Author: Ben Debski

The multinational minefield

Posted on by Ben Debski

It can happen to the best of companies. When China was opening up to foreign investment in the nineties, some of the biggest companies in the world stampeded into the country in a quest for seemingly unlimited profits offered by an increasingly affluent population of 1.3 billion. Brewers, retailers, automobile manufacturers, investment bankers, hoteliers; They all entered China almost en bloc. These were multinationals experienced in cross-border commerce but many came unstuck, their hopes dashed, or at least delayed, for a multitude of reasons.

Red tape, interference from local authorities, corruption, cultural differences, difficulties of distribution, shortages of appropriately trained manpower: the obstacles were many and varied. Many of these pioneering western companies paid a high price and withdrew, considerably the poorer.

But 20 years later, China and the surrounding countries of Asia have become almost the bolthole of companies of all kinds as they seek the profits that are increasingly hard to find in slower-growing Europe and North America. Some of the biggest brands in the world owe their current buoyant revenues to markets that once proved such a challenge to the pioneers. They include Tesco, Renault, Michelin, Diageo, LVMH, Airbus and Boeing among many others.

Challenging as overseas expansion is for any company, the lesson of the economic boom in China and the broader Asia-Pacific region, Latin America and the Middle East and, coming rapidly over the horizon, north and sub-Saharan Africa, is that today’s big opportunities are to be found in fast-growing economies. The challenging issue is how best to tap those opportunities.

Numbers tell the story
But first, the argument for offshore expansion is pretty much evident in the numbers. Emerging markets will grow by an average six percent a year between now and 2018, according to Boston Consulting. By 2020, about 35 percent of all consumer spending, equivalent to $20trn, will come from emerging markets. (At present it’s 25 percent, higher than most people believe.)

For companies producing consumer durables, the arguments are even more compelling. No less than 270 million new households will enter the global consumer market by 2020, all from emerging markets. That’s an increase of 40 percent. Thus the prospects are immense but here’s the sting in the tail. “The obstacles to operating in these high-growth markets are significant and the skills needed to win in them are quite different from those needed in developed markets,” adds Global Consulting in a recent study. Unsurprisingly, even the bosses of hardened multinationals find the challenges daunting. Although most recognise overseas growth is the only option, just 13 percent of senior executives “feel prepared to fully capture this opportunity”, the consultancy found in 2012.

Shoals and reefs
The winners will be those who make the fewest and least serious errors. Here’s a short list of the pitfalls compiled from an analysis of the shoals and reefs that have caught out parvenu companies. Most arise from differences in language, commercial law, accountancy, regulation, geography, logistics, marketing, standards of governance and corporate integrity, availability of credit, bureaucracy, pricing and employment, treasury functions.

To take just language, it’s no accident that Spanish infrastructure-building companies such as Obrascon Huarte Lain, Ferrovial and Abengoa have booked the lion’s share of the major airport, rail, road and energy projects in Latin America rather than English-speaking businesses. Similarly, French-speaking companies, especially banks, have strong presences in francophone African countries such as Morocco and Tunisia. And for the same reason, English-speaking businesses have excelled in the old British Empire, now the Commonwealth.

To make offshore expansion easier – or rather, more predictable because it’s never easy – Boston Consulting has developed a checklist for assessing the risks and rewards offered by new markets, whether emerging or not. Called the ‘Global Readiness Index’, it aims to provide clues to how well a company is likely to perform. Under thirteen ‘critical dimensions of globalisation’, the index provides a snapshot of the company’s assets and handicaps.

They comprise of leadership, vision and strategy, governance and organisation, product offering and/or value proposition, branding and marketing, insight into consumer behaviour, the channels of sales and distribution, availability of talent in the new market, risks and regulations, decisions about mergers and acquisitions or partnerships, strength of innovation through research and development, best-cost economics for sourcing or manufacture.

All up, it’s quite a checklist. Yet every element requires the utmost consideration. “For many companies, even those that have been operating overseas for decades, expansion into emerging markets puts them outside their comfort zone,” explained Boston Consulting’s chief executive Hans Paul-Burckner in early May.

Emerging markets are in a constant state of flux and today’s China, already very different from the China of the nineties, provides a good example. Take the ever-changing issue of employment. “In years to come, multinationals will face new challenges in their China operations”, warns US-based management consultancy Wharton Group. Pointing out that, until now, most multinationals gave their Chinese general managers relatively basic jobs, the think tank insists that just won’t do in the future.

Senior Chinese executives were expected to take on the “relatively straightforward task of either selling his multinational’s products in that country or helping the parent firm establish operations to leverage China’s strength as a low-cost producer”, says Wharton.

Now though, multinationals must develop more educated and experienced Chinese managers and deploy them in a global role, for instance by meeting foreign customers and lending their intellectual knowledge to the parent company’s global operations.

“These forces are coming together to produce a significant change in the role of the China general manager”, explains Jim Hemerling, Boston Consulting’s vice president in Shanghai. “That person now has to be the impresario or orchestrator of a much more complex set of management demands.”

Product liability competition rules
Or take commercial law, or rather just one aspect of it. An issue of increasing importance is product liability and its nature and significance varies greatly from region to region, country to country.

“A physical risk is a universal risk,” explains Martin Sijmon, risk manager for Sweden-based truck and bus manufacturer Scania. “A fire in a factory in Brazil is the same as a fire in France because there are common elements in these plants. But product liability is much more complicated. If a Scania school bus were to crash in UK, the company’s exposure would likely be very different if that were to happen in, say Africa. Not only are the laws different, so is the culture in terms of the value that is put on people’s lives, unpleasant as it is.”

Competition law is another issue. All over Asia, young competition watchdogs are getting tough. Hong Kong’s imminent competition watchdog, for example, will have extremely sharp teeth. Any “abuse of substantial market power”, to use its own phrase, could expose the offending company to penalties as high as ten percent of local turnover for up to three years. It will be one of the toughest financial penalties of any competition authority.

Then there’s treasury functions, a vital cross-border pipeline for far-flung companies that are routinely mismanaged. According to a new study by consultancy McKinsey, companies with cross-border operations typically end up with far too many accounts. The rough average for global organisations is about 850 accounts while even the most disciplined corporate treasuries typically run around 200. One shocked chief financial officer of a heavy-materials company discovered after a global test that he had 300 accounts in 25 countries. And between them, they held a three-month daily average balance of over $80m, which was doing nothing for the company but a great deal for the banks.

Plan of attack
Companies have more than one way to tackle new markets. In fact there are three, according to Beat Simon, European chief executive of Agility, a multinational logistics company with 22,000 employees in 100 countries. He identifies ‘outsourcing’ (contracting an aspect of the business to a third party which may or may not be in another country), ‘offshoring’ (relocation of a service or production process to another country) and – possibly new to many – ‘nearshoring’. The last is really offshoring, but to a near neighbour.

But to start with offshoring, where the advantages may seem obvious. “During the initial stage of offshoring, one of the main decision factors is the substantial percentage of labour cost in the manufacturing process of some goods”, explains Simon. “By moving a production process to [another country], manufacturers could be more profitable as well as more competitive by greatly reducing that part of the production cost. A counterbalancing factor from the logistics perspective is the increased cost in the supply chain in terms of complexity, lead time and transportation.”

Dyson, the UK-based vacuum-cleaner manufacturer, did exactly that by shifting most of its production to Malaysia a few years ago. As founder Sir James Dyson pointed out at the time, he could buy scientists there for the same wage bill that hired technical staff in Britain.

Dyson’s experience illustrates exactly what Agility’s Beat Simon points out. “In addition to low labour costs, there were many other enticements to offshore,” he says about the early stampede to China and other lower-cost manufacturing locations. “Namely less complex building regulations, less strict environmental regulations, huge potential economies of scale, or more straightforward labour contracts and labour regulations.”

But, as emerging-market economists point out, those attractions could be diminishing as costs in such countries rise. According to Boston Consulting, more than a third of American manufacturing executives “either plan to or are actively considering moving products back from China.” The percentage rises to 48 percent among companies that do more than $10bn in revenue. And there are some big names there including GE, Boeing, Sirkin, Ford, and Masterlock.

In many cases this is more of a judicious, partial withdrawal than a wholesale one. “China’s labour costs, other costs and logistical expenses are soaring rapidly, while US labour costs are beginning to stabilise at a comparable level with a growing China when all factors are considered,” the consultancy explains.

Green and clean
Also changing is Asia’s reputation for softer environmental regulations that had the effect of reducing start-up costs. Under pressure from international and their own environmental agencies, governments are in a hurry to enforce much greener standards on companies because the rampant exploitation of fossil fuels has contaminated air and river ways and visibly reduced the benefits of economic growth.

“They are under pressure to reduce air pollution and are implementing new rules and regulations to reduce and mitigate the effect of greenhouse gas emissions”, points out Surupa Matho of UK-based Ovum consultancy group in a new report.

Under the Durban rules agreed in late 2011, most Asian governments are working to greatly reduce carbon emissions by 2020. “Increasing regulation has forced companies to develop and incorporate carbon reduction strategies,” adds Matho. “Demand has placed sustainability strategy on the mainstream agenda.”

History matters
Very probably, few European companies other than Spanish and Portuguese-speaking ones would contemplate entering Latin America if it were not for the El Dorado of bigger-spending households. Language, laws, labour relations, governance, stock markets: they could hardly be more different from those at home base.

Worse, rogue nations such as Venezuela send the wrong message. It would be a brave company that would open up in Venezuela right now. The current leader in outright appropriation, president Hugo Chavez, seized just under 500 companies last year including, preposterously, a professional basketball team sponsored by Conferry. (Latin American think tank Econoalitica estimates the economic damage over the last seven years at $22bn).

However, Venezuela is not typical of Latin America. The region is rapidly adopting western-style systems of public and private governance under pressure from international agencies such as the World Bank. For many European companies, Latin America abounds with commercial opportunities, even Argentina. UK stadium-design specialist, Populous, heads a consortium building the $100m Velociudad theme park in the country.

For UK’s Oxitec, an Oxford-based start-up specialising in mosquito control, it’s important to approach Brazil with an open mind. “Brazil is particularly keen to embrace technological advancements and we have found federal and state institutions and companies keen to engage”, chief executive Hadyn Parry told the writer. “From a science viewpoint it is very strong. For any company going to Brazil there is a lot to learn from the country.”

Paraguay is another nation with economic promise, where rules on capital adequacy for its banks are some of the toughest in the world and would shame institutions in USA, UK and Europe. As Conor McEnroy, chairman of Asuncion-based Sudameris bank, told the writer: “Tier one capital must be 13-14 percent by law, but the average tier one is 17 percent. We don’t do funky stuff in Paraguay. Regulation is plain vanilla, black and white, no grey”.

And with about a million US citizens living there and keeping pressure on the stock market and other regulatory authorities, Mexico has steadily adopted American techniques in corporate governance and is moving towards the Sarbanes-Oxley standards that were implemented in USA after the Enron and other corporate scandals. Peru is also turning into a preferred location for Europe and UK investors. Roughly a score of the top 100 companies on the Financial Times FTSE index, for example, have direct investments in Peru.

Weathering the storm

Posted on by Ben Debski

Strolling down Reykjavik’s leafy boulevards, it is hard to believe that less then four years ago the whole country was plunged in economic turmoil. Today the capital is bursting with energy. The streets are lined with colourful buildings; cosy cafes, world-class restaurants and luxurious hotels give the city the air of a European capital; but still Reykjavik manages to hold on to its small town innocence.

Iceland is a country in touch with nature, and it is exactly that which has attracted droves of tourists to the island since 2010. You will not find skyscrapers in the capital, instead an array of geo-thermal pools and untouched nature. Reykjavik is the natural gateway into Iceland; the city is surrounded by sea on three sides, and beyond that bare, snow-capped mountains. It is renowned for its vibrant nightlife, and is full of trendy bars and stylish nightclubs. But what really attracts visitors are outdoor activities like whale watching, wild-river fishing and golfing. It is not by coincidence that Iceland’s tourism industry revolves around the island’s natural assets as opposed to extravagant man-made attractions; barely four years ago the country was virtually bankrupt.

Iceland was the first domino to fall when the financial crisis hit in 2008. After years of deregulation and out-of-control borrowing, Icelandic banks found themselves unable to refinance their debts with foreign lenders and defaulted. Unemployment soared; angry protests and mass-emigration ensued. The krona lost almost half of its value and the cost of imports, vital for an island nation, skyrocketed. The banks’ collapse and default dragged down much of the economy with them.

The great plunge
The IMF had to rush in with a bailout including $10bn of loans. The first step was to devalue the currency, which boosted exports, like fish, and curtailed costly imports, like cars. Unlike Europe, Iceland delayed austerity, and increased social welfare in the hopes that sustained spending would boost growth. It worked. Two years after the default, Iceland was growing again, and has continued to do so, albeit slowly. The GDP is set to increase 2.5 percent this year, roughly the same as last year and a solid rate for a country less then two years out of recession, especially in the current global economic landscape.

It has not all been plain sailing though, and the country endured two years of hardship.

The financial industry is still in tatters, and there has been little capital for investments in building future businesses. But there are definitely signs of improvement; last February rating Agency Fitch upgraded Iceland’s debt from ‘junk’ to investment grade and the country has started borrowing on global markets again. It is also the only country to have pursued criminal charges against some of those involved in the creation of the crisis; they have put their former Prime Minister Geir Haarde on trial and begun proceedings against some of its once all-powerful bankers.

On the other hand, unemployment is still stuck stubbornly at seven percent, lower then at the height of the crisis, but definitely higher then the average of three percent enjoyed in the 20 years before that. The krona is still worth about half as much as it was in 2007, the peak year before the trough.

‘A bad rower blames the oars’
But devaluation has been the country’s salvation. The low krona has brought a windfall for Iceland’s tourism sector as the lower prices have made Iceland’s striking landscape even more appealing to foreign visitors. Icelanders have made the best of a bad situation. Many were forced to seek alternative employment and the fishing industry is also booming. Even the tumultuous volcanic eruptions that brought Europe’s air traffic to a standstill have been seen as good news for tourism in Iceland. Visitors have been keen to travel to the infamous Eyjafjallajökull volcano, which sometimes still smokes and splutters.

Local tour operators and hotel owners have been more than accommodating to foreigner’s wishes; there are daily excursions around the area on the menu at tourist agencies.

Icelanders pride themselves on their Viking background, and credit it with their national survival instinct. Mythology dictates that Iceland was populated by the younger sons of Norwegian Vikings, brave men who would never inherit, so set out to find their own fortunes. The first stop was Ireland, where the estranged Vikings got all the most beautiful women, and then sailed out toward the Atlantic, eventually settling in Iceland. Local men consider themselves to be the bravest and their women to be the most beautiful. It might have been this type of thinking that led Icelandic bankers to take such enormous risks before the meltdown. But it is certainly this national pride, confidence and resilience that is helping lift the country out of the crisis.

Reykjavik is brimming with new coffee shops and galleries. The city is busy with tourists all year round. In the summer they come for the exquisite nature; Iceland in July is the land of the midnight sun. Visitors enjoy salmon fishing, midnight golf, glacier trekking, and horse riding. During winter’s long and cold nights the city’s fine-dining restaurants and luxury boutiques make for the perfect city break and visitors pack out its stylish bars and nightclubs. And of course there are the northern lights; a natural spectacle of breath-taking beauty which is enjoyed from hotel balconies and windows all over Reykjavik.

 ‘A system that works is golden’
All it takes is a short drive out of the capital to find yourself surrounded by unspoilt landscapes. Iceland is a volcanic island, and its landscapes are unique because of that.

Black lava-fields, craters, and volcanoes are scattered among glaciers and green treeless fields. Over the years volcano eruptions and glacier movements have formed a jagged landscape with so many cliffs and waterfalls that not all of them even have names. Iceland has been capitalising on its natural assets and the government has been working tirelessly to promote sustainable eco-tourism in the island. This niche market has been extremely lucrative for the tourism sector, which is taking it a step further by offering luxury eco-tourism opportunities  such as the appealing geo-thermal spas where guests bathe in naturally hot outdoor spring water pools, surrounded by geysers and sipping champagne.

Last year over one million foreign visitors came to the island, a 16 percent increase from 2010 and 51 percent from 2005. For a country with a population of 320,000, these are remarkable numbers. Tourism has been one of the most rapidly expanding industries in post-crisis Iceland, along with fisheries. Icelanders are keen to receive foreign visitors, but take much care to preserve their natural environment; after all, that is what tourists come to experience. Most of the island is powered by geothermal or hydroelectric energy, and the locals are keen environmentalists.

Icelanders have successfully done what southern European economies can only dream of doing right now; they changed gears in their economy. This has entailed a complete restructuring of Icelandic society; there are more fishing and rural jobs and fewer corporate ones, but there is certainly a thriving creative industry. Reykjavik has recently opened the Harpa concert hall, a futuristic stained glass and steel building which has already attracted national and foreign stars like Bjork and Yoko Ono, and over half a million visitors in the process. Harpa is a sign of Iceland’s commitment to boosting tourism; it may have cost many billions of krona, but was completed despite the economic downturn. And much like Iceland’s recovery, it has been a success.

A sporting chance

Posted on by Ben Debski

When Barcelona won its Olympic bid in 1986 to host the now legendary 1992 Games it was an industrial city with little economic or tourist appeal. The successful bid provided the Catalan city with the impetus and capital it needed to reinvent itself as an artistic and cultural epicentre and popular tourist destination.

Since then, the Olympic Games have been seen as the perfect opportunity to redevelop degraded or struggling urban areas. When London won its bid to host the 2012 Games in 2005, its plans revolved around reinventing East London – one of the most economically deprived areas of Britain – much like Barcelona did to its port region. But beyond that, cities have used the Olympic Games to project themselves internationally, and emerge on the other side with a new image – and hopefully a lot of new business opportunities and wealthy tourists.

With the help of the 2012 Games, London is trying to rejuvenate its image and re-emerge as not simply an ‘Olympic Capital’, but a modern, cosmopolitan urban capital that is always ready for business. However, it remains to be seen if London has what it takes to convert that investment into a lasting and positive legacy.

Barcelona, 1992
The 1992 Olympic Games in Barcelona have since been labelled the ‘model Olympics’. The Games themselves ran smoothly, but the real triumph was the reinvention of Barcelona’s image. Prior to 1992, the area that is now Port Olimpic was a degraded industrial tip and the city, despite being adorned with Antoni Gaudi’s magnificent modernist buildings, was not on anyone’s list as a desired holiday destination.

Barcelona won their Olympic bid just four years after the country’s first free elections in 40 years. The city, and Spain as a whole, was eager to prove to the world that they were ready to embrace modernity and democracy. “The entire Spanish society was involved and looking at Barcelona to represent on a worldwide level the desire of all Spaniards to become a modern society that was preparing for the arrival of the 21st century”,  says Pere Durán, the former General Director of Turisme de Barcelona.

Between winning the bid in 1986 and the opening of the Games in July 1992, Barcelona spent e11bn, the bulk of which went on the construction of Olympic venues, the Olympic Village and supporting infrastructure. “The Games were the excuse, perhaps the incentive, for a general process of analysis of the city in general and in particular of its role as a tourist centre,” says Durán. It is said that before the Olympic Games came to town, Barcelona was a city with its back to the coast, however, such was the extent of the development that the city was spun on its axis.

Barcelona cleverly used the Games, and the in-pour of investment that came with their successful bid, to redevelop the city as a whole. The plan was to build four ‘hot-spots’ of new sports and support facilities around the city. A brand new highway ring road that encircles the city was also built, linking all the Olympic sites to the centre and alleviating traffic. The decadent area of Poblenou went through an extensive rejuvenation process that included transforming the non-descript stretch of Mediterranean coast into two miles of white sandy beaches. The whole area was connected to the city centre by an extension of the subway lines, which has also helped solve public transport issues in the city after the Games.

Barcelona had a clear and well thought-out new image development strategy and all developments were envisioned with this rebranding in mind. Historic buildings were restored and top international architects were hired (at great cost) to design new ones; Santiago Calatrava is behind the Montjuic Telecommunications Tower, Vittorio Gregotti designed the lavish Montjuic stadium and IM Pei created the International Trade Centre at the new port.

The city’s entire Olympic preparation process was carefully designed over two years before the bid was won in order to ensure their goals were achieved. Every new piece of infrastructure had a future role in the city’s life. The Olympic Village was sold off as apartment blocks, and local estate agents have reported a waiting list to buy property there. The port area, beach and marina are successful tourist attractions, the athlete’s polyclinic is a public GP surgery and the athletes’ former dining hall has been converted into a shopping centre. All of the sports facilities are now used by local teams or school children – no resources were spared in the transformation – but none have been wasted since.

Turisme de Barcelona, the local tourism board, capitalised on the city’s new image and promoted it relentlessly. It worked; Barcelona is now the fourth most popular tourism destination in Europe. In 2007 the Catalan capital was voted fourth best European city to do business in by estate agency Cushman & Wakefield. In a report for Bloomberg Businessweek; the city ranked 11th in the same survey in 1990.

Athens, 2004
If Barcelona and Beijing provided plenty of inspiration for the London 2012 Olympic Committee, the opposite is true for Athens. The spiritual home of the Olympiads missed out on the chance to host the centennial games in 1996 after the International Olympic Committee expressed concern about Greece’s ability to cope with the preparations for the event. Atlanta was chosen instead and Athens was given another eight years to prepare for when it was finally granted the honour.

It is estimated that Athens spent twice the amount stipulated in the original budget, bringing the total amount invested in the Games to  h9.4bn, though no official figures have ever been released. Where Barcelona had a stringent legacy plan, Athens didn’t seem to have had any idea at all. Since the Games moved on, as many as 21 of the 22 venues have been completely abandoned.

“We had some very good plans, well-laid plans,” insisted Athanasios Alevras, former deputy minister of culture in the run-up to the Games. “The idea was to build sites that could be then converted to benefit the lives of Atheneans afterwards. The Olympic Village was a great plan…We promised infrastructure and facilities that then weren’t delivered. The plans were not respected. Basically, it’s a disaster.”

Athens built an enormous Olympic Village complex in a derelict suburb 12 miles northeast of the historic centre. The original plan was to create an actual village by turning over the apartments to social housing after the games. Schools and hospitals would be built to serve the community but these never materialised. Most of the commercial establishments in the Village closed just months after the end of the Games. Today the apartment blocks have descended into disrepair, despite being partially occupied.

Perhaps even more worrying is the s500m the Greek government has claimed to have spent in the upkeep of the venues since the end of Games. Most of the facilities seem abandoned. Some have even had the piping and windows looted. The government insists there are plans to sell off the venues but there certainly has not been much interest.

As the Greek economy continues to plunge into a bottomless pit of debt and austerity, some Greeks are having a hard time getting to grips with the Olympic Legacy fiasco. “It was a wasted opportunity and one that sticks in the throat of many people. We are left with installations that are rotting away because we don’t even have the money to maintain them. A lot of entrepreneurs and property developers got rich very quickly,” said Sofia Sakorafa, an independent MP thrown out of the socialist PASOK party for voting against the controversial bailout package in 2010. “How can we begin to think about measures to repay our debt when we don’t know where the overspend came from and who is accountable for it?” she asked.

The 2004 Games were supposed to launch Athens as a worthy European capital; a good place to do business and a modern city. In fact, the opposite has happened. The financial crisis has raised even more suspicion of corruption, and the glib attitude towards the Olympic legacy despite the billionaire investment did more harm than good in terms of Athens’ image.

The 2004 Games were hugely unprofitable, in the months following the event the shortfall amounted to G50,000 for each Greek household, and the taxpayers are continuing to shoulder the burden to this day. Meanwhile some of Athens’ most deprived areas endure the burden of white elephant Olympic facilities amid stringent austerity measures, a  harsh reminder of the price they paid for the ‘honour’ of bringing the Olympics home. »
Beijing, 2008

China’s Premier Wen Jiabao said in 2008 that the Beijing Olympic Games, happening later that year, were a chance for the Chinese nation to show the world “how democratic, open, civilised, friendly and harmonious” it was. While Barcelona used the Games to renovate their industrial city, for Beijing it was all about revamping China’s international image.

No expense was spared to give Beijing the appearance of a modern, hi-tech, global capital. In fact the whole process was reported to have cost an unfathomable $43bn. China built a brand new Olympic Park, 37 stadiums and venues in Beijing, a sailing centre in Qingdao, football stadiums in four other cities as well as 59 training centres and infrastructure projects for the Paralympic Games. Beijing’s National Stadium, dubbed the ‘Bird’s Nest’ because of its intricate exterior shell, cost $450m and was designed by Chinese artist Ai Wei Wei in partnership with renowned Swiss architects Herzog & de Meuron.

Beijing was notorious for its chaotic transportation system and miles-long traffic jams. In the lead up to the Games the city invested $1.1bn on improving its subway system, completing a light-rail line and constructing and refurbishing hundreds of roads and avenues with high-tech traffic control systems. Improved public transport was also vital for the city’s goal of a ‘Green Olympics’.

The city worked exceptionally hard at improving its air quality before and during the games. A further $12bn was spent building water treatment plants, solid waste processing facilities, green belts and an entire fleet of environmentally friendly buses, amongst other things. In particular the entire Olympic Village was built as China’s largest green building complex and combines a variety of high and low-tech solutions to reduce energy and raise efficiency. The US Green Building Council awarded the Olympic Village a LEED gold certification; the largest building complex in the world to receive such a high rating, according to eco-tech website Treehugger.com.

More than in any other Olympic Capital since, the 2008 Games changed the face of Beijing and the city’s skyline is now peppered with modernistic creations by internationally renowned architects. It has been estimated that foreign tourism will increase between eight and nine percent annually in the decade to 2018.The Olympic Park has become a huge tourist destination in its own right. In 2011, five million more Chinese tourists visited the area than visited the Forbidden City. For the Chinese, the Park is a matter of national pride.

But Beijing has been less thoughtful then some of its Olympic predecessors in planning their Olympic legacy. Four years later, the traffic in the city has again halted in gridlock and air pollution is back to pre-Olympic levels. Even the planned shopping and leisure park around the Bird’s Nest is yet to break ground. Conversely, the Olympic Village has enjoyed monumental commercial success, with apartments in the eco-friendly complex selling for between $500,000 and $1m – almost twice the average property value in the area.

However, the whole Beijing Olympic process was marred in controversy because of allegations of human rights violations in clearing the sites for the new stadia. In fact, it is estimated that $200m was spent demolishing dilapidated housing and urban buildings to make way for grandiose sports arenas and countless high-tech new commercial buildings. In another high-profile controversy, Ai Wei Wei, the National Stadium’s creator, was put under house arrest in 2011 for criticising China’s notorious human rights violations. But despite the controversy, the gargantuan investment paid off: the 2008 Olympic Games have contributed around 2.5 percent of China’s overall economic growth annually.

London, 2012
The European economic climate has changed drastically in the seven years since London won its Olympic bid. The downturn has meant that London has had to revise some of its projects and re-think some of its Olympic Legacy goals. Notably, the London Legacy Development Corporation (LLDC), the institution in charge of managing the Olympic assets post-Games, has been unsuccessful in negotiating tenants for the Olympic Stadium after the Games move on.

From the early stages of the process, London’s aim was to revitalise Stratford, the impoverished neighbourhood around the Olympic Park. The Olympic Village is central to this plan where half of the apartments will be converted into affordable homes, and the other half will be commercially marketed. The blocks are attractive buildings, arranged around gardens and commercial properties, though there is something distinctly reminiscent of the long-despised concrete housing estates of the 60s. In addition, the area around the Olympic Stadium will be re-christened as the Queen Elizabeth Park post-Olympics, and a series of major architectural firms are in the process of bidding for contracts to build 11,000 new houses.

A key point of Barcelona’s successful port area regeneration was it transformed a derelict part of the city into a desirable tourist destination, though that will be substantially harder to achieve in Stratford, an area notoriously lacking in attractive physical and cultural attributes. The ArcelorMittal Orbit tower, designed by Anish Kapoor as London’s answer to the Eiffel Tower, is the anchor that will ensure a steady flow of tourism to the area. At 377ft tall, the observation tower looms over London, bright red and contorted, a beacon of urban art. Like the tower, all of the new stadia and facilities have been designed by uber-architects, most notably Zaha Hadid’s Aquatic Centre, a modern building inspired by “the fluid geometry of water in motion” according to the architect, and resembling a giant jelly-fish.

Cutting-edge architecture has become a fundamental part of revitalisation processes, because it will ensure that the attention sparked by the Olympic Games will endure once the party is over. Cities like Bilbao and Valencia have put themselves on the tourism and business map by investing in forward-thinking and attention-grabbing architectural projects. London has already done this successfully with buildings like Norman Foster’s Gherkin.

However, despite the £9.3bn investment so far, there have been substantial criticisms of some of London’s strategies. In particular, London has not invested nearly as much in transport as would have been appropriate for its size. Though the underground system has been expanded in the East End, and there have been road redevelopments, London is a city perpetually congested and its transport system operates full-to-capacity on any given day – without the additional burden of 11 million sports fans. Add to that the threat of transport union strikes mid-Games, and transport could be the Achilles heel of London 2012.

There is also the issue of modernising and gentrification. In the process of rejuvenating Stratford, London is creating yet another coveted and expensive neighbourhood. Real estate prices have shot up, and will likely continue to rise as the Olympic Park is converted into a green and leafy neighbourhood before 2014. Long-term residents are being out-priced and being forced to move away to cheaper parts of the city. This process of gentrification moves poverty away, but does not resolve it. London’s dream of a mixed-income, diverse and modern Stratford fell by the way-side when Olympic plans prioritised star-architects and luxury shopping centres in lieu of restoration and transport development.

But what does London stand to gain from the Olympic Games? It is already the second most popular tourist destination in the world, with over 14 million annual visitors, and the financial and business hub of Europe. The best that London can hope to achieve is a greater sense of national identity and community, a monumental accomplishment for a country in the throes of austerity and with little optimism for the future. Prime Minister David Cameron himself suggests that this summer will be a celebration of “what is already great about Britain”, in an effort to remind the world that it is still an open, strong and confident country, “moving forward to a better future.”

The comfort emporium

Posted on by Ben Debski

Located at the nexus of the financial district, the 14-storey Ritz-Carlton with its 341-room hotel and 124 executive residences was the second in Dubai and the sixth property in the region for the award-winning luxury hotel company. As the only hotel to be directly linked to the complex of buildings in Dubai International Financial Centre, The Ritz-Carlton, DIFC caters extremely well for the needs of  business travellers.

Commenting on the hotel’s accolade in the Business Destinations Travel Awards, General Manager Lothar Quarz said: “We are honoured to be recognised with this award of Best Luxury Hotel in Dubai…It reflects the passion of our ladies and gentlemen who are committed to deliver a personalised experience for our guests each and every day.”

Renowned for delivering a world-class service, The Ritz-Carlton, DIFC has strived to set a new standard in Dubai since opening in January 2011. In doing so, the hotel recognised that business travellers often have hectic schedules while on the road. To alleviate the stress that comes with these high-pressure positions, the hotel has implemented a complimentary C.E.O. – ‘Chief Executive Organiser’ – service, dedicated exclusively to guests staying in one of two Royal Suites.

The C.E.O. provides round-the-clock assistance to guests, ranging from administrative tasks for a last-minute meeting to laundry pressing for that important presentation. “This is so much more than a traditional butler service”, states Lothar Quarz. “Our guests’ comfort is the highest priority and our C.E.O. is an extension to our guest’s own business team – making travel arrangements, providing administrative and technical support, or simply booking business lunches – whatever is needed to ensure their trip is a success.”

Royal gatherings
Located on the top two floors of the hotel, the two Royal Suites are each 220sq m in size with floor-to-ceiling windows offering stunning views of The Gate at Dubai International Financial Centre and include a separate bedroom, study, living area, kitchen and dining room. Part of the Ritz-Carlton Club Level, guests can expect an additional level of luxury combining intimacy, comfort and exclusivity with the personalised service and attention to detail that are the hallmarks of The Ritz-Carlton. A dedicated C.E.O. is automatically provided for any reservations in the Royal Suites.

Boasting the largest ballroom in the city’s financial district in combination with the legendary Ritz-Carlton service, The Ritz-Carlton, DIFC has delivered on its promise to be Dubai’s ultimate destination for stylish and luxurious meetings and events. Even with a total conference and catering space measuring an impressive 2,574sq m, the best feature is undoubtedly the 1,400sq m Samaya Ballroom (Arabic for ‘my sky’).

The main advantages for event planners include the ground level location, private driveway and hotel entrance, ground-level loading dock and service areas, pillar and chandelier-free function space with a ceiling height of six metres, motor vehicle access directly into the ballroom as well as retractable walls which make the room divisible by four.

The rooftop terrace directly above the ballroom brings an additional welcome element of outdoor space that is perfect for weddings and other special events. With a divisible ballroom plus an additional eight function rooms, The Ritz-Carlton, DIFC is the ideal setting for the city’s corporate conferences, special events and happy occasions.

A dedicated catering and conference services team of Ritz-Carlton ladies and gentlemen take care of every detail, allowing the meeting planners and delegates alike to make the most of their time.

The hotel bar is located in the prime welcoming position at the end of the DIFC bridge, ensuring No. 5 Lounge & Bar is the social hub of the hotel. Other dining selections include Blue Rain, the signature Thai fine-dining restaurant; Can Can, a French all-day dining brasserie and the Center Cut steakhouse.  All provide multiple settings for the enjoyment of the cuisine made famous by The Ritz-Carlton chefs. The Lobby Lounge & Terrace offers a casual elegance for the enjoyment of afternoon tea and Dubai’s only chocolate and champagne experience, while each restaurant boasts an expansive outdoor terrace.

Further information: www.ritzcarlton.com

The great escape

Posted on by Ben Debski

Admit it; it’s no coincidence this year’s family trip to the sun falls between 27th July and 12th August. Don’t worry though, you’re not alone, as we all know the Olympics are practically upon us and as London prepares, a fair few of us are starting to quietly slip away.

Hopefully the mudslinging between the pros and antis can stop for a bit, at least during the beach volleyball, please. The optimists have championed the London Olympics for its injection into UK industry – 98 per cent of the facilities being built by British companies, the boost to tourism, the overall feel-good factor, longer term benefits to East London and so on.

Meanwhile, politicians and accountants are admitting behind closed doors it’s been a mistake, given what the real final cost will be and how dire our economic situation has become since the day Becks high-fived Red Ken when we won the bid seven years ago. A bit of extra debt we could cope with under normal circumstances, but we’re in recession now, and the resultant financial burden on the government will be seriously painful.
But let’s make the most of it. It’s going ahead and some good will come of it. Playing the optimist and being in the business of overseas property, I couldn’t help looking back at a previous Olympics that is consistently considered a major success, not just as an international sporting event but on a social economic level. Hosting the 1992 Olympics – coincidentally, we were in a recession that year too – was the start of Barcelona’s transformation from a relatively unknown city in north-east Spain, tired after years of oppression under the anti-Catalan Nationalist Franco era, into one of the hippest and world’s most cutting edge spots.

“The 1992 Games are widely credited not just with transforming the landscape of Barcelona itself, but also with re-branding a city that has since become one of Europe’s most popular tourist destinations,” says Sally Veal, who writes for the Overseas Guides Company from her home on the Costa Brava told me. “The surrounding areas benefited too. Many of the coastal resorts near Barcelona, particularly the Costa Brava and Costa Dorada, became very popular with following improved facilities.”

Having frequented this part of Spain regularly since I was still in armbands, I’ve witnessed the change – and improved facilities. I remember when visiting the family holiday home on the Costa Brava meant flying to Barcelona (long before Ryanair knew Girona existed), which was a place best avoided, with its shady back streets, run-down industrial seafront and army of pickpockets. Fast-forward a few years to post-Olympic Barcelona, and as a young adult it had become a magical place that oozed coolness and warranted a visit at any opportunity. Of course, the Olympics can’t take all the credit for this metamorphosis, but a fair chunk of it.

Complementing the new sports facilities, the redevelopment of an ugly industrial area on Barcelona’s seafront into the Olympic Village, named Poblenou (“New Village” in Catalan) is proof such Olympic projects can have an afterlife. Two iconic apartment blocks overlooking the new marina were built for the athletes and today both are used, one as office space and the other a five-star hotel. Meanwhile the district has grown popular with artists and young professionals and many of the old factories there have since been converted into galleries, shops, studios, and lofts. At the time, Barcelona’s mayor, Maragall, called the development of the Olympic Village the most important renewal project for Barcelona since the late 19th Century, when the city’s medieval walls were knocked down and replaced by the Eixample district.

From the sun to the slopes, the more recent 2010 Winter Olympics in Vancouver are also widely considered a success. “The Games left their mark on the city in terms of infrastructure, most notably the highway connecting Vancouver and Whistler was significantly improved,” resident OGC writer there, Stewart Buchanan, told me. “Following the Games, the Olympic Village in downtown Vancouver, was released for sale providing an influx of high end condominium units. Critics moaned the cost incurred was too great for a city like Vancouver to bear but on the whole the spirit of the Games lifted Canada and brought the country together.”

All said and done, an event that brings a surge of employment opportunities – temporary or longer term – and immediate boost to tourism and local suppliers in London must be welcome during a recession. And, thankfully for many, you don’t have to be in the grandstand or even in the country to catch the odd event. Satellite TV and modern-day communications mean you can sit back and enjoy the beach volleyball on your TV or iPad, wherever you happen to take the family this summer.

Richard Way is editor of The Overseas Guide Company and travels extensively

History in the making

Posted on by Ben Debski

This year marks the 20th anniversary of the Museo Thyssen-Bornemisza. Two decades have passed since the Museum’s inauguration on October 8th 1992, during which time it has established itself as one of the most important cultural institutions in Madrid. As a museum, the Thyssen is now an international reference point. Also during this period the works from the Carmen Thyssen-Bornemisza collection have been placed on display at the Museum where they have been seen by hundreds of thousands of visitors. Finally, the temporary exhibitions held at the Museum have become events keenly anticipated by art lovers.

Over the course of 2012 a wide range of activities and innovative programmes will be marking celebrations of this 20th anniversary. Some, such as those detailed below, have already been organised while others will be added to this calendar over the coming months. Free entry for all visitors was introduced in 1992. The first initiative, starting on January 15th, will be to offer free entry to the permanent collections and temporary exhibitions to all young people who are also celebrating their 20th birthday this year. These visitors, who must provide proof of age, can visit the Museum for free until December 31st.

Exchanging gazes
This new exhibition programme will present special installations of works from the permanent collections with the aim of establishing a dialogue between old and modern painting. Consequently it is hoped that this will encourage a more reflective gaze on the part of the viewer, leading to new interpretations. Overlapping Gazes 1 is entitled ‘Mondrian, De Stijl and the Dutch artistic Tradition: 17th-century Dutch Painting’ and features works by Koninck, De Hooch and Vrel as well as Piet Mondrian and his colleagues from the De Stijl group (Van Doesburg and Van der Leck). The next in the series will present Expressionist painting alongside German Medieval and Renaissance painting (May 14th to August 19th) while the third will juxtapose Freud and Watteau (4 September to 9 December).

Temporary exhibitions and events
2012 will be a particularly good year for temporary exhibitions at the Museum. It starts with Chagall (February 14th to May 20th, in collaboration with Fundación Caja Madrid), followed by ‘Visions of India’ (February 28th to May 20th, with works loaned from the San Diego Museum of Art). June sees the start of the major exhibition on the American painter Edward Hopper (June 12th to September 16th). To end the year there will be two very different events: ‘Gauguin: Voyage to the Exotic (October 8th 2012 to January 13th, 2013) and Cartier (October 24th, 2012 to February 17th, 2013).

The museum will also be holding an illustration competition entitled ‘A Museum as Young as You’. This competition is held in conjunction with the Youth Affairs Office of the Region of Madrid, the Escuela Artediez, the IED Madrid and Treseditores. The competition is open to the Museum’s youngest visitors, who will be invited to offer their vision of the Thyssen Museum in the form of a drawing. Entry opened on February 8th, when it was launched in the museum’s Auditorium, and closed on April 15th.

In order to further compliment the collection and to make exhibits even more accessible to the public, the museum will be providing free entry on Sunday, October 7th – the day before the museum’s 20th anniversary.

Special events and lectures
There will be late-night opening on Saturdays until 11pm throughout the year as part of the ‘Nights at the Thyssen’ programme. Either the temporary exhibitions will remain open until that time or the 20th Century galleries of the Permanent Collection will remain accessible when there are no exhibitions on at the Museum. As has been the case up to now, Saturday evenings will be the time for special events such as concerts, DJ sessions, dance shows and more. The first Saturday in each month is ‘Young People’s Night’, when all holders of Young People’s Cards issued by the Region of Madrid can take part in the activities listed on carnejovenmadrid.com.

With the support of Bank of America Merrill Lynch, the month of June sees the start of the restoration of ‘The Paradise’; a masterpiece from the Thyssen Collection. The restoration work will be carried out in the Museum’s Main Hall where visitors can watch it as it takes place.

During our anniversary year we would like to pay tribute to all those who support us through their financial contributions. There will be a special day for Friends of the Museum and we will be honouring the longest serving – some of whom have been supporting and participating in the museum’s projects for almost twenty years – with a special badge.

The work of world-famous American painter Edward Hopper has inspired numerous filmmakers. On various days in June the Museum will be bringing together specialists in the work of the artist, film directors and directors of photography to discuss and show some of their films and documentaries on the artist. The Museum’s website will also be offering a series of thematic routes aimed at all members of the public.

This extension of the Collection onto the web will allow users to pursue multiple directions including gastronomy, music, portraiture, Don Quixote, jewels in paintings, inventions and artistic techniques: all will become keys to discovering new and further aspects of the works in the collections.

In addition to this programme of educational events, Guillermo Solana, the Museum’s Artistic Director, will give a series of lectures that will analyse the collecting activities (tastes, acquisitions, the petite histoire etc) of the first two Barons, Heinrich and Hans Heinrich, and of Baroness Thyssen, whose passion for art gave rise to the stunning collections now housed by the Museum.

In November, the Museo Thyssen-Bornemisza will also be holding an international conference entitled ‘Museums in Education: From Action to Reflection’ an event organised by the museum’s Department for Research and Further Education. Over the past twenty years the educational role of museums has undergone profound changes, resulting in a greater number of activities and in a more diverse public sphere.

This conference will firstly focus on an analysis of the significance of the past two decades and will also look ahead to the future of educational activity in museums over the coming decades. A new feature this year is the launch of a ‘virtual’ conference that will run alongside the ‘real’ one with the aim of making this event as accessible to as many professionals as possible and of facilitating access to education professionals in other parts of the world.

Further information: www.museothyssen.org

A divine intervention

Posted on by Ben Debski

Ever imagined how a mix of refined luxury and unadulterated nature could create a unique blend of resort experience? Discover this and much more on an evocative journey of wellness and wonderment at Carnoustie Beach Resort; a bountiful landscape created on the theme of conservation and rejuvenation.

When life takes a toll, there is no better place to seek refuge than in the welcoming arms of Mother Nature herself. This decision should bring you down to Kerala; a subtropical Indian State richly endowed with nature’s bounties. Following its balmy air, you’ll find refuge in backwater county, Alleppey, where none other than Carnoustie Beach Resort will welcome you to your idea of bliss.

Carnoustie Beach Resort
Set in 27 acres of virgin land, Carnoustie Beach Resort has been created to make both the modern vacationer and seasoned traveller feel at home. While there is plenty to do and explore at the resort, there is also opportunity to simply lie back in the curative brine of the Arabian Sea, or the soothing freshwater pool adjoined to your villa. From the putting green to the archery square, there are plenty of activities to keep you engaged. If, however, you are on a soul-searching trip, the paved path to the natural Spa will show you the way to banish your fatigue and make your past worries seem like a distant memory. This is the place where you will heal, and where you will finally come back to life.

Just about an hour‘s drive from Cochin International Airport, Carnoustie Beach Resort is a sparkling jewel dotting the thread of the world-famous backwaters and beaches on the lap of lush tropical greenery in ‘God’s Own Country’, Kerala. In this heaven on earth, guests will find privacy, warmth, many moments of magic and the promise of utter contentment fulfilled during their stay.

Sustainable design
The resort has 40 villas that are separate worlds within themselves, and inside you’ll find every one secluded, serviced and equipped with every facility you would expect from a five-star environment. The premium villas reflect the charming theme of frangipani that pervades the resort and has its own rain-shower, jacuzzi, bathtub and a private pool. While they offer an inimitable venue for rejuvenating your romance, the mid-range villas with their large-format bedrooms and classic bath tubs also make for a perfect family rendezvous. The entry-level villas, with their lily pools, offer not only the perfect embodiment of luxury, but a surprise garnishing of great value as well.

The design of the villas is a perfect fusion of contemporary and traditional Keralan architecture spread across 27 acres of beachfront land. The natural features, including a winding stream, as well as fauna, have been retained so as to keep the local eco-flavour. An intriguing use of weft bamboo amidst the local warp of palm, thatched leaves and wood add to the natural, indigenous luxury of the resort too.

In a breathtaking expression of contemporary and sustainable design, and in continuity with its natural surroundings, subtly infused with the essence of the tropics, each Villa is an exquisite example of space and privacy in perfect harmony. Under their lofty ceilings, the villas feature widescreen LED TVs with surround-sound systems, BOSE iPod docking stations, broadband internet access, and as always, the dedicated services of a villa host to take care of your every whim.

‘God’s own country’
As you move seamlessly from one living area to the next, you will encounter the traditional spirit of the Kerala and its people; a destination that through bespoke activities will become part of your personal journey. Kerala has emerged as one of India’s most acclaimed tourist destinations in the recent past. The World Travel and Tourism Council has selected Kerala as a ‘Partner State’, while National Geographic Traveller has named Kerala as one of the ‘ten paradises of the world’ and ‘50 must see destinations of a lifetime’.

In and around the resort, vast lagoons along the rice fields, dense tropical forest, hilly tea, coffee & rubber plantations, high-range fresh water lakes, national parks, spice gardens and some of the finest beaches of India complete the destination experience of Kerala. The world-famous Kerala Backwaters are a network of interconnected canals, rivers, lakes and inlets, a labyrinthine system formed by more than 900km of waterways across the state. At Carnoustie, you can enjoy an array of water sports and activities of your choice. Frolic in the back waters; try your hand at kayaking, canoeing, or take off on a backwater cruise, or a speedboat cruise.

Signature therapy
Aryavaidyasala at Carnoustie is a sanctuary of well-being. A verdant eco-friendly resort of sublime luxury and sheer elegance, this resort evokes a sense of style. Welcome to Carnoustie Aryavaidyasala; where centuries-old tradition ignites your senses and the all-compassing experience is designed to nurture and re-balance the body in times of change, pressure and stress. A collection of signature experiences combine ancient therapeutic rituals with modern-day research. The doctors and expert therapists at Carnoustie will guide you on a rejuvenating journey of wellness. Surrounded by tranquil waters, the Spa at Carnoustie provides the perfect space for your individualised, holistic journey.

During your stay and treatment, internationally and nationally certified trainers and experts of the highest calibre will work towards your everyday health with an abundance of wholesome energy for the body, mind and spirit. In this environment of wellness, discover how to balance, invigorate your daily lifestyle with new and unique approaches to health and longevity.

Eco-conservation
At Carnoustie Beach Resort, nature will be your constant companion. Be it the sun and sand of an unspoilt stretch of beach, an eco-friendly villa made of local thatch, or cuisine that draws from the local influences. The Carnoustie Resort is committed to the environment and has adopted a green policy using efficient energy conservation techniques, minimal lighting and recycled water for landscaping. The villas and the facilities are designed to reduce energy and water consumption with the use of exhaustible materials like Jute, Rattan Mats and wood. Carnoustie Beach Resort is a place of rejuvenation and rediscovery; where every desire is a whim to be indulged, and every possibility is a dream to be fulfilled.

Further information: +91 478 283 0400; info@carnoustieresorts.com; www.carnoustieresorts.com

Economical with the truth

Posted on by Ben Debski

As you read this, speculation is rife over whether or not Greece is about to become the first victim of the eurozone crisis, with no option but to leave the single currency. Results of the country’s recent general election show evidence of an angry public, defiant against austerity measures enforced by the European Central Bank to help the nation make attempts to repay their sizeable debts, with significant consequences for the troubled workforce. Should these measures not receive backing, there is fear that Greece will default on its debts and leave the eurozone for good.

These developments fall on the 10th anniversary of the single currency’s entry into circulation – making the next few months an even more poignant period for the currency. The concept of a single currency for a bloc of different nations with varying economic strengths and political landscapes has always had its doubters, particularly in the UK, and the worry is they could soon be proved right. With all this in mind, let’s take a brief look back at the first ten years of Europe’s single currency.

Since its introduction in 2002, the euro has been through peaks and troughs like any currency; however, today’s situation is more than just another blip in its otherwise steady life. The introduction of the single currency was seen as a great moment in a generation’s long effort to bring peace, democracy and shared prosperity to a once frequently war-torn continent. From the outset, critics have argued that the architects of the currency were swept up in the romance of the notion and thus chose to ignore the very obvious difficulties a shared currency would encounter. Warnings were issued from the beginning that Europe lacked the necessary institutions to make a common currency workable.

Sceptics were silenced when the original 11 nations were quick to replace their own national currencies and adopt the euro. The Deutsche mark, for instance, was expected to continue in parallel for quite some time; instead it practically vanished as soon as the markets opened. Despite the initial slump, things gradually improved for the euro year-on-year with it reaching its highest value against the dollar at $1.59 on July 14th 2008 and against the pound at 97.73p on December 31st 2008.

Once born, the euro steadily grew in importance with its share of foreign exchange reserves rising from nearly 18 percent in 1999 to 25 per cent in 2003. By the late 2000s some people were beginning to believe that it was perfectly conceivable that the euro could trade equally, or become more important than the US dollar.

Just as it seemed that things were on the up, the global financial crisis reared its ugly head and the eurozone entered its first official recession in the third quarter of 2008. None of us are strangers to the monumental impact that was felt across the globe. This was the first time that the existence of the euro came into question as troubled nations began discussing a return to individual currencies, and whether in fact this backward step was a realistic option.

As well as its many positives, the euro brought with it significant increases in living costs in all acceding nations. Overnight costs of fuel, rent, transport and food reached unprecedented levels in some countries, for example Cyprus. Teamed with the financial crisis, these increases bred nothing but resentment.

Despite only representing two percent of Europe’s total economy, Greece’s inability to pay its debts presents some risk to the stability of the currency. Across Spain, the general consensus throughout the population seems to be that they would like to abandon the use of the euro entirely, having suffered nothing but losses from the outset. As Germany struggles to control its workforce and France announces the election of François Hollande, a Socialist dubbed “economically illiterate” by many, it should come as no surprise that the stability of the currency is coming under increasing scrutiny.

With so much uncertainty, the debate on how the euro will come out of the current economic storm – and whether it was even a good idea in the first place – is commonplace around café tables across the Continent. Was it naïve to believe that having one central bank for so many diverse nations could actually be successful? As we ‘celebrate’ the first 10 years of the euro, you have to wonder what the next 10 years, let alone 10 months, have in store for it.

Charles Purdy is MD at Smart Currency Exchange

Luxury that means business

Posted on by Ben Debski

At the heart of the Kingdom of Saudi Arabia’s capital city is a palatial retreat waiting to be discovered. The Ritz-Carlton, Riyadh is a majestic and elegant oasis located within 52 acres of luxuriantly landscaped gardens, abundant water fountains, Chorisia trees, native palms and 600-year-old olive trees. Splendid amenities include more than six distinctive restaurants and lounges, a lavish Spa and unprecedented service that promises an unforgettable getaway.

The Grand Palace Hotel is situated next to the Diplomatic Quarter and adjacent to the King Abdul Aziz International Convention Centre. It is also conveniently located approximately 30 minutes from King Khalid International Airport and just 10 minutes away from the city centre and major shopping malls.

The architecture, interior design, landscaping and accessories fuse to create a marriage of style and sense of place within the Middle East. All guestrooms and suites are elegantly styled using the vibrant colours and ethnic textures of the region, with subtle touches reflecting the Kingdom’s Arabic heritage. The 493 rooms and suites include 49 exquisitely appointed two-bedroom Royal Suites, each generously measuring more than 425sq m (4,574sq ft).

The Ritz-Carlton Riyadh presents one of the most luxurious suites in the kingdom of Saudi Arabia with the exceptional service and attention to detail that The Ritz-Carlton is world-famous for providing. With Jewel-toned Amethyst, Amber, Royal Blue or Emerald schemes, guests can look forward to getting comfortable in relaxed elegance, while still enjoying the familiar level of intuitive and personalised service one always associates with The Ritz-Carlton.

Lavish suites
The spacious suites offer indulgent luxury and refined comfort, with divided living and sleeping rooms, each suite features a separate office with working station and dining room that can accommodate up to 14 guests and complimentary Aqua Di Parma. amenities along with a variety of new additions including iPod dock, high-speed internet for seamless gaming sessions, luxurious airport transfers, in-room breakfast and a butler service can be made available upon request.

The Ritz-Carlton, Riyadh has 50 one-bedroom, opulent Executive Club Suites measuring 100sq m (1,022sq ft,) ideal for senior corporate titans and political delegates. Executive Club Suite guests also benefit from luxurious airport transfers and the Club lavish experience with five-food presentations and an extensive beverage menu throughout the day.

The Club Lounge access is only available to the Club Room and Executive Club Suite Guests, which ensures a sense of intimacy and privacy. Moreover, The Ritz-Carlton, Riyadh Executive Club Suite package is offered throughout the year and guests can enjoy their stay for two nights with a complimentary third night and late checkout.

Special events
Already host to several weddings even before the hotel opened, the conference and catering team at The Ritz-Carlton, Riyadh is set to accommodate the largest of international summits and social gala events.  The hotel offers more than 5,800sq m (62,000sq ft) of conference space combined, including two colossal ballrooms in a separate wing that are both identical in size at 1,970 sq m or 21,000sq ft each. They are complemented by two vast auditorium-styled theatres with stepped floors and built-in stages, perfect for press conferences and symposium lectures, and a generous variety of smaller meeting rooms. Completing the conference area is the Aubergine restaurant, which caters exclusively for the invited delegates, journalists and accompanying security personnel.

Bridal experience
Modelled on traditional palaces and elegant Arabian residences, The Ritz-Carlton, Riyadh provides stunning scenery as the backdrop for your special day. The dedicated Catering and Conference Services team of The Ritz-Carlton, Riyadh will grant the bride an uncompromising and legendary Ritz-Carlton service in exquisite settings that will satisfy her every desire and help the happy couple to begin their married life knowing that their wedding was a perfect start to their new life together.

Located in a separate wing of the hotel, with a massive sharing foyer perfect for an elegant reception are the two enormous ballrooms; The Ritz-Carlton A&B. The two ballrooms are identical in size but differ in their colour schemes. A variety of royal blue and dreamy pink colours give the bride preference to choose with her wedding planner whatever suites her style and taste. The two ballrooms also have huge chandeliers made of sparkling crystal and elegantly tailored carpets that are specially designed to match each ballroom.

The couple will also be granted a complimentary night’s stay at one of The Ritz-Carlton, Riyadh’s 49 lavish and exquisitely appointed two-bedroom Royal Suites for their first night in addition to an access to a 520sq m (5,600sq ft) Bridal Suite on the day of the wedding. The Bridal Suite specially designed to ensure a sense of privacy and comfort for the bride and her friends and family. It consists of two bedrooms with a spacious dressing area, separate make-up room, and a very comfortable living area. Moreover a special room rate will be offered to invitees and families should they require to stay at The Ritz-Carlton, Riyadh during the wedding day.

Gourmet dining
As befitting a hotel of such imperial stature, guests are offered a selection of gourmet dining venues, including Al Orjouan; the signature all-day dining buffet restaurant featuring Lebanese favourites, and Turquoise; the cigar lounge that will be home to one of the widest selection of Cuban cigars in Saudi Arabia. Presenting an alfresco option is Chorisia Lounge for leisurely breakfasts, lunch or its signature afternoon tea, while Strike offers a fun and stimulating atmosphere for mocktails and smoothies within the 1,000sq m indoor six-lane bowling alley.

Flanking the stunning indoor swimming pool on the ground level, which features garden views from the floor-to-ceiling windows, is Hong; an inspiring contemporary Chinese restaurant. There’s also the Azzurro Italian restaurant that serves authentic delicious cuisine from the old country.

The Ritz-Carlton, Riyadh culinary team will indulge guests with exceptional daily presentations in The Club Lounge; a unique and exclusive retreat for business and leisure travellers where the daily American breakfast starts from 6:30 am, followed by midday snacks. While relaxing, reading or meeting friends guests can  also enjoy Hors d’oeuvres and cocktails starting from 5 pm.

Award-winning service
Since opening, The Ritz-Carlton, Riyadh has numerous accolades for its quality service. These include ‘World’s Leading Palace Hotel’ in the World Travel Awards, 2011 which were held in Doha, Qatar; ‘Saudi Arabia’s Leading Business Hotel’ and ‘Saudi Arabia’s Leading Luxury Hotel’ by the World Travel Awards held in Dubai, 2012. The hotel was also presented with the Gold Awards ‘Best New Five-Star Hotel, 2011’ and ‘Best Conference & Convention Hotel, 2011, at the MENA Travel Awards. Most recently, the hotel won the accolade of ‘Best Luxury Hotel, Saudi Arabia, 2012’, in the Business Destinations Travel Awards.

“It is a remarkable achievement to receive such a valuable awards,” says Jean-Francois Laurent, General Manager of The Ritz-Carlton, Riyadh. “I present these awards to our ladies and gentlemen who have shown exemplary efforts and dedication during the crucial time of opening our hotel”, he added.

Further information: www.facebook.com/RitzCarltonRiyadh; www.ritzcarlton.com

The belle of Doha

Posted on by Ben Debski

Conveniently located with easy access to Doha International Airport, Doha Port, the city centre, Doha Golf Course and other leisure facilities, this premier four-star hotel includes 242 spacious hotel rooms and residential apartments. Guest rooms at Swiss-Belhotel Doha are the perfect sanctuary to wind down after a long day of business or the various attractions and activities offered by Doha city. Boasting style, comfort, space and convenience, the twin buildings of Swiss-Belhotel Doha offer not only city accommodation, but are now focusing on growing and expanding food and beverage operations.

Operated by experienced international management company, Swiss-Belhotel International, the property builds on the reputation and high standards of the group. The property offers stylish and comfortable design and luxuriously spacious rooms with floor-to-ceiling windows overlooking Doha’s skyline. Guest rooms in Swiss-Belhotel Doha are the perfect sanctuary to wind down after a long day of business or various attractions and activities offered by Doha city.

With the availability of a state-of-the-art fitness centre, high-speed internet connectivity in all areas of the hotel, and various meeting and banquet facilities, Swiss-Belhotel Doha proves that it is well placed to be of convenience to all guests – this property is determined to go the extra mile.

The bouquet of packages and promotions offered by Swiss-Belhotel Doha guarantee guests even more comfort, luxury and convenience. Benefits range from complimentary early check-in and late check-out, guaranteed upgrades, free accommodation, dining for children and complimentary nights. All of this makes Swiss-Belhotel Doha a top pick for long or short stay, business or leisure travellers alike.

Food for thought
Building on this strength and reputation, the hotel is undertaking the next phase of its growth with the enhancement of the dining experience. Maxill Restaurant was the first, with a focus on service and quality through the introduction of a new buffet, providing a sumptuous feast to cater for all the senses. While guests savour delicious flavours on their pallets, they will also feast on the sight and aromas of the chef’s preparations in the open kitchen – all while surrounded by the earthy décor of the restaurant. Never to be outdone, the hotel’s banquet facilities have received a modest makeover to complement the needs of the growing hotel client list.

Mezzo is the Swiss Belhotel Doha’s martini lounge-style venue, which since opening has been met with pleasing reviews. Shortly after opening the hotel, it was identified that there was demand for a venue of this kind, and Mezzo was subsequently opened for both hotel guests and residents to enjoy.

Most recently, in April 2012, the hotel introduced sumptuous and modern Japanese flavours with Yuzu, a stylish new Teppanyaki and sushi restaurant. Offering an array of mouth watering seafood dishes with a twist, Yuzu is situated on the penthouse level of Swiss-Belhotel, offering an impressive view of Doha which diners can enjoy with family and friends in sleek and contemporary surroundings.

Commenting on the opening of Yuzu, Makram Najjar, general manager, Swiss-Belhotel said: “After much hard work, I am pleased to introduce our new brand, Yuzu. The concept here is to give guests the chance to tailor-make their meal depending on their tastes, creating the ultimate dining experience…With the unveiling of Yuzu and the planned future upgrades over the coming months, Swiss-Belhotel Doha is reinforcing its commitments to deliver the best facilities and service to our local and overseas guests,” Najjar concluded.

From appetisers to desserts, the Yuzu menu showcases mouth watering dishes, all of which embody the spirit of true Japanese flavours. Yuzu specialises in creative dining options such as Moriawase sushi, the resident chef’s fresh daily selection of sushi and sashimi or the Samurai Teppanyaki, with a complete seafood experience of prawns, salmon, fish and scallops. The kitchen team is led by head chef, Chef Noel, who boasts over 21 years Japanese and Pan-Asian cooking experience.

Perfect gatherings
The newest edition to the Swiss Belhotel Doha complex is ‘Windows’; Doha’s newest bar and club, which offers a wide range of great entertainment, beverages and refreshments – all whilst overlooking the amazing skyline from the Penthouse floor. Plus, if you’re looking for a great place to hold a party, corporate event or any other celebration, then the hotel can help.

Windows consists of two unique areas and guests can relax in the lounge area whilst having a drink from the bar and enjoying the wide selection of food items from the menu. Guests can also dance the night away to the latest tunes from the resident DJ and live entertainment of music from across the world. Windows is also the perfect venue for groups up to 100 people for a memorable celebration or just a fun night out on the town.

About Swiss-Belhotel International
Swiss-Belhotel International is a rapidly expanding international management company with over 60 hotels, resorts and projects globally. Founded in 1987 and headquartered in Hong Kong (SAR), Swiss-Belhotel International manages hotels in Asia/Pacific and the Middle East including China, Vietnam, Malaysia, Indonesia, Australia, Kuwait, Oman Qatar and Iraq. Ranked in the top 100 international hotel management companies, Swiss-Belhotel International’s rapid expansion will see substantial growth in the Middle East as well as focus on growth in China.

Further information: +974 4407 8888; ressbdh@swiss-belhotel.com; www.swiss-belhotel.com

Shaping up

Posted on by Ben Debski

Hong Kong is a fantastic place to do business, and if it hasn’t already cropped up in your travel plans, it no doubt will do so in the future. Make sure you get to see the best of this magnificent city with a duo of hotels that are not only centrally located and extremely well connected, but offer some of China’s finest hospitality services.

Hotel Panorama by Rhombus – your personal view of Hong Kong
Hotel Panorama by Rhombus, with its distinctive triangular architecture, is the tallest deluxe business hotel overlooking Victoria Harbour in Tsim Sha Tsui, superbly located in one of Hong Kong’s most popular shopping and business hubs.

Hotel Panorama by Rhombus is just a two-minute walk from MTR East Tsim Sha Tsui Station, only a stop to MTR Hung Hom Station and a five-minute drive to Hong Kong China Ferry Terminal, which has convenient access to Macau and Mainland China. It was named one of the ‘Top 10 Business Hotels of China’ at the 7th China Hotel Starlight Awards 2011, ‘The Best Business Hotel in Guangdong Hong Kong Macau’ by Let’s Go magazine for the third consecutive year (2009-2011) and one of the ‘Best Business Hotels in China’ at the China Hotel Forum (2008-2011).

Club Harbour View Rooms, Executive Club Harbour View Rooms and Executive Club Harbour View Suites are fully endowed with personalised services tailored for business travellers, with all rooms offering breathtaking panoramic harbour views. Club Floor guests can enjoy special privileges and access to the Rhombus Club Executive Lounge located on the 39th floor. Other facilities include the breathtaking Sky Garden, Business Centre, Fitness Centre and Café Express.

Located on the 38th floor, with stunning 270° Victoria Harbour views, is AVA Restaurant Slash Bar, named ‘Best Restaurant’ at Dining City’s Hong Kong Restaurant Week 2012 and one of the ‘Best Restaurants in Hong Kong & Macau’ by Asia Tatler, 2012. Experience AVA’s impressive modern international cuisine, created by a talented young culinary team, and savour the international wine list, champagnes and creative cocktails prepared by expert mixologists. www.hotelpanorama.com.hk

Hotel LKF by Rhombus – sparkling vibrance, immaculate style
With its dramatic décor and luxury design, Hotel LKF by Rhombus is a deluxe boutique hotel truly located in the heart of Lan Kwai Fong, Central. It has been delighting international jetsetters with its five-star personalised service and ultra-comfortable guestrooms for years.

Hotel LKF by Rhombus allows you to access all parts of Hong Kong via Mass Transit Railway (MTR), Airport Express, buses, taxis, trams and ferries, and Hong Kong’s trendiest area is abuzz with restaurants, bars, fashion boutiques, art galleries and antique shops. It is a recipient of ‘Trendiest Hotel in China’ award by TripAdvisor’s Travellers’ Choice Awards 2012, ‘5 Stars Best Hotel Hong Kong’ award in the category of ‘Best Hotel’ at the Asia Pacific Hotel Awards 2011, ‘Best Boutique Hotel in Asia Pacific’ by Business Traveller (Asia-Pacific) Awards 2009, ‘Best Boutique Hotel’ by the 20th TTG Asia Travel Awards 2009 and the ‘Best Business Hotel’ by China Best Design Hotels Award 2009.
Hotel LKF by Rhombus presents its Fitness Centre and Business Centre on the lobby level. The Fitness Centre features state-of-the-art equipment including shower facilities whilst the Business Centre is equipped with a comprehensive range of business services for the discerning business traveller – both providing 24-hour service to guests.

Located on the 29th and 30th floors of the hotel, with a sweeping view of the vibrant city skyline, and the sizzling energy of Hong Kong’s premier nightspots at your feet, is Azure Restaurant Slash Bar, which has been consistently recognised as one of the ‘Best Restaurants in Hong Kong & Macau’ by Asia Tatler (2008-2012) and ranked No. 7 in ‘The World’s 20 Best Sky Bars 2008’ by The Sunday Times, UK. www.hotel-LKF.com.hk

Rhombus International Hotels Group also manages Hotel de EDGE by Rhombus and Hotel Bonaparte by Rhombus in Hong Kong, in addition to Rhombus Fantasia Chengdu Hotel in Mainland China and Hotel Verta by Rhombus in London, England.

Further information: www.rhombusinternational.com

Asia’s focal point

Posted on by Ben Debski

As one of the most significant meeting venues in the Asia-Pacific region, Putrajaya International Convention Centre (PICC) is launching its reputation as a premier destination on the global stage. Since throwing open its doors to the public about nine years ago, PICC has continued to attract high-level international conferences. From playing host to only eight events in 2003, more than 2,500 events have been held at PICC up to the present day. Below are just a few of the many reasons that have made and continue to make the PICC a resounding international success.

A culture of hospitality
Serving guests and making sure that their needs are well taken care of are inherent characteristics that exude naturally from the people in Malaysia. With its charming disposition, PICC was designed on the premise that everyone who uses the facilities will feel very much at home. Rising majestically on Putrajaya’s highest point and commanding a panoramic view of the entire Putrajaya Precincts, PICC straddles the peak to ensure that the safety and security of its guests is paramount.

Architecture & design
Standing as if ready to fly, the curvilinear building is designed to combine the traditional shape and concept of the ‘wau’, an ancient kite, and the silver royal belt buckle. The main halls are set underneath the bejeweled ‘eye’ of the buckle – and the idea of ‘buckling-up’ is synonymous with having a win-win conclusion. Hence PICC’s tagline; ‘Where Great Minds Meet’, was born.

With Malaysia’s rich cultural heritage, guests are able to marvel at the designs of the building and the interior of the conference rooms, which are adorned with the beauty of the flora and fauna of the country. Also, the arts and crafts of its indigenous people such as the ‘songket’ (hand woven silk brocade fabric) and the ‘mengkuang’ basket’s designs are used as decorations for walls and carpets.

Events facilities
PICC has a proven suitability for mega events. It has an impressive gross floor area of 135,000sq m over seven floors. There are 10 conference halls, 33 meeting rooms, 13 secure VIP rooms and a VVIP lounge.  The Plenary Hall is the largest hall in PICC, with over 4,123sq m that can accommodate up to 2,800 people. It is supplemented by two royal boxes, two public viewing galleries and eight interpreter rooms operating 32 channels. Entering from the lower level is the pillar-free banquet hall which can accommodate up to 3,000 people in a banquet-style sitting arrangement.

The grand interior of the Heads of State Hall incorporates a circular seating arrangement for 180 people within its 518sq m of meeting space. The seating arrangement can accommodate 59 Heads of State and 121 advisors. Rooms for note-takers and bodyguards are located above the meeting space. The hall also incorporates eight interpreter rooms and two en-suite restrooms.

Modern technology
Communication and interaction is also made effortless with PICC’s cutting-edge information and communications technology (ICT) facilities. These include information kiosks and wireless LAN; wireless simultaneous interpretation system; provision for live television broadcast and coverage; holographic rear projection system; facilities, events and maintenance management system; video-conferencing system; video and billboard messaging system, and plasma display/LCD.

With a commitment to providing the best service and facilities for customer satisfaction, PICC’s Audio Visual Department installed two new Barco projectors in 2011. These allow clients to enjoy the privileges of a widescreen display, high-contrast images and superior quality – even in venues with lots of ambient light.

Great location, green ethos
From its majestic position overlooking the administrative capital of Malaysia, PICC is located just 20 minute’s drive from the prestigious Kuala Lumpur International Airport (KLIA). With access to a modern expressway, Kuala Lumpur city centre can also be reached within 20 minutes by boarding a high-speed train, or by taxi in less than 30 minutes. With the cooperation of airlines and hotel chains, PICC management has ensured a plentiful room supply, relatively inexpensive rates and good discounts on package deals.

PICC is an eco-friendly and energy-efficient building and was the first convention centre to be awarded the Energy Efficiency and Conservation Best Practices Award by Asean in 2007. Being located in Putrajaya, the administrative centre for the Federal Government of Malaysia, it covers an area of 4,932 hectares and the architecture of the buildings epitomises a vision of modern Malaysia. The centre-piece of Putrajaya and the single prevailing element which holds the city together is its 650-hectare man-made lake and wetlands. Guests and delegates arriving into PICC can take advantage of Putrajaya’s natural landscape to plan their leisure activities.

Nearby is some of the highest-quality accommodation in Malaysia. Opposite the centre is the city’s latest upscale hotel – Pullman Putrajaya Lakeside offers five-star rooms with its beautiful scenery and ambience along the Putrajaya Lake. The 188-room Putrajaya Shangri-La offers an exclusive level of service. The Marriott Putrajaya is better suited to larger groups with its 480-plus rooms. Farther afield are four-and five-star rooms in Cyberjaya and at the KLIA.

With improved consultation and developing connections with the wider industry, PICC’s position on the global stage seems assured. By just about any yardstick an events planner could use, PICC always measures up well against the global competition.

Further information: 603 8887 6000; enquiry@picc.gov.my; www.picc.gov.my