NEWH - April 2006 - (Page 10)

insights from ALIS 2006 industry experts speak with NEWH magazine We were able to catch up with three key leaders in the hospitality industry at the ALIS conference held each year in January in Los Angeles – here is what they had to say: Joseph A. McInerney, CHA President & CEO American Hotel & Lodging Association NEWH: What will be the effect of the growing middle class in Asia and India to the hospitality industry? McInerney: This is the Asia-Pacific Century. China will become the number one outbound tourist market in the world with the potential for anywhere between 22 and 26 million travelers. There are not enough airplanes to handle all the people. The most desirable destinations are the convenient ones and those that are English speaking, such as Australia, New Zealand, the U.S. and India is the same thing; they are both developing a middle income demographic. Between the two, you have the ability to travel and buy first class goods and services equal to the entire population of the U.S. Once it becomes easier for Chinese tourists to come to the U.S., we have to be prepared for them by doing the things that service their needs, such as providing 10 the right menus, having people on staff that can speak the language. NEWH: Is the lodging industry too far ahead of the baby boomer drive for retirement products or too far behind? McInerney: We are right on track. The most sought after product is second homes and they don’t want them downsized. Not as formal, but definitely living big, especially in their desire for entertainment space. Any lodging development should have a residential and retail component, whether it’s in an urban or suburban location. You need the residential component. NEWH: How is the hospitality industry preparing for the threats of terrorism or the avian flu? McInerney: The AH&LA works closely with the Department of Homeland Security on the development of risk management initiatives through its involvement in the Real Estate Roundtable. Homeland security is of number one importance to this country and to this industry. With travel and tourism is the nation’s leading services export, $1.3 billion per day, we don’t want to see another incident in this country. AH&LA is also working with the Centers for Disease Control, the Health and Human Services Department and the World Health Organization to develop programs to keep the industry prepared and educated regarding the avian flu. It might come this year; it might come next year; or hopefully, it might never come. As we get information, we are disseminating it on our website to keep our members ahead of it and educated. NEWH: What will be the effect of increasingly rising construction costs on lodging’s growth? McInerney: There are more projects in the pipeline today than since 2001 when development dried up completely. But this is not a construction driven recovery. It is a controlled, gradual increase driven by product. There is not going to be overbuilding just because the industry and economy are on the upswing. Investors are looking for places to put their money. It’s the ideal time to give them a new concept or take the opportunity to take a brand internationally with a new flag. Whether it’s a Hampton, or Hilton Garden Suites, Homewood or Embassy Suites, it’s a wide open opportunity to take other products around the world. For 2006, it’s not a bumpy ride. It’s a controlled, gradual move forward. Let’s take the scenic route. NEWH: What do you see in your crystal ball? McInerney: I’m looking at what the next generation is looking for – the

Table of Contents for the Digital Edition of NEWH - April 2006

NEWH - April 2006
Letter From the President
Upfront
Contents
Hospitality News
Insights From ALIS 2006
Giving Back to Move Ahead
Lead by Example and Touch
Developments of the Future Will Focus on the Emotional Connection
NEWH Sessions at HD Expo
NEWH/Los Angeles Founding Chapter 2005 Gala Fundraiser
Innovative Sales Event Mirrors Innovative Market Trends
Coming Events
IH/M&RS Gold Key Awards Honor Leaders in Hospitality Design
All That Glitters … Is You!
Contributors

NEWH - April 2006