Opening ceremony of the 47^th congress of IH&RA in Belgrade, January 18, 2010

Ladies and gentlemen, distinguished guests, good morning!

I’m glad and honored to open this morning the 47th IH&RA congress in Belgrade, Serbia and I want to thank mr Mladjan Dinkic minister of economy and development, dr Goran Petkovic, state secretary and his royal highness crown prince Aleksander II of their presence and support to our congress.

I would like to talk to talk to you about two subjects the first one is how to face this economical crisis and the effect of the climate change on the hospitality industry. Well, dear friends an you remember in our history any year without any problems....I don’t, I have been in this business over 30 years, presiding 3 international hotels companies and I do remember that we did face always problems.

This crisis is not different from any other crisis….Economical crisis, H1N1, Mad cow disease, tsunami, all these natural disasters added to terrorism acts and vandalism and then our public sectors considering us the milky cows for their efficiency, charging higher VAT and taxes….enough is enough.

Stop crying and moaning and lets go back together to work. Leave the moaning to the pubic sector, not to us.

My friends please remember that

We are the leaders in our industry.

We are the leaders in investment and taking risks.

We are the leaders in keeping hiring personnel.

We are the leaders in reducing the poverty in the world.

We are the leaders in promoting each one of us the economical situation in his country.

We are the leaders in fighting the effect of the climate change even we don’t represent more than 2,5 % of the total emission of CO2.

Let’s back to work, let’s try by ourselves to find some solutions to reduce the impact of his crisis. Let’s leave to the public sectors the advantage to be a bureaucratic system just charging higher taxes and VAT. They love to compete who is going to give us the higher VAT. One of the country in the Balkans charge as much as 26 % of VAT…can you believethis.

I would like to thanks and salute president Sarkozy of France who reduce VAT from 19,6 % to 5,5 %. This is an act of determination and courage.

How we can work together.

Well first let’s start to be cool and relax to find some solutions.

We need to define wisely our objective which is how to protect out bottom line and expand and compensate the missing revenue.

Remember that always people need to travel, people will continue to travel, tourism will not end and business traveler will stop pouring at our hotels. The difference only that the way of travelers did change as instead of staying in 5 stars hotel they will go to 4 stars hotel instead of staying 2 weeks they will stay 10 days or one week, instead of spending money in various outlets of the hotel they will spend it outside etc….

As I am the president of your association IH&RA, I do advise strongly the followings:

1. Don’t touch your room rate. Your room rate is the base for your P&L statement, you did base all your projection and economical study on your room rate, you got a loan from your bank using your feasibility study and you room rate. This rate should not change, the best way to reduce it is start by giving some promotions as pay for 3 days and got one night free, pay for 5 nights and got 2 free, this is simple figure, then start by giving some free small freebees as a free continental breakfast in the morning, free towels for beach and pools, free internet access and this should be always free. I find ridiculous today that the communication is not free. It should be free to all; communications should be accessed freely to everyone in the world.

2. Increase your sales and marketing team and retain your best employees & top employees.

3. Emeraude hotels status and sustainable development is in the rise. This year the world has a very severe winter. This is the starting of the effect of changes on our climate. It’s time to change; now we should act together toward a green economy. Please don’t ignore this fact and don’t blame others. We have to act individually and collectively together we can make difference.

4. IH&RA has developed a program for you to certify you as a hotel respecting the various criteria of sustainable development. Take profit of this feature, the consumers is becoming very dedicated and in the next 5 years any hotel who is not certified will have his revenue reduced.

5. Diversify your clientele by nationalities and by type of business.

6. Compensate your high rate by giving some freebees as breakfast, free internet, some cash bonus to spend inside hotel.

7. Look at your customer background and diversify as well as your competitors where they do stand.

8. Take a serious look and the new trends at our hospitality industry as the demand of our guests will increase in the next years with high competition.

Last month over 30.000 people met in Copenhagen to try to find a solution. All newspaper called the meeting a disaster as no result did came from it. I called it a relative success as it did raise the awareness worldwide during one month. One of the issue that develop in Davos declaration in 2007 was awarness and to this, Copenhagen was a success.

Ladies and gentlemen I don’t want to be long today, IH&RA created in Koblenz in 1860. Since 140 years IH&RA is helping over 200.000 hotels and 6 millions restaurants worldwide. I can not guess what you needs are. Please don’t hesitate to contact me or any of my assistants if we can help you to achieve your goals. Please remember always that we are the leaders of our industry worldwide.

Don’t stay alone together we can make difference, join IH&RA and explore the world of hospitality.

Welcome to the 47^th IH&RA congress

Viva IH&RA, viva Serbia, viva Balkans

Thank you