Sunday, 5 July 2009

The All Inclusive Problem - The Caribbean Experience

Now this post might not seem, on the surface to have much to do with the restaurant industry but if you bear with me a little while I think I can pull it all together and get my point across without boring you too much.

Many years ago now, I used to travel to the Caribbean, and love it. We visited a few of the regular main tourist islands and I even went so far as to go back to Jamaica for a second visit, for my honeymoon, but that is a whole other story and not one for these pages. Anyways on our first visits to the Islands we usually stayed in nice enough hotels in very nice areas on beautiful islands, and when we wanted to eat, we went out for breakfast or supper, for lunch we would buy some fruit or whatever from the local stores, maybe a loaf of bread and enough fixings to make a few sandwiches, great, no problem. If we were thirsty we would get a beverage from any number of vendors or vending machines all around the area. If we wanted to tour around the island for a day trip it was something we would arrange and have a good day of it. The All Inclusive Destination was around already in the form of Club Med and I think that Sandals Resorts had a property or two already. Travel forward in time to the last trip I took to the island of Jamaica and a visit to my first all inclusive resort. The resort itself was quite nice and so on and the food was certainly adequate, if not overly impressive, it was of course served buffet style for three meals a day. Snacks were available most times also and the beverage service was probably more than adequate, at the time I would have wanted the bars open earlier and to stay open later. So, all in all just what you want in a lay back and do nothing holiday. But therein lies the problem as well. If you left the property and went shopping in town, you were spending money that you felt you already had in the form of the all inclusive. Food and beverages outside of your resort seemed to be something alien and just downright wrong, to have to spend money on these was just not right. In retrospect I am certain that we were not the only ones to feel this way and I’m sure that it is the same in every area that the all inclusive has set up shop in.

The local business person and the local restaurateur saw a steady decline in their business because the all inclusive was psychologically trapping their guest in the resort. A large vicious circle ensued, the local independent was losing business and had to raise their prices to continue to make a living, the tourist visiting felt spending more after purchasing an all inclusive vacation was not necessary and the prices were going up steadily. The all inclusive resorts were making their money on their business model just fine, and could afford to expand and advertise even more, they have become, in some areas almost the only way to visit those areas.

The one other problem with these resorts is that they are too big and too successful, they all copy one another since the big boys fine tuned the experience and the newer players emulated them, so one resort is very similar to the next, and other than the name of the village or town that you are nearby the palm trees are the same, the beach is sandy and the water is salty and a perfect temperature. But you see nothing new, you experience nothing new and you more than likely do nothing new. I haven’t been back in some time now, but I’m sure that the local independents are still hurting and the prices are still going up, inflation notwithstanding.

Now here is the correlation. The chain restaurants, franchises, and the big catering companies are killing off the small, local independents as surely as the all inclusive giants are killing off the local businesses in the tropics. The large chains have the money behind them to weather out the booms and the busts in the economy. They can keep the under performing store open with the profits from the flagship store and the marketing and advertising is national and usually a well thought out and successful campaign. They have the purchasing power to negotiate better deals with suppliers so that they can offer their menu items at lower prices and they can shave a couple of points off of their margins by making it up with volume. Some of these chains are getting big enough I’m sure that they even get preferred tenant pricing when they go into the new mall in your neighborhood. Their control systems are standardized throughout the chain so that the accountants can tally up the profits more easily, and the training systems can turn a high school student into a “fully trained” staff member in no time. But once again, same as the islands and the all inclusive resorts, you get a good meal, you are greeted and sat promptly. The meal is just fine, and there are no surprises. You do not get to experience anything new, you don’t get to try a new cuisine or something prepared in new and exciting manner because this does not fit their business model of success and profits. The chains make it all happen with volume and tried and trusted menu items. I guess that one way of looking at the whole thing is that the chains and franchise outlets are in the business of making money from selling food. They aren’t in the restaurant business as I would like to think of it. The same thing goes for my first observation, the all inclusive giants are in the business of making money from providing rooms and meals. They aren’t in the business of offering vacations.

So the next time you find yourself planning an evening out, think about this and try and give your local independent restaurant a try, support the locals and maybe they won’t all die off and make eating out a boring event.

Pros and cons of all-inclusive resorts

A frequent critique of all-inclusive resorts is that they do not help the local economy or that they damage the local environment. People who hold this view usually cite the fact that most resorts are located in relatively remote areas away from major local population centres, making it hard for the people staying there to see any local sights or patronize local business, especially since they have after all paid up-front for their food and drink at the resort but would have to pay separately for anything they eat or drink elsewhere. They also say that most resorts are owned and run by large multinational corporations, such as Club Med, Sandals, Beaches or SuperClubs Resorts (which is actually a collection of several resort chains including Hedonism Resorts and Breezes Resorts) thus diverting money away from local companies.

Proponents of all-inclusive resorts point to the fact that these resorts usually bring large numbers of visitors to the country, who must travel through local airports and towns to arrive at the resort. They also state that the resorts provide jobs in areas that are economically impoverished and away from the major centres.

Resort popularity can sometimes drive up property values to such a degree that the resort workforce cannot afford to live near their workplace, causing the creation of nearby bedroom communities. This phenomenon is especially prevalent near ski resorts in the American West, and resorts in otherwise impoverished nations. A classic example being Cayo Coco in Cuba where the hotels are placed on an island 27km from the mainland and the working population brought onto the islands each day from apartment blocks on the mainland by bus.

Hotel Amr Al Zaman Holiday Complaints

If you have travelled to or stayed at the above hotel/resort during April/May 2009, be advised that we have received holiday complaints from other holidaymakers. Those holidaymakers are now receiving Free Advice & Assistance from HolidayTravelWatch.

If you have a holiday complaint to make, and would like to receive assistance to deal with your travel problems, please contact HolidayTravelWatch as soon as possible.

Representations:

Please note we DO NOT represent that problems exist at this hotel, either before the said period, during the said period or following this period. If you have any concerns, then you should direct them to your tour operator, they should advise you further.

General Holiday Complaints Advices:

Illness Advices:

If your holiday complaint involves any holiday sickness, please ensure that you speak with your GP and obtain a stool sample as quickly as possible. If you experience difficulty in obtaining your test, then you should speak to your local Environmental Health Officer without delay.

If you are requested to provide access to your medical notes and records by the tour operator - DO NOT give your consent to such an action, unless you have received advices on this issue!

Dealing with a Travel Company:

If you are encouraged to correspond with the Tour Operators Solicitor, DO NOT DO SO unless you have received advice on this issue!

Do not accept any offer to settle your claim without first talking to us or to a specialist travel lawyer - do not bank any cheque or accept any voucher - you may compromise your right to be properly compensated.

What to do next:

If you have been affected by any holiday complaints, and you would like further assistance, then you should contact HolidayTravelWatch, or speak with a Solicitor, details of which can be obtained from The Law Society.

Warning Notice:

Please note if you have any limitation concerns or are subject to a pressing court order, you should seek urgent assistance from a Solicitor, you should not wait to speak with HolidayTravelWatch.

HolidayTravelWatch
26 June 2009

What is the Consumer Protection Law?

The Consumer Protection Law includes many articles that oblige traders to protect consumers, such as:
• Consumers are entitled to find on all products the data required under the Egyptian standards. Such data must be placed in a clear and legible manner.
• The consumer is entitled to receive, upon his request and without any additional charges, an invoice concerning the transaction or agreement related to the product, including in particular the date of the transaction or agreement, the price, specifications, nature, type, and quantity of the product.
• The supplier shall, upon discovering a defect in his product, announce stopping its production and warn consumers not to use it. Upon the consumer’s request, the supplier shall replace the product, repair its defect or accept the returning of the product and pay back its price at no additional cost.

To file a complaint online visit http://www.cpa.gov.eg/english/filling-complain.htm

Saturday, 4 July 2009

Il Mercato Sharm El Sheikh

Hires a new marketing / operation manager every quarter, and with every new hire they go through the same exercise of contacting advertising companies, hotels, tour operators and give them the same pitch that they will start marketing the mall and throwing events, hosting international artists within a month or two, non of this is true it never happened the only events hosted were Egyptian singers during Egyptian national holidays and it was free entry, so they got the crowd for the cameras but no clients for the shops...

The place is amazing and hosts the top brands in Egypt, Shop owners have been complaining about the owner Mr. Mosaad that he never lives up to his promises to market the mall as Sharm's top shopping destination.

Il Mercato is the most expensive commercial real estate in Sharm, but the owners strip their marketing department from any power to do their job properly - they promise that the reason for the hefty rental is that they deal with multinational advertising agencies to market the mall in the middle east, however no of these marketing true. The mall is a ghost town, shops are empty except for few of the international fast food chains

Toyota Sunny Lakes

Family run business where Dad and Son (Dr. Gamal Habib and Sameh Habib) purchase adverts in Sharm local media and never pay for it.
The never respect signed contracts, never answer their phone, and when you meet them each one says the other person will pay in few days
Not a very good sign for a car dealer, who will collect car payment but no after sales services...

Business in Sharm El Sheikh

Running your own business or thinking of establishing a new business in Sharm El Sheikh, then review our updated list of existing business in sharm where we rate busienss on their financial and service quality processes.

If you have any experience with businesses Sharm El Sheikh, Dahab or Nuweiba and would like to rate your experience and publish it, please get in contact with us