are Brazil, Mexico, Turkey, India and Russia. Although in many cases this could apply mostly to construction and engineering specialists it does play a significant part in the development of a country and its economy. In addition it supports other industries such as leisure, hospitality and tourism necessitating the need to import experienced executives in these sectors.
Employees with international experience is of value to potential employers, it provides a distinctive edge and can open up other possibilities and opportunities and improve an individual’s reputation and employability.

Despite the obvious pros it is not a decision to be taken lightly. It is certainly something you need be sure of, get support from family and get the family involved as it is likely they will be moving too. Seek practical help and importantly have a clear understanding of what you are moving to, not just the new job but also the language, cost of living, culture and laws of the new country. And of course it does not have to be permanent, as Colin Smith, the general counsel in Hong Kong for hedge fund managers Orchard Capital Partners Limited commented; "I often wonder why people don't take the opportunity to move abroad more often - if you don't like it you can always go back" .
The BBC news article gives tips on up heaving your life and how to make the process as smooth and stress-free as possible.

Tweet

Counter Offers

In Executive Search we see shocked companies making counter offers all the time. Counter Offers are to be expected, especially at Executive Level. No company wishes to lose their top players. Almost half of all employees recieve a counter offer when they hand in their resignation and as such throughout the interview process we always ask our candidates how they would react to a counter offer, as it is usually the case that a company will try to keep them, at least as an interim step. However, in our experience acceptance of a counter offer is never a good idea.

You will feel flattered or pressured (or both!) by your company pulling out all the stops to keep you. These are colleagues you will have known potentially for many years, some of them will be your friends, you will feel emotionally invested in accepting their counter offer or you will feel guilty if you do not. Remember why the new position appealed to you, and the opportunity you might be missing by taking a counter offer. When you accept a job offer after a lengthy interview process you go through the pyschological motions of leaving your current role. You will already have weighed up the pros and cons of leaving your current company and your resignation is the culmination of that decision.

The Counter Offer is usually a reactive step which sadly doesn't work. An increased salary or new title is usually your next promotion and pay rise early, and if you were worth this to your company they would have paid you this much and raised your profile without you having to quit first. Despite treating you very well in the immediate future your current company will consider you a risk and in our experience they are usually making contingency plans. It is easier and cheaper to keep you for more money for now. In 4 out of 5 cases, counter offered employees still leave within 12 months. It buys the company time ie: longer than your notice period to find a replacement. The company ultimately will view you as an untrustworthy employee. Your commitment will be in question and any company cutbacks are likely to begin with you. You will have to prove yourself again, as if you were a new employee.

If you decide to take the counter offer, you must remember that your resignation will not be forgotten. If you decide against the counter offer aim to leave on good terms and thank the company for the opportunities that they have offered you whilst in their employment. Tweet

Celebrating the Diamond Jubilee

February 6 marks the 60th anniversary of the Queen’s accession to the throne. We are certain that everyone is as excited about the Queens Jubilee as we are, and we think that there is plenty to be excited about! This is MSE's round up of the events surrounding the Jubilee, and our favourite? Not everything has even been announced yet!

To get you in the mood to celebrate the 60th anniversary of Elizabeth II on the throne, thats nearly longer than Queen Victoria, the previous longest serving monarch and (Elizabeths Great Grandma!) you might want to read 60 facts you never knew about our queen!

The Governmenthas announed an extra bank holiday for the nationwide celebration, planned for the first weekend in June to mark the Jubilee. Lord Mandelson said it would be a "truly historic occasion" which would allow the British people to show their "pride and affection" for The Queen.

The borough of Greenwich is set to recieve royal status. The honour recognises Greenwich's global significance as the home of the Prime Meridian, Greenwich Mean Time and a UNESCO World Heritage Site. There are at present just three Royal Boroughs: Kensington and Chelsea, Kingston, and Windsor and Maidenhead. All reflecting longstanding Royal associations.

Spice girls reforming? During an interview on the Australian TV show "Sunrise," Mel B dropped a major hint that the '90s girl group is reuniting for Queen Elizabeth II's Diamond Jubilee celebration.

The Duchess of Cornwall has challenged schoolchildren to come up with the modern equivalent of Coronation Chicken for the queen. Representatives from the top four winning schools will be invited to Buckingham Palace in June to see their recipes turned into canapes by royal chef Mark Flanagan.

Planting of 1 million trees across the UK by the Jubilee Woods project. The Woodland Trust – the UK’s leading woodland conservation charity – has set itself the ambitious task of planting the million trees to celebrate the Queen’s accession to the throne as part of a year of tree planting that will see six million planted across the UK in the trust’s Jubilee Woods project. Tweet

London’s Burning: International Reaction to the August Riot and its Potential Impact to Tourism

Whilst the dust finally settles on areas affected by the recent riots, the country still takes stock on what was one of the greatest civil disturbances in many years. The political fallout may be taking centre stage at the moment; however, it is the likely that the economic effects will have a far more tangible effect on people’s lives, not just in the short term, but in the long term too. The long term ramifications of the riots on Britain’s international image will undoubtedly have a great impact on Britain’s tourist industry, especially those centred in London which is of particular importance due to the 2012 Olympics. In times of economic hardship it is most likely that the recent riots will make the situation worse for many businesses that are directly and indirectly reliant on foreign tourists and investors. As pointed out in a previous blog post on Chinese tourism, foreign tourists from a wide variety of destinations are increasingly important to the British tourist industry, therefore what the riots did to London’s intentional reputation is a vital matter to understand.

Understanding, how the riots were digested abroad will allow us to gain a glimpse of what tourists now think about Britain’s capital city. One of the most striking things about the riots was the great wealth of images that it produced, from those of burning cars and shops to masked looters, and police inactivity in the face of wanton violence. In our modern media age we cannot underestimate the power of these images had on the global tourist community. London’s image as a safe, modern capital has been tarnished by the images of gangs looting and mugging at will, especially the terrible scenes of Asyraf Haziq being robbed by people supposedly offering him help. These scenes will have undoubtedly created a negative image of London worldwide, but especially in South-East Asia, which is an increasingly important economic region and therefore a future tourist generator.

Furthermore, if the images of the riots didn’t do enough harm the reaction to them in the world press and by many governments have cast further doubt over London’s security. The Russian tabloid Komsomolskaya Pravda painted a picture of London as boiling cauldron of seething ethnic tension, whilst the Brazilian television network Globo and the Chinese newspaper Renmin Ribao questioned London’s ability to deal with security during the Olympics. The USA, Austria, France, Germany, Malaysia and others all urged their citizens to be cautious in London and other affected areas, adding to Der Speigel’s comment that London looked more like Mogadishu than the modern financial centre people are so accustomed to.

Like the healing process, a true assessment of the economic impact of the UK riots on London’s hospitality and retail sectors will take a long time. Savills, the international real-estate advisor has said that the riots will not have an effect at all on property prices, which as so reliant on foreign money. However, any judgement is premature at the present stage, currently with the riots over are tourists and investors willing to risk missing out on some of the opportunities London has to offer. Nevertheless, London has deep wounds to heal and it almost certainly could not take another bout of bad publicity. With a host of European and world cities vying for the same money from the international elite, it has yet to be seen whether London will feel further effects from the riots.
Tweet