Stronger together18 June 2020
In the midst of the Covid-19 crisis, the global hospitality industry has been one of the hardest hit by the pandemic. Ezio A Indiani shares his advice and message of positivity for the industry in these challenging times.
This is a painful time for the global hospitality industry and, of course, for our members in EHMA, who over the past few weeks and months have been forced to stop performing the jobs that they love so much, and make incredibly difficult, sometimes painful, decisions. Here in Milan, we were among the first in Europe to witness, first-hand, just how challenging and distressing the events of Covid-19 could soon become for the entire continent, but, in truth, nobody could have foreseen an event of this magnitude causing the damage it has done to the European and global economy.
In a letter to the president of the European Parliament, David Maria Sassoli, written on 11 May 2020, I articulated an irrepressible “cry of pain” from EHMA. We are the largest and most relevant European association of luxury hotel general managers, and work in a sector that has been brought to its knees by the present disruptive crisis. Tourism generates more than 13% of GDP (direct and indirect), 6% of employment and 30% of external trade in the EU. Hotels have mostly been closed for months and it is doubtful when they’ll reopen.
An even greater impact
The impact of the outbreak is huge, and the scale is not yet predictable, with potential worstcase scenarios yet to come on revenue generated, supply chains and social. Thousands of management companies face insolvency or count their days to survive; and millions of workers have lost their jobs or are on temporary unemployment or furlough. Specifically, what with the hospitality industry a labour-intensive one that involves a large number of sectors in the economy – from food to construction – with guests spending their money on extremely diverse goods and services, the impact is even greater.
We have appealed directly to the European Parliament in order for the European governments and institutions to consider the tourism and hotel industry as an absolute priority, and to take aggressive and coordinated policy actions at local, national and international levels in order to minimise job losses, and business closures in the immediate and long term. We have requested financial and taxation support in order to protect employment in all of its forms, including seasonal and temporary associates, and prevent irreparable damage, thus providing the possibility to gradually reopen hotels when the pandemic emergency is finally under control. It will be a very slow recovery and the hospitality industry urgently needs available assets, compensation of the reduction of revenues, elimination of additional loan costs and their renegotiation terms, rental costs waived and their payments postponed, relief of taxes and their payments postponed, and funds for the associates psychological support and training. Moreover, the industry needs a relevant allocation of funds for the promotion of tourism and travel to support unique countries and their beauties.
A message of positivity
Never before in its 46 years of history, since its establishment in Rome in 1974, has EHMA felt the need to appeal for institutional support. The association currently has 421 members in 27 European countries, corresponding to a market share of approximately 10% of European premium travel. We are here to collaborate on finding solutions and strategies to relieve our beloved hotels, and relaunch the hospitality industry across Europe.
I have been in regular contact with our national delegates to encourage this process, and lockdown has seen a huge amount of collaboration, conversation and constructive engagement among members, both internally and externally, across a number of different platforms. This must continue as we work together to share best practices, and protect and promote an industry we all hold so dear.
My message to all members is that we must remain positive and constructive, even in this most challenging of times. There are always lessons that we can learn together and it is important we do not panic – reopening will come and the hotel industry will return. In the meantime, we have a huge amount of work to do and a very strong, important message to deliver. Stay in contact with your people and stay connected to your guests. This might not always be easy, but we will be back in business. As hoteliers, associates, and human beings, I truly hope we will be stronger for the experience.
Ezio A Indiani
An EHMA member since 1996, Ezio A Indiani has built a prestigious international career across five-star luxury hotels in the UK, Italy, the Dominican Republic and Switzerland. General manager of the Dorchester Collection’s Principe di Savoia in Milan, since 2005, he has previously managed some of the world’s most iconic hotels, such as the Hotel Eden in Rome, the Hotel des Bergues in Geneva and Villa d’Este in Cernobbio.