Jim Murphy - PREM Group’s Managing Director
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This is another relevant article from IBEC . 

  • “What is it with the seemingly endless instability of oil prices?  Is the world consuming too much, or is it that out-of-control speculators are responsible for today’s unsustainably high prices?  In truth nobody knows for sure, but it is probably a bit of both.
  • Given that we are an island destination, our visitors can only get here by air or by ferry so the future well being of tourism is very dependent on there being adequate oil supply at reasonable prices, for both producer and consumer.
  • Consider this.  The Chief Executive of Northwest Airlines, Doug Steenland, appeared before a Congress Committee in Washington D.C. last week, and among other things he pointed out that, “worldwide daily demand for oil had only increased by 2% in the past year although the oil price had risen by 100%”.
  • Doug is strongly of the view that speculation in the commodity markets is a major cause of the rise in the price of oil.  He says the volume of speculative activity is excessive and that additional regulation is necessary because it has placed upward pressure on oil prices irrespective of market fundamentals.
  • On the other had, Tony Hayward, the Chief Executive of BP, said yesterday that the argument that speculators are to blame is a myth, adding that supply was not responding adequately to rising demand.
  • So where is all this oil coming from and who is using it?  The following are the top 10 world producers according to the Financial Times, with the number of barrels per day shown:
  • But here’s the more interesting thing, who are the top consumers, again barrels per day:

High oil prices have widespread economic impact across all sectors, but perhaps none more so than in aviation.  In March of this year the International Air Transport Association (IATA – they represent over 90% of the world’s airlines) were predicting an industry profit of $4.5 billion for this year, based on an average oil price of $86 a barrel.  “For every $ that the price of fuel increases our costs go up by $1.6 billion”, says IATA.

  • Fast-forward to June and IATA believe that with an oil price of $135 per barrel for the rest of the year, the potential loss for 2008 could reach $6.1 billion.
  • Over the past 60 years the aviation industry generated $11.5 trillion in revenue and just $32 billion in profits.  Average margin has been just 0.3%, and the industry carries $190 billion in debt.  Since 2001, airlines have achieved massive change, fuel efficiency improved 19% and non-fuel costs dropped 18%.  But of course the skyrocketing price of oil has eaten up those gains, and then some.
  • So, challenging times ahead would appear at this juncture to qualify for the understatement of the year award.  Nevertheless, aviation has achieved remarkable things in the past and will again.  Science and technology will find ways to progress, just as the industry went from the Wright brothers to the jet age in 50 years.
  • The industry intends to improve fuel efficiency by a further 25% by 2020, and they have an even bigger plan, to build and operate a commercial airliner that produces no net carbon emissions, within the next 50 years.
  • In the much shorter term the world needs to establish what really is driving the price of oil and deal with that.  Otherwise the prediction by the President of OPEC last Thursday that prices could reach $170 a barrel in the coming months could come to pass.  He says the reasons are a weak US dollar and pressure on Iran, and he also says “there is more than enough oil in the market to meet international demand”.
  • But on the other hand a spokesman for Gazprom, the Russian energy giant, said last week too that OPEC had no real influence on the global oil market anymore.  His cheery view is that competition for energy resources was growing all the time, and he predicts $250 a barrel next year.
  • And just when you thought you had all the bad news, today ABC News, citing a Pentagon source, says Israel is likely to attack Iran’s nuclear facilities this year.  That’s not likely to do much for price moderation, were it to happen.  Indeed it could make the predications by the men from OPEC and Gazprom look modest, for a time at least.
  • “Take away the excess speculators who are in the market purely for the ride, and oil prices could drop by half”.  That’s the view of Michael W. Masters, a hedge fund manager who’s been advising Congress this year.  “There are no lines at the gas pumps and there is plenty of food on the shelves”, said Masters.  If only it were that simple, but the sad reality for now is that no one knows for sure what’s the cause of the high prices.  Let’s hope they find out soon.”
     

July 1st 2008

   
   

Last Friday ,as the results came in, I was a little disappointed that Ireland rejected the Lisbon Treaty . But over the weekend as I listened to the various opinions I began to wonder whether the NO vote was such a bad thing after all . What has really struck struck me more than anything has been the total lack of planning by the powers of be for the possibility that this treaty would be defeated by the Irish electorate . Surely in a closely fought contest there was always the possibility that the No’s would win and and a plan should have been put in place for that eventuality .

So we now have a situation where an estimated three million Irish voters look likely to have plunged the European Union, a bloc of nearly 500 million people, into chaos by their rejection of the Lisbon Treaty. Is it our fault that we have expressed our democratic right and rejected this treaty . Regardless whether you were for or against this Treaty ,those people charged for bringing this to a public vote should have prepared for either one of the two outcomes . So when we see reports of the European Union being plunged into chaos ,we should not blame the Irish public but those people who did not consider this out come and who failed to have the plan B ready .

Ireland is the only country in Europe to hold a referendum on the treaty. That’s because in order to accept some of the changes in power from Dublin to Brussels, the Irish Constitution must be changed.

Of course, the treaty’s proponents rightly pointed out that few countries in Europe have benefited from the EU’s largesse more than than Ireland. More than three decades of subsidies from the EU, in part, helped transform Ireland from Europe’s sick man into its most prosperous country. Now Irish supporters of the treaty are rightly worried that their influence in Europe will be badly diminished.

So what’s next? Brian Cowen will have to go to next week’s meeting in Brussels embarrassed that his attempts to convince voters of the treaty’s merits have failed. The bigger impact is, of course, on the credibility and future of the EU itself. But going back to the drawing board will prove difficult as the Lisbon treaty was already the product of years of tortuous negotiations.

In the meantime PREM Group ,like a lot of Irish company’s ,will continue to grow our business throughout Europe .We will continue to work closely with our colleagues in the UK,France and Belgium and look forward to opening Hotels in Germany and the Netherlands in the near future . We will continue to do business while we let our politicians deal with the wishes of the people . Maybe next time they won’t take those wishes for granted .

PREM Group have just launched an online customer feedback tool on all our Days Hotel Ireland websites.I believe we are the first hotel chain to post real live guest reviews on our own website (I know other third party websites such as booking.com and tripadvisor.com are doing it, but the individual hotel chains aren’t). The process works as follows: 2-3 days after the guest has stayed, our system will send them an automated e-mail from the hotel, requesting feedback on various aspects of their stay. The feedback is then automatically sent to the General Manager for review. He can also contact the guest if any serious issue has arisen. The reviews are then responded to by the GM and posted live on the hotel website. Research shows that 61% of guests now rate customer reviews as their number one influential factor when booking a hotel.

The reviews will be rolling, and will be continually updated as new comments are added.

The Days Hotel Dublin Airport is the first hotel to go live today . We plan to roll this facility out across our portfolio over the coming months .You can see how the reviews are going in Dublin Airport by logging on to www.dayshotelsireland.com

 

 

PREM Group previewed the new room for the Bedford Hotel Liege to a invited group of guests this week . The new room was very well received and we are now working on a programme to refurbish all 148 rooms by the end of 2008 . The hotel will be re-branded the Ramada Plaza Hotel Liege and will confirm its status as the best 4 star hotel in the city. The total investment in this hotel will be in excess of €1.5 million and will ensure PREM Groups commitment to Liege for years to come .

High Resolution Press Images:

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We are not the only company to have seen the attractiveness of investing in Belgium with 175 foreign investment deals happening in 2007 . 

Belgium remains one of the most attractive countries in Europe for Foreign investment .

The political crisis seems to have had little impact on foreign investment in Belgium. Ernst & Young registered 175 foreign investment projects last year, earning Belgium fifth position amongst the most attractive investment destinations in Europe, with only the UK, France, Germany and Spain currently performing better. However, Belgium is ahead of The Netherlands, Ireland and Denmark. The Americans in particular are investing in Belgium (49 investment projects), followed by the French (21), the British (16), the Dutch (14) and the Germans (13).

De Standaard /Vlaams-Brabant/Brussel ; Thursday 05 June 2008 ; p.25

Back in January one of my first postings on this BLOG was ‘Belgium-Europe’s best kept secret’  (see ARCHIVE at the bottom of this page to read that posting).In that BLOG I wrote about how wonderful Belgium was to visit as a tourist but how poorly the country sold itself internationally . This opinion has been borne out by  recent Eurostat figures .The tourism index is calculated from the sum of the number of nights of stay, both from national and international tourists, divided by the number of residents. This results in an index for the whole of Europe of 4.7. Belgium hardly makes 2.8. All our surrounding countries do better and fluctuate around the European average. The fact that the index is lower with a high density of the population works against Belgium. The French and the British for instance much more often travel for a few days in their own country than Belgians do. Perhaps the rather unique Belgian phenomenon of a second home at the coast or the Ardenne also plays a role, because those nights are not counted by Eurostat. In a reaction Tourism Flanders says that it reported better figures year after year, so that the Flemish index has risen to a more positive 3.17.

This is a sneak preview of our new 4 star bedroom that will be rolled out in the Carlton Hotel Antwerp over the next few months .A variation of this room will appear in the new Ramada Plaza Liege (formerly Bedford Hotel Liege) towards the end of this year and also in our new 4 star hotel in Brussels ,details of which will be announced shortly. The room will offer a new luxury bed with pillow top mattress, ipod docking station,flat screen TV with Internet access,wi-fi,workstation desks,safes with power source for recharging laptops,and much much more . A lot of thought and experience has gone into this room ,we love it , what do you think ? Feedback is welcome and if you happen to be in Antwerp ask for Christel and she will be happy to show it to you . In a few weeks we will be inviting our customers to try it out and give us feedback .

High Resolution Press Images:

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Back in 2002 when Ireland was preparing for the introduction of the smoking ban I was President of the Irish Hotels Federation .My presidency was dominated by this issue and negotiations with the Irish Government . In hindsight the right decision was made and the smoking ban has been a resounding success in Ireland. I have been watching the situation in Belgium with interest . A partial smoking ban was introduced in Belgium in 2007 and I believe that the Belgium Government made a big mistake by not introducing a total ban on smoking instead opting for a compromise version . Therefore you had a situation where smoking is allowed in some bars,for example ,and not in others . I read with interest therefore an article from De Nieuwe Gazet newspaper yesterday that the Government are now considering introducing a total ban on smoking in the hotel and restaurant industry .I support this move as the current legislation is confusing for both the industry and customers .My only concern is that this change is not due to come into effect until January 2010 . Why wait so long ,surely if it is the right thing  to do ,this should be done a lot sooner .

 As a member of the Irish Hotels Federation I want to support there call for a yes vote in the up coming referendum on the Lisbon treaty . The following is the press release issued by the IHF . The Irish Hotels Federation (IHF) is a member of the Business Alliance for Europe which today launched its campaign for a yes vote on the Lisbon Reform Treaty. In supporting the initiative, the IHF calls on its 1,000 member hotels and guesthouses and their 60,000 employees to vote yes in the upcoming referendum.  John Power, Chief Executive, IHF, states, “It is vital that Ireland remains fully engaged with the EU given the tremendous opportunities that a strong and efficient Europe offers Irish businesses. In the last 10 years Ireland has doubled its exports to other EU states (from e44bn to e87bn) and in the same period the revenue from mainland European tourist who visited Ireland has almost trebled to e1.6bn.”              “Ireland’s active and positive involvement in the development of the EU continues to be a major attractor of foreign direct investment. It is important that Ireland’s positive support of the development of the EU continues. Anything other than a decisive ‘yes’ in the referendum would undermine the international perception of Ireland as a desirable place to visit and in which to do business.”  The IHF believes the strengthened and reformed institutions arising from the Treaty will allow the EU to achieve greater levels of economic prosperity and to face more effectively the challenges of development and enlargement. By playing a positive role in shaping Europe’s future, Ireland protects its status as a desirable location for both existing and future foreign investment by businesses seeking a foothold in the European market.  The Lisbon Reform Treaty includes a commitment to cooperate with emerging economies which in future will expand the possibilities for future trade and exports including tourism opportunities. The benefits arising from the Treaty will also generate additional opportunities for Irish business through greater realisation of the internal market.  Ireland has established a tremendous level of goodwill within Europe and has long been regarded as a welcoming country for visitors and overseas workers. The foundation of the Irish tourist brand is our people and our open, friendly and welcoming attitude. From a hospitality and tourism perspective, a resounding ‘yes’ to the Lisbon Treaty will substantiate this reputation in the eyes of the other 26 member states,” adds Mr Power.  

Children’s Initiative Reinforces Healthy Eating Habits

 

I congratulate the new President of the Irish Hotels Federation for the “Food for Kids” initiative that he has just launched . As the father of two children I am only too aware of the very limited and unhealthy food offered to children in our hotels and restaurants . The standard choice of chicken nuggets ,sausages,fish fingers ,all deep fried and all served with chips ,must become a thing of the past . The healthy menu suggestions given to members by the IHF  would appeal to my children and are all interesting and attractive options .

The initiative, which promotes more choice for parents, is the first nationally coordinated campaign of its kind in Europe. The IHF will provide chefs with healthy preparation guidelines along with a range of nutritious ‘Family Friendly Menus’ seasonally augmented in-line with the availability of fresh produce.

In partnership with independent dietitian Margot Brennan, the initiative will see the roll-out of a comprehensive range of menu options across participating hotels and guesthouses from May 2008 onwards. With an estimated 300,000 children now overweight or obese in Ireland1, the ‘Family Friendly Menus’ will offer parents fun, interesting and healthy meals that reinforce healthy eating habits with an optimum balance of proteins, carbohydrates and nutrients.

In 2008, Irish hotels and guesthouses will prepare over five million meals for children, providing a significant opportunity to promote healthy eating among their younger guests. Coordinated and supported by the IHF, participating premises will help to address the pressing health issue of childhood obesity by delivering nutritious meals that are tasty, attractive and fun for children.

The healthy eating guidelines will promote:

  • Eliminating salt in preparation and cooking
  • Offering alternatives to chips
  • Using ‘real potatoes’ to make homemade chunky chips with no added salt
  • Using vegetables & fruit more imaginatively
  • Increasing the use of whole-wheat and oats.
  • Providing less fried foods
  • Increasing the fibre content in children’s food
  • Ensuring a child-friendly presentation of food
  • Providing fish, chicken and meat that are nutritious and not processed.

The IHF stated that it hoped that this initiative will play a role in addressing alarming national statistics which include:

§         11.6% of Irish girls aged 5–12 years are overweight while 13% are obese

§         10.5% of Irish boys aged 5–12 years are overweight while 9.2% are obese

§         40% of Irish children exceed the recommended maximum of energy intake from fat.

§         61% of children did not consume enough fibre.

The IHF stated that hotels and guesthouses participating in the initiative will display a symbol so that parents can also make an informed selection on the property they choose to have family meals in. The IHF represents over 1,000 hotels and guesthouses throughout the country. Its members employ 60,000 staff.

I will be encouraging all our hotels to look at improving the children’s menu’s that we offer to include some of the suggestions outlined in this initiative .

For more information visit www.ihf.ie