Festivities not festive for the Nice hotel industry

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This end of the year is an opportunity for an initial review, traditional wishes, and thanks in the world of local hospitality.

This year 2005 has seen a very slight improvement compared to 2004, especially in the last two quarters, with the beginning of the year being quite mediocre overall. It ends with a bittersweet New Year’s Eve with a notable absence of the traditional Italian clientele, who were probably informed about the door-to-door thefts that many Italians have recently fallen victim to in Nice.

Under the impetus of the Prefect of Alpes-Maritimes, the national Police and Gendarmerie took measures that were effective, but the Italian press had already reported the facts in many national dailies.

To this end, we asked Michel Tshann, President of the Côte hoteliers, what his feelings were about this past year and the years to come.

Interview Michel Tshann
President of the hoteliers’ association.

Nice Première: How did the holiday season go for the hoteliers of the Côte d’Azur?

Michel Tshann: They went well: our guests were satisfied, the weather was good, and the celebration was strong; however, we had fewer guests and the hotels were far from full, which is always disappointing and weighs on economic results and employment.

NP: In your opinion, why did the Italians shun the Côte this year?

MT: Many reasons: economic difficulties in Italy, strong competition from other destinations where labor is cheaper: Egypt, Tunisia, Czech Republic, Hungary, Croatia, etc.

But the two main reasons are:

– The poor image of Nice in terms of safety: the numerous door-to-door thefts have given a disastrous image widely relayed by the Italian media; despite the efforts of the Prefecture this image remained.
– The reduction in the means of promotion by the Nice tourism office: its subsidy was decreased and Italian tourism professionals (tour operators, coach operators, etc.) were not sufficiently canvassed.

We tried to find other markets for this New Year’s Eve, notably in the United Kingdom and Japan, but the events of November in France deterred these potential clients from coming to France.

NP: What are your wishes and hopes for this new year?

MT: First, that our clients are happy and safe; 2006 should have started well with the reduction of VAT on catering: if we had been able to lower the prices of New Year’s Eve celebrations by 10% we would probably have had more clients.

Beyond that, 2006 sees a significant return of congresses to Nice thanks to Acropolis and this is crucial especially for high-end hotels; hotels have been doing and continue to do a lot of renovations and this allows us to face the competition head-up

More concretely, a Riviera convention bureau would allow the Côte d’Azur to be united.

The many administrative divisions: municipality, agglomeration, department, region, etc. make little sense in terms of tourism; our clients know the Côte d’Azur, roughly the department, with neighborhoods called Antibes, Cannes, Menton, Nice. Therefore, promotion must be coordinated and without duplication, which unfortunately is not often the case.

Other long-term wishes: the LGV arriving in Nice, and the so-called long solution for the bypass of Nice.

NP: In your opinion, what progress needs to be made in our region regarding hotels and their services?

MT: There is always progress: our competitors are active, benefit from cheaper labor in terms of salaries and especially social charges.

The hotel industry is changing a lot at the moment especially with the departure of hoteliers in their sixties, replaced by younger people often from outside the department who bring new ideas.

However, hoteliers cannot do everything: the tourist perceives a destination, and this includes all services: taxis, restaurants, shops, etc.; it is necessary for tourist-oriented businesses to be open on Sundays and public holidays, and for major events on the coast to be coordinated and highlighted.

NP: Let’s return to the famous 5.5% VAT, do you think it will ever be in force, and why did the project fail at the end of last year?

MT: Officially because of German hostility, but our rulers were probably quite pleased to pin the blame on someone else!

These same rulers who claim to be great connoisseurs of diplomacy should have remembered this before promising this VAT reduction: we are in the 21st century, voters no longer let themselves be duped as in the past.

In any case, if this reduction is not effective, take-away catering should be raised to the same level as “normal” catering which creates more jobs and does not pollute the surroundings with packaging from take-away meals.

We will see on January 24, but given the state of France’s finances…

NP: Many tourists find the Côte d’Azur horribly expensive, what would you say to them?

MT: Yes and no: we are more expensive, and will always be than Turkey or Tunisia again due to social charges…and VAT!

However, we are much cheaper than London, Milan, Paris, or even Moscow!

NP: Your opinion on the tax applied to airline tickets?

MT: It’s a foolishness emptied of its meaning: why tax travel, why not SMS, disks, gasoline, etc…

It has been emptied of its meaning: 1 euro on domestic tickets: collecting the tax will cost more than its profit.

But especially, what will Africans see of this money? it will probably be squandered by various and varied intermediaries before it gets there.

In the faculties of the Republic, students are taught the principle of budgetary universality: our leaders must not have learned it or rather are looking for patches!

A very happy new year to you…and your internet users

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