Author: Ben Debski

Bargain basements

Posted on by Ben Debski

The unprecedented price drops in property in a number of countries, noticeably Spain, Portugal and the US, have attracted buyers who could not afford to buy abroad before the downturn, or simply were put off by the prices. In addition, as other forms of investment have become less attractive in terms of return on investment and risk, people have considered investing in something that not only offers a potential long-term capital gain but which they can also get pleasure from.

Quite apart from value, the other factor that drives a decision to purchase property abroad is quality of life, with good weather and cost of living also ranking high on the list. Here parts of the USA fit the bill remarkably well and a new statistical report confirms the USA as recording the highest level of growth in terms of enquiries made to The Overseas Guides Company during 2011. The most popular states looked at by potential buyers include Florida, California, Texas, New York and New Jersey.

Add to this the fact that 30-year fixed-rate mortgages are currently being offered at an all-time low rate of around three percent in the USA, and it becomes hard to resist it as a property investment destination. When you consider that a house that cost $200,000 five years ago in America can now be bought for $150,000 or in some cases even less, it’s not hard to see why.

Pursuing the sun, many investors and purchasers from abroad are vying with Spaniards to buy good quality property in the most sought-after areas of sunny Spain, which generally means close to the sea. However, according to industry sources, Murcia was one of the most searched for locations for Spanish property in August 2011 with La Manga, Cartagena and Mar Menor being the areas with the most interest. Upmarket golf resorts throughout the country, many being in Murcia, are also proving popular as they have the added advantage of built-in security and come with excellent facilities such as swimming pools, tennis courts and restaurants.

Last year the outgoing Spanish government halved IVA (VAT) on the purchase of new homes to just four percent – this is a significant saving on any property purchase. However, although prices having fallen, sometimes quite dramatically, and Spain’s new government is continuing the reduction for now, many realise that this may be short-term reprieve and the time to buy may well be now.

And then France beckons from across the Channel. Property prices have been fairly stable over the last year but some French banks are forecasting a fall of up to five percent for 2012, which may well encourage interest. There is a widely held view that asking prices in France have been over-inflated for several years and many agents are urging sellers to be more realistic in terms of property valuation. This means that there are likely to be some first-class bargains in many parts of the country. This, coupled with the fact that President Sarkozy has dropped his proposed property tax on second home-owners, means buying in France continues to be an attractive proposition.

The FNAIM, the largest body representing estate agents in France, reports a mixed bag of prices over the last year with some areas such as Brittany having a distinct fall in prices and others such as the Languedoc Roussillon and Champagne showing an increase. Areas currently offering great value for money include Alsace Lorraine, Burgundy, the Auvergne and the Limousin. For those wanting to be sure of maximum sunshine, the Languedoc Roussillon offers a great deal in terms of lifestyle with a Mediterranean climate, proximity to the sea and Spain, and much lower property prices than its neighbouring Provence.

For British home-owners moving abroad on a permanent basis there is the added incentive of the extra buying power that equity from a house sale in the UK would offer them abroad, where often like-for-like house prices remain cheaper than the UK.

Overall, 2012 is the year to watch. Reasonably priced property worldwide may mean that this is the year to buy and then to watch your investment soar as confidence returns to the property market.

Richard Way is editor of The Overseas Guides Company , Telephone: 0207 898 0549
www.overseasguidescompany.com

Out of the frying pan…

Posted on by Ben Debski

Odd as it may seem to some, there are those who still yearn be a part of the EU. Croatia has just proven it. The country is now scheduled to become the EU’s twenty-eighth member state after its citizens endorsed EU accession on January 22; and it matters little that it was the lowest turnout for an EU accession referendum in history. In spite of only 43.65 percent of all eligible voters casting their ballots, the Croats showed their half-hearted support with a two-to-one margin.

The EU’s changing face
EU membership was once perceived the certain road to wealth and prosperity. Nevertheless, its repute is now blemished for having been unable to come to grips with the sovereign debt crisis that has engulfed numerous of its 17 euro-implementing members.

Yet, the EU’s model of interstate collaboration, the principle of camaraderie, the achievements of the European peace project, and the single market, still wield the power of attraction to outsiders.

But as the lacklustre accession referendum has shown, even Croatia’s once boiling enthusiasm to join the union has ebbed significantly. Croatia’s 4.5 million people may fear that after 20 years of rebuilding their war-devastated economy, they will get unavoidably drawn into the EU’s financial problems, and even require bailing out its southern neighbours. But Prime Minister Zoran Milanovic summed the country’s sentiment up with one sentence recently, saying: “The situation is not great but Croatia has no better option than the EU now.”

Stringent adjustments for accession
The feeling of success cannot be shaken off, however. After a seven year process of integration, Zagreb at last attained what it had been working extremely hard for – the end of deliberations, a signature under its accession treaty, and the support of its people. In order to become a member of the club, Croatia had to follow the criteria established under Copenhagen, which was expressly set up for the former Yugoslav republics.

Several regulatory and socio-economic changes had to be made and Croatia was subjected to stringent procedures to implement a full range of reforms in numerous areas. These included more transparency in political financing and public procurement, and a stronger anti-corruption law and welfare system. The EU also requested the privatisation of its shipyards in compliance with Europe’s competition rules. Moreover, the telecoms sector also had to be transformed through market liberalisation. Among others this meant that the nation’s leading provider of telecommunications services, T-Hrvatski Telecom, became majority owned by German group Deutsche Telekom.  Privatisations are likely to continue as Croatia remains under an EU monitoring scheme until its full membership commences in July 2013.

A tough path
But accession to the EU carries important implications for Croatia, a country for which the memories of the four-year war and the economic repercussions are still very much alive and well. Many believe that unless Croatia manages to clean its socio-economic affairs before its membership next year, another limping economy will attach its heavy burdens to the EU and further aggravate the bloc’s existing issues. For the EU, which is already under financial duress, this would simply spell an added debt burden, a heavier load for EU taxpayers and a higher risk of sovereign loan defaults- Something the union cannot afford as it has shown over the past two years.

Meanwhile, Croatia is simultaneously struggling to clamber out of the recession brought on by the same calamity. The country presently relies on its strong tourism revenues which helped support economic growth in Croatia in the final two quarters of last year. But this is not likely to save Croatia’s economic problems according to the country’s central bank governor Zeljko Rohatinski, who insists that Croatia needs to cut its expenditure by around €1.2bn if it is to avoid another credit rating drop and to ensure economic growth in the near future.

Even Fitch ratings recently singled out the BBB- nation for being a risky economy for several reasons. According to the agency, Italian parent banks account for almost 48 percent of Croatia’s entire banking assets. This makes the country’s exposure the highest of any CEE banking market to a single ownership base. In addition, Fitch pointed out that Croatia has the CEE’s highest exposure to foreign credit risks, with cross border claims on its economy totalling around 52 percent of GDP. Italy remains meanwhile a significant trading partner for Croatia, while Italian banks Intesa SanPaolo and UniCredit are in control of the country’s two biggest banks and jointly make up almost 50 percent of bank assets.

Many believe that the Croatia’s subsidiary banks could see their asset quality depreciate should Europe’s debt fallout affect Italian banks. But problems are also emerging in the telecoms sector, with companies such as T-Hrvatski Telekom announcing redundancies as early as the first quarter of this year.

Croatia, after seven years of trying to play with the big boys, has at last reached its goal. It is clear that it perceives the EU as a long-term investment and hopes it will turn things around so Croatia can surface a winner in the long run. To some Croatia is already a winner as it will not have to join the euro until 2016.

Meanwhile, considering the hardship the EU is currently facing, Croatia’s yes vote comes as a great comfort. A “no” vote would have implied a glaring failure for the Union and would have also been catastrophic for the accession plans of other nations within the region.

There is no doubt that the EU is currently dealing with the toughest challenge since its inception; it is itself fighting for survival. But, although this enlargement has come at the wrong time in terms of financial sustainability, the timing could not be better for providing the EU with the much-needed confidence boost.

Red letter day

Posted on by Ben Debski

At the start of the century, China finds itself in the centre of a socio-economic transition, with entrepreneurs all over the world trying to discover its vast market for business opportunities. But those hoping to pick the juiciest fruits of the world’s fastest-growing economy must bear in mind that conducting business in China is altogether rather different. The Chinese business culture is worlds apart from the West. It therefore comes as no surprise that methods used to land deals elsewhere need to be fully reassessed before approaching a Chinese business partner.

But China has been changing. The old iron fist methods under Mao Tse-tung have long been substituted with the more liberal strategies of his transforming successor, Deng Xiaoping and the leaders who followed. Luckily for the progress of the nation, the quest for profitability is no longer considered to be counter-revolutionary. Yet, in a country where commerce was outlawed for over three decades it is difficult to determine which kind of business rules pertain for the new China.

In order to deal with this effectively the Chinese have reverted to their customary cultural rules which are firmly rooted in time-honoured Confucian values. The conventional Chinese world views are then softened by incorporating contemporary business structures and methods into the Confucian way of life and business etiquette.

Confucian philosophy in business
The lives and business dealings of the Chinese are steered by the philosophical and ethical teachings of Confucius. This philosophy places relationships at its centre and reminds people that specific duties arise in transactions with others. Contrary to teachings in the west, in Confucianism all relationships are judged to be unequal. Attaining and preserving social harmony is the ultimate goal and knowing one’s place in the social order is an essential principle in Chinese business etiquette. In fact, many Chinese believe that lack of adherence to hierarchical morals is the source of all evil befalling the west. Hierarchy steers commerce in Chinese relations, and those seeking to establish closer business links with Chinese trade partners should be fully aware of the important role it plays.

Social structure and relationships, or guanxi, are key to good business relations and one of the most prevailing forces in Chinese culture. Those conducting business in China need to comprehend the mutual nature of guanxi as it will make the relationship-building process easier to appreciate. The significance of this should not be underestimated as Chinese will not enter into business with somebody unless they have established a guanxi with them first. Once it is firmly in place both parties know they can implicitly rely on each other for help and favours as they are then in each other’s debt.

For those striving to function within a state that bases its principles on a history established thousands of years ago it is essential to develop insight into its business culture and social etiquette. This will help to circumvent misinterpretations that could potentially ruin the prospect of establishing long-lasting business relationships.

The etiquette of business meetings
But how can a westerner utilise Confucius’ teachings to benefit his or her ambitious search for a productive business partnership with a Chinese national? Well, to have any chance of success there is of course the prerequisite of being familiar with the Chinese language, Mandarin, as it would be unfeasible to commence any form of trade without the prior knowledge of the language. In any case a fluent translator is required.

Before setting off to a business meeting it is of paramount importance to be aware that in China business people often base the entire deal on their personal relationship with their counterpart. Hence, the more personal information, such as hobbies, family life, and other social interests are shared, the more likely the deal will be a success. Peculiar as this may sound, this is because in China business relations have a more personal character and often turn into social relationships.

In many cases the actual business will become secondary as the various parties spend time getting to know each other. It would be even perfectly tolerable to delay a contract if it meant more social time to get to know the other side. To the Chinese a meeting would be more about fostering the relationship rather than taking crucial business decisions. If anything, the decision-making progression is leisurely at best. This may be contrary to the way business is conducted elsewhere in the world, but patience with the Chinese method will earn a westerner a lot of esteem.

Showing respect and maintaining ones reputation and ‘face’, or mianzi, is another fundamental of the Confucian teachings.  It is worth pondering over this aspect as the Chinese will do anything to ‘save face’ and to preserve their standing in society, even if it means sacrificing their job. This means choosing words carefully to describe the other party, especially in public, is very important.

Timekeeping in China is considered a virtue. It is therefore vital to be aware that a late arrival to a meeting is unacceptable and will be perceived as a serious insult to the Chinese. Such disrespect could potentially lead to the failure of the entire business proposal, especially if the company in question is a more traditional one and believes in Feng Shui. That being the case, it is not unheard of for a Chinese company to consult the stars for the most appropriate time and day to have the meeting. Should that meeting not take place at the scheduled time it could well be that the late comers will have to wait until the stars are right again. And that time may never come again. Even though this will only apply to the most extreme cases it is not unheard of. Ironically though, it should not come as a surprise that the Chinese business people themselves may » often choose to start a meeting late or end it at a different time to the one originally agreed on.

During the meeting
To greet business partners, a handshake is usually the norm in China. However, it tends to be a rather slight, limp and drawn-out version of the western equivalent. The Chinese consider direct eye contact ill-mannered and it is customary to look down as a mark of reverence when shaking hands.

Although the Chinese like to stand in close proximity to others the use of hand gestures in comparison to other cultures is very low-scale. This tranquil body language is often wrongly misinterpreted for indifference and lack of responsiveness. Despite the proximity, any form of touching is generally seen as a major faux pas, especially contact with anybody’s head.

Never has there been a nation which takes the exchange of business cards so seriously. It is so formal in fact, that there is a proper etiquette for exchanging them. Business cards should be double sided with one side in English and the other in Chinese. They will be exchanged at the start of the meeting and must be held with both hands with the Chinese part of the card facing the recipient. It is enormously impolite to place the card straight into a bag or a pocket without fully scrutinising it first.

Meanwhile, the exchange of gifts is an extremely old tradition and is endemic to Chinese culture. A mere ‘thank you’ for an act of kindness, which would be perfectly acceptable in the West, would be seen as bad-mannered in China. Chinese perceive the giving and receiving of offerings as an essential part of the ceremony of business relationship progress. Giving and receiving presents when creating relations is hence a tremendously vital business tool. However, westerners should pay attention to steer clear of pricey gifts as they could be misinterpreted as bribery, which in China is a severely punishable criminal offence. One must be sure to always wrap the gift and pay attention to the colour of the wrapping paper as light colours are normally associated with funerals. Red is the safest colour as it represents good luck.

If it is a company that is being called upon it is usually acceptable to take one present and hand to the entire group, but if it is for an individual within a group ensure the most senior one receives it. If unsure who that would be, remember that usually the first person to enter the meeting room will be the most respected and the one to please. It is also good to know that it is likely that the gift will be refused two or three times before being accepted and, if wrapped, hardly ever opened in front of the person who brought it.

All the way through the assembly it will become noticeable that the Chinese like to put an emphasis on concessions during business dialogues. While westerners are used to placing all terms clear on the table from the start, their eastern counterparts have a tendency to commence negotiations with modesty. This is a tactic that is applied to make them appear frailer and more vulnerable, which they believe allows for more dispensations from the other side. Direct confrontation over outstanding issues is frowned upon. This is because in the Chinese culture it is irrelevant whether truth needs to be spoken as it will never be more significant than the honour and respect that is due to the person one does business with.

Yet, the Chinese are perceived to be quite hard-hitting negotiators. In gatherings with potential partners they expect the other side to prove that they can compromise to find a middle ground. This is made even harder as the Chinese find it rather difficult to say “no” because to them this implies embarrassment. Therefore anything other than an unambiguous “yes” is likely to mean “no.” Signals that they are uncertain could include statements such as “yes, perhaps” and “yes, but it could be difficult”. Therefore, one should be prepared for long meetings and extremely lengthy negotiations with delays. At all costs it is advised for westerners to remain calm and show resilience to the eastern methods, yet again.

Regulation changes for foreign visitors
Meanwhile, in addition to the cultural and moral differences the international community travelling into China will soon have to face new visa rules as the country announced in December that it will introduce fingerprinting of foreign nationals who want to work or study in China.

Chinese legislators published the draft law on entry and exit procedures for visiting business people at the end of last year and are hoping to implement in due course. China’s National People’s Congress usually meets in spring to approve new legislation. That is where laws are amended but it is almost unheard-of for them to reject any legislation. The law will aid the ministry of foreign affairs and the ministry of public security to collect biological identification data on foreigners.

According to the vice minister of public security, Yang Huanming, said that fingerprinting and additional biometric information would be highly effective measures that can be used to accelerate arrivals and departures through immigration and customs. Yang believes the new law will become part of a reorganisation in integrating the momentarily disconnected ID rules for nationals and foreigners. According to the public security minister this method will facilitate exchanges while ensuring that “those who should not enter are kept out.”

Collective versus self
In summary what needs to be remembered above all is that in all dealings with Chinese business people the collectivist culture takes priority, with the greater good being placed before their own personal gain. In meetings there will be a huge emphasis on the whole company, the team and the entire group effort. Humility is seen as a virtue and boasting of one’s own, individual success will be frowned upon.

While western cultures are known to push for individualism, the Chinese are more prone to consider how their actions will affect the entire social structure, those around them including colleagues and the entity of the company rather than how they will be personally affected.

Being aware of the social and cultural differences and showing respect for them can take a western business person a long way in China. The same applies to paying attention to the little differences that really matter such as learning a few sentences of Mandarin in spite of the translator being ever-present.

One last piece of advice would be to think twice about using humour as an ice breaker as it may either result in some awkward silences, or loud hearty laughter because the translator informed the host that a joke has just been told.

Visiting business people should do their research on the country and the company and refrain from confusing Japanese food and culture with that of the Chinese. But above all, and regardless of what you have been told above, don’t ever assume that all Chinese do business the same way.

Conrad Cairo: Jewel of the Nile

Posted on by Ben Debski

Conrad is the hotel brand that gives you the luxury of being yourself, and the Conrad Cairo is no different; offering spectacular views of the river from its 617 elegantly designed guest rooms (inclusive of 52 suites). Here you will discover the luxury of being yourself in the exotic splendour of Egypt, otherwise known as the “Mother of the World”.

A team of exacting professional event planners, who live for the detail, will provide you with bespoke events and services to ensure complete success. Awarded by Business Traveler Middle East magazine as the best business hotel in Cairo, this luxury hotel offers majestic surroundings, unparalleled facilities and impeccable service. Located in a city where cultures come together, the Conrad Cairo is situated downtown, overlooking the Nile with easy access to local attractions including the Egyptian Museum, Citadel, the Great Pyramids of Giza and the Sphinx. It is also close to the business district and within walking distance of the Nile City shopping mall and cinemas. Whether you are holding a small meeting, an international conference or a lavish wedding, the Conrad Cairo is certainly the right venue to host your event.

Unique events
The expert events team creates different meeting packages for you to choose from, in one of the 12-multi-function meeting and banquet rooms which offer a wide variety of room types for any event planner. The Conrad ballroom of 882sq m, which can accommodate up to 1,200 guests, is the place for innovative yet glamorous events offering a luxury environment, harmonised with grandeur and flexibility and can be divided into three sections.

The elegant Nile ballroom, at 390sq m, can accommodate up to 300 guests and can also be divided into three sections. Both rooms offer a large foyer area for pre-event gatherings or breaks outside of the main meeting room. The Salon Diplomat is a unique 352 sq m function room featuring a built-in stage for banqueting or meeting events. We will also be happy to host your smaller executive meetings, in one of our nine elegant boardrooms that are fully equipped with the latest audio visual equipment.

Pamper yourself during your business trip and enjoy our health club that features a fully equipped gymnasium, a heated pool, sauna, steam and massage rooms for the ultimate in relaxation. For an outstanding dining experience, Solana is an all-day dining restaurant, offering delicious breakfast, lunch and dinner buffets as well as an extensive à la carte menu, while the Kamala Asian restaurant and bar also offers a superb à la carte menu inspired by South East Asia. Oak Grill serves the finest roasted and grilled meat and seafood dishes. Also, if you want to crave the b uzz of Cairo’s nightlife there’s no need to leave the hotel; the Casino, Jayda Bar and the Stage One Lounge and Bar stay open until the early hours and offer all the excitement of Cairo without any of the stress.

For information please contact:
Raghda Usama, Co-ordinator, Public Relations & Communications
Conrad Cairo Hotel
Tel: +202 2580 8103; Fax: +202 2580 8000; raghda.usama@conradhotels.com
www.conradcairo.com

The changing face of luxury travel

Posted on by Ben Debski

Since I entered the travel industry 50 years ago, while everything has changed, everything has, to a certain extent, stayed the same. People still want to go away and be able to boast about their holiday but they want more luxury with a better understanding of the destination.

The average luxury traveller is now better educated and more aware of the Green Movement and that is impacting on the market, with more partnerships being formed that benefit local communities. What has become apparent is that the successful luxury products and brands are those that are able not just to evolve but stay one step ahead of the pack.

Companies have to remember that what was a bespoke experience three years ago is now run-of-the-mill for manytravellers. I think problems arise when companies are led by accountants rather than explorers. Abercrombie & Kent’s ethos from the beginning has been to give every customer not just a holiday but a unique experience and I still travel 300 days a year looking for new ways to excite our clients.

Many of today’s sophisticated travellers routinely travel by private jet or first class for business and don’t have the time to research and plan their vacations. They expect someone else to take responsibility for their trips, and to deliver the wow factor.
To this end we set up Private Travel at Harrods and are now looking to expand this idea and set up travel advisers in high end hotels and retail outlets around the world. This makes meeting the travel expert even more convenient for clients.

Preferences are changing as well. Over the past year we have seen a slight shifting of the holiday focus. Rather than clients taking two or three holidays a year, with and without the children they are now clearing their diaries for multi-generational travel. Usually this coincides with a landmark birthday or anniversary.

In my work as Chairman of the World Travel and Tourism Council, I see what an important economic role the travel industry plays as an international economic driver. More than 235 million people worldwide are employed in Travel and Tourism, which represents 8.2 percent of all employment and 9.4 percent of world GDP.

Some of the biggest changes we are seeing this year are the result of the emergence of the BRIC countries – Brazil, Russia, India and China. Their governments recognise the essential role that tourism can play in developing their economies. China has made travel and tourism a strategic pillar of their economy with major investments in infrastructure that are expected to generate long-term and sustainable returns, along with increased employment. At the same time, the growing number of educated professionals in each country is fuelling interest in travel abroad.

And they are changing the face of luxury travel. The Brazilians love adventure and want elegance and style. They like to travel in big family groups so villas are perfect for them. Russian travellers like luxury but demand high-end concierge services, like private store openings, while Indians are very keen to experience all aspects of what European capitals have to offer.

These groups are all fairly easy to cater for, whereas the Chinese market presents more of a challenge as they expect Mandarin-speaking guides and a trip completely customised for their requirements. This may include having top-quality Chinese food prepared for them, including delicacies they are used to. I recently took 11 Chinese billionaires on their first safari to Kenya and rather than teach a local guide Mandarin I took a Mandarin speaker and taught her to be a safari guide. All of these people have money to spend and so they are an important element for all businesses across Western Europe in these tough economic times.

In 2012, luxury is no longer defined by conspicuous consumption; it is more subtle and less ostentatious, Being able to navigate these rapidly changing times while maintaining a superior brand is the challenge, but put simply, it is about offering a better, more luxurious experience than anyone else.

Geoffrey Kent is the Founder, Chairman and CEO of Abercrombie & Kent, he is also Chairman of the World Travel and Tourism Council

Anguilla’s charm

Posted on by Ben Debski

While certain Caribbean spots have lost some of their exotic sparkle, Anguilla remains refreshingly authentic and distinctive. “Anguilla could be described as something of a Caribbean throwback; it represents the way the Caribbean used to be.  It’s unpretentious and unique with a friendly and relaxed atmosphere, while it possesses natural beauty that encompasses crystal-clear azure blue waters and sand that is white and incredibly soft to the touch,” says Candis Niles, Director of Tourism at Anguilla Tourist Board.

Not surprisingly, the island regularly appears on prestigious lists covering the best destinations of the world, and although it often receives accolades due to its world-renowned beaches, the appeal of the island has more facets than first meets the eye. Many years ago, a major magazine voted Anguilla first among the top ten travel destination in the world. “When the award was announced, we were convinced that Anguilla had received the award due to its enviable beaches, but we were actually rated because of the sense of community the writer had experienced during his visit,” explains Niles. “When sitting down for a meal, the writer spotted a person waving, and the stranger politely asked if the diner was enjoying his holiday. It emerged that the man was the taxi driver who had taken the writer from the airport a few days earlier. This type of friendliness and warmth is typical of Anguillans. The people of the island are our strongest assets.”

Notable accommodation and cuisine
Friendly locals certainly add to the overall atmosphere of Anguilla, but the accommodation culture makes the destination even more worthwhile. Diverse in kind and anything but hastily developed, the very first concepts to emerge when the tourism trade took off in 1978 still set the tone. “Some of the original developments still exist today, and each one has its own unique character and architectural direction, which actually adds to the authentic appeal of the destination”, explains Niles.

Since the original set of lodging concepts landed on Anguilla, the selection has diversified to cater to different requirements and desires. The so-called Charming Escapes Collection has emerged over the past few years to offer unique intimate, affordable accommodation with a distinctive Caribbean flair; while uxurious boutique-style properties have been launched to offer luxury-inclined holiday makers and business travellers exclusive and private villa accommodation at the very top end of the spectrum. In addition to the many rental options served up, Anguilla aficionados are also invited to purchase luxury properties on the island.

In order to maintain the island’s exclusive edge and tranquil air, any new development plans are carefully considered before being approved. “Anguilla is a small island covering a mere 35 square miles, and its most precious quality is its glorious sense of its tranquillity.

People come here to experience a therapeutic sense of calm and beauty, therefore it is important that the island doesn’t get overrun and exploited,” Niles assures us.

Another definite draw of the island is that it boasts a diverse culinary culture deriving from the many cultures that have called Anguilla their home over the centuries. Anguilla’s strong ties to fishing are clearly evident and all manner of fresh fish and seafood can be sampled when dining at the many different restaurants operating on the island.

“Anguillans are very proud of their food heritage, and we are adamant never to give visitors a bad food experience,” Niles assures us.

The types of restaurants offered up are varied and many. Upper end dining establishments complement casual beach style eateries that are located right at the water’s edge. While notable bars such as Johnno’s Beach Stop, Elvis Beach Bar and the Dune Preserve are amongst the many bars that have been internationally acclaimed.

Aside from eminent beaches and award winning bars, music is another important component of Anguillan life. It’s not unusual to be treated to live music while dining, and sometimes entire orchestras are created using instruments converted from everyday items.

Tranquillity, spiked with optional action
Most visitors who steer their step towards Anguilla do so in order to immerse themselves in the tranquil ambience that is typical of the destination. But while Anguilla is certainly relaxing, there are several activities to enjoy. Snorkelling and scuba diving are two options, while those not inclined to get wet can study the beauty of the seas and the curiosities within while onboard a glass-bottomed boat or kayak.

On the sports front, Anguilla boasts a renowned tennis academy which is recognised as the best in the region, while golfing aficionados can tee off on the signature PGA-standard Greg Norman Gold Course. Boat racing is another prominent sport on the island.

“Centuries ago, the men of Anguilla went to neighbouring islands to work in the fields, and to entertain themselves they raced back to Anguilla – hence the strong boat  racing heritage,” explains Niles. “Whenever an opportunity arises to hold a boat race, Anguillans will take it,” says Niles and laughs.

For more information please visit: http://ivisitanguilla.com/

Ethical business in Colombia

Posted on by Ben Debski

A warm glow that alludes to siestas, sunburn and slow traffic teases my eyelids as it glints off the buildings in the centre of Bucaramanga. The thick, humid air dampens a constant hive of activity that makes up the formal and informal economy of Colombia.

This is what I experience at the end of my day, alas not in person, but through the joys of global networking as I sit in my wintry apartment in Europe discussing the finer points of starting a business abroad with a young British entrepreneur. One who, at this particular moment, is lucky enough to be soaking up the early afternoon sun in Colombia – a land that holds not only economic potential, but the promise of continuing warmth too!

Whilst travelling around South America and eventually ending up in Colombia, Tim Woodhouse met his business partners; Londoner Milo Butterick, and Colombian counterpart Richi Mantilla, owner of Colombia Paragliding (colombiaparagliding.com). Combining their local and foreign experience they saw a gap in the tourist market for a hostel (www.kasaguane.com), in Bucaramanga, with a focus on the promotion of local guides and tour operators. The area boasts plenty of hotels, but for the more economically constrained traveller, or those wishing to stay for longer periods of time, they found little on offer.

With ten universities, a high percentage of poverty and a history of relative peace, Bucaramanga is situated 50km from the world’s widest canyon Chicamocha. The area is the perfect tourist destination for explorers, extreme sports enthusiasts, and cultural magpies. Slowly, after crime and kidnapping headlines sent many travellers to safer shores, the tourist industry is beginning to thrive.

The big picture
The partnership of social and economic inequality, and despite internal unrest and upheaval, has improved Colombia’s image. Visions of South American travel as articulated by the diaries of Ernesto ‘Che’ Guevara, the Rum Diaries and Paul Kemp on the big screen have have increasingly inspired travellers and writers to explore this part of the world with a sense of wonder.

It is unsurprising then that we see a generation of socially concerned visitors and tourists making an impact in Colombia and the broader continent. Those who wish for hot sea, blinding sun and sand in their sandwiches are increasingly seeking the opportunity to share their fortune with the country’s population.

Informal settlements have sprung up all over Bogota, the Capital of Colombia. Areas like Civdad Bolivar had an estimated population of 340,000 in 2011, a number that represents only the calculable residents. A third of this population is classified as youth lacking education, employment and opportunities.

Colombia brims with governmental promises to develop the country’s infrastructure, create more jobs and make Colombians less dependent on the informal economy. However, the support for basic services in the more disposable sectors of cities such as Bogotá continues to be more visible in rhetoric than on the streets.

Communities, hardened by the harsh realities of life at the bottom of the economic scale, have therefore taken the responsibility of essentials such as education and access to water and electricity onto their own shoulders. Violence, especially youth violence, however, continues to be an issue that even they can’t control on their own.

In Bogotá’s infamous Ciudad Bolivar, the existence of, and reliance upon, the informal economy expresses how, as with many developing countries, the reality of an urban centre’s ability to deal with mass rural exodus is limited. In this case there began an exponential migration from the countryside into urban centres after the 1950s. Succeeded by the popularisation of economic opportunities offered by cities, the huge number of displaced peoples in cities like Bogota can be mainly attributed to contemporary tides of violence. Whether due to the decades-old political » disputes between the FARC rebels and the government, or the drug militias, safety in rural environments is continually threatened.

The lack of jobs and infrastructure for the growing population, which is re-shaping the boundaries of the city through informal settlements, leaves a high proportion of youth living under the poverty line, with a void of time and few activities.

Social disruption in this way has led to the birth of projects that work with young people from volatile backgrounds and aim, in many cases, to teach them the importance of respect – respect for the community and for themselves – instead of mimicking their experiences of conflict and violence.

This is where new tourist orientated businesses offer visitors a sun-scorched, work-calloused chance to make a difference. As an information hub for travellers, owners like Tim can direct people to the most reliable and socially responsible tour guides, or in the long run, facilitate networks for volunteers to share their skills and time to local projects.

In Cartagena, a touristy coastal city, it is common to find backpackers moving tortoise-like through the streets. Shells discarded, you’re likely to later see them being tackled repeatedly by the swift bare feet of young footballers; that global language spoken with individual personality the world over.

Tourism with a twist
Recognising the global importance of the sport in creating community, Tiempo de Juego is one of a number of social projects that aims to turn the heads of disadvantaged youth to sport and education. Away, hopefully from the essentially short-lived alternatives of violent gangs, drugs and the Cartels.

Esteban Reyes, Director General of Fundación Tiempo de Juego, believes that with the right attitude and serious commitment, international involvement in such projects can be beneficial. To avoid counter-productive effects however, volunteers need to be more than fly-by-night angels of empathy. People are therefore expected to offer a minimum commitment of a month, whist others may stay more permanently or return on a regular basis.

More than anything, Esteban sees the potential for international interest giving local youth new opportunities: “The children of Tiempo de Juego have never travelled out of the country. Any initiative and support to bring them to know different cultures, or to participate in international sportive activities, would be of a very great impact.”

He invites anyone who is interested in coming to Colombia and volunteering with them in Bogotá or Cartagena to write to their volunteer programmes coordinator, Anamaria Guerra, (ana.guerra@tiempodejuego.org). Or find them at www.globalgiving.org/projects.
There is hope that the future of increased tourism to Bucaramanga could extend the network of both social projects such as Tiempo de Juego and the national and international volunteer network. Supporting this potential is the attraction to local extreme sports venues; the Colombia Paragliding school and the premier sports climbing destination in Colombia; Boquete de la Mojarra, Santander are both on the doorstep.

Boquete de la Mojarra, as a climbing area, is still young and being developed, but on a national and international level is already highly regarded. Taking advantage of this, local guides and instructors benefit from sports tourism, which is continually growing in popularity. Through the expansion of sports tourism in the area and the relevant infrastructure, the door is being opened for young people to attain employment and respect in the community.

With expatriates, like Tim, hoping to strengthen links between the global sports and travel communities and local experts, sites such as Boquete de la Mojarra will continue to develop, potentially leading to a situation in which freedom of movement around the global scape is more accessible for those worst affected by economic inequality.

There are many ways to travel physically; by bike, plane or camel, and there are many ways to travel cognitively; for work, pleasure, business or both. We should use this freedom to better understand the complex social and political systems underlying our jungle excursions and luxury voyages. This makes it better possible to enjoy the subtle beauties of human interaction and creativity – which surely form the foundations of any good experience abroad.

London’s Silicon Valley

Posted on by Ben Debski

Yammer, the San Francisco-based social enterprise software company, opened its European office in London’s Tech City in early 2011. In itself, that doesn’t sound like a huge event except that Yammer, one of the fastest growing new-economy companies of all time, came to London pretty much by default. It almost had no other choice.

In a remarkably short time Tech City, as it has come to be called, has become a magnet for a new wave of internet-based start-ups and for the overseas offices of US ones such as four year-old Yammer. All highly ambitious, they are clustering in Hoxton in the ancient borough of Hackney in such numbers that Tech City’s promoters have rather cheekily dubbed it London’s “Silicon Valley”, but not entirely without justification. By the end of 2011, no less than 600 high-tech companies had congregated in Tech City and more are arriving almost by the week.

The attractions of London for these fledgling operations appear to be almost irresistible. On one side, immediately north of Hoxton, is the historic banking district – the City – with its deep pockets to help fund such firms while on the other is the site for the 2012 Olympics with its vast array of related developments that are transforming the appearance and prospects of east London, long a run-down area. Nothing if not ambitious, Prime Minister David Cameron wants Tech City to become “one of the greatest technological centres in the world.”

And he may not be exaggerating. Just three years ago, Tech City boasted barely a score of start-up companies. At the start of 2011, there were about 200. By the end of the year, that number had trebled. The growth of Yammer seems to be fairly typical of the general rate of expansion. Nine months ago the Yammer outpost had just three employees. By late 2011, it had 40 and expects to at least double that number this year.

Thinking big
A classic cluster of like-minded companies is clearly occurring on a significant and rapid scale in the area. Yammer’s neighbours include internet radio group Lastfm, Twitter subsidiary TweetDeck and Mind Candy, the creator of kids’ site Moshi Monsters, and Solid State, a distributor of electronic components. Such has been the rush to Tech City that developers are rushing to catch up with the demand for office space. All relatively recent start-ups, these companies are overshadowed by longer-established new-economy communications giants such as Cisco Systems, Vodafone, Qualcomm, Intel, Facebook and Amazon. Another new revival is Google, which last year rented a seven-story office in Tech City where it’s working on a series of innovative products. Groupon, the king of online discount companies, moved its 700 UK staff there around the same time.

The breakneck growth of London’s Silicon Valley must be rather galling for the original one in northern California, which had a much longer period of gestation. It started building its reputation for pioneering work in electronics as far back as the early 1900s when Lee De Forest invented a vacuum tube called the Audion and Hewlett Packard pioneered oscilloscopes for testing electronics. And it took another 70 years before the current title caught on, following a series of newspaper articles.

Incentives
Although the UK government has been under fire for allegedly favouring the old-economy City, also known as the Square Mile, that has been the home for, first, goldsmiths and then banks for some 800 years, it is certainly pulling out all the stops to entice these new-economy companies. Courtesy of Her Majesty’s Customs and Excise, they benefit from a tax regime that allows hefty write-offs for investments in R&D. As Tech City’s manager Eric van der Kleij points out: “The government keeps its margin but isn’t greedy.”

In other ways the authorities bend over backwards to make life easy for new arrivals, for instance by reducing red tape to a minimum (an initiative applauded by entrepreneurs from Europe where the paperwork is generally much more onerous), organising networking sessions for Tech City companies to get together, and even through the provision of a “landing” service that provides advice and assistance for newcomers in finding offices.

“They looked after us fantastically well,” Aitor Grandes, founder of Spanish start-up 24 Symbols, a site for downloading books, told newspaper Expansion. “They even showed us how to register a company in Britain and how to open a business account.” The first Spanish company in Tech City, 24 Symbols expects to open up this year.

In with the new
London’s position as a hotbed of venture capital is also an attraction for this new wave of companies hoping to become tomorrow’s commercial giants. Some 200 firms, most of them based in the City, are looking to pump money into promising start-ups. According to the latest available figures from the British Venture Capital Association, an organisation that includes private equity houses, cleantech is the most popular funding target, with software second. Their average individual investment in 2010,was £790,000.

To the surprise of some of the new arrivals at Tech City, they have discovered they are joining many other homegrown, venture capital-funded companies already based in London. They include online movie company Lovefilm, fan-to-fan ticket exchange Seatwave, radical printing company MOO.com, one-stop fashion boutique site Farfetch.com founded by Portuguese entrepreneur Jose Neves, and notonthehighstreet.com, the fast-growing retailer. Only the US can claim more venture capital-backed companies than the UK.

As a vast commercial hub of 7.5 million people, Greater London has always been a magnet for companies of all kinds, but the launch early last year of London & Partners by Mayor Boris Johnson, a politician, journalist and author, has hurried things along. Established for the express purpose of promoting London as the world’s foremost city for visiting, studying and, above all, investing, London & Partners will formally take over the role of the London Development Agency in early 2012 but is already active. Last year, for example, the new agency brought 130 new companies to London – 20 to Tech City with the rest scattered all over the metropolis.

The Olympic effect
Belying his intellectual image, Johnson has used the Olympics as a showcase to vigorously promote the economic attractions of London as a gateway to Europe to non-banking sector companies in cleantech, software, engineering and other industries deemed suitable for a densely populated area. London & Partners claims to have already leveraged the Olympics into 5,000 permanent new jobs.

The imminence of the Olympics, which take place between July 27 and August 12, has also triggered a flood of capital for regeneration and new building projects and infrastructure that has not only spruced up the appearance of London but made it a more congenial environment in which to live and work. The underground rail system, once a byword for discomfort, and scores of dilapidated stations have benefited from billions of pounds of new money, while the bus and overground rail networks is much more efficient than it was a decade ago.

Simultaneously, the environment of Hoxton and neighbouring Shoreditch has been transformed with new restaurants, shops and entertainment as well as hundreds of modern apartments. For many, the Renzo Piano-designed, all-glass building known as ‘The Shard’ has become the symbol of a resurgent capital. Towering 310 metres above the London Bridge area (which is also getting a face-lift), it boasts 95 levels and will be the Europe’s loftiest building when it’s topped off in a few months.

Meantime Mayor Johnson has a long shopping list. In November he despatched a mission to China to woo businesses to the city, or rather more businesses because London already claims at least 60 companies from the Heavenly Kingdom, many of which arrived only in the last three years. Some of China’s best-known brands are located there, including Alibaba.com – ‘China’s Amazon’, computer graphics group Crystal CG, appliance manufacturer Haier and advertising group Xiking among others. Indeed China is already the third largest foreign director investor in London and, if anything, the number of arrivals is growing. Last year saw a 20 percent increase in Chinese companies locating there.

The mayor’s office is also behind a massive investment in digital infrastructure. The city is being wired with 4G as the bedrock of a strategy to turn it into Europe’s ‘digital capital’ by the middle of this year. In this, London already has a head start here – it is home to three times as many software and IT companies than any other European city.

This splurge of capital is clearly producing dividends. In the latest Best Business City in Europe survey by consultants Cushman & Wakefield, London came out top, ranking first in six of the twelve categories. Specialist publication fDi magazine points out that “London has attracted more than one third more foreign direct investment projects over the past five years than any other European city.”

Within the folds of the mega-city, Tech City is developing a momentum all its own. “It’s a great time to be an entrepreneur in London,” enthuses Oscar Jazdowski of Silicon Valley Bank, a major lender to the technology and venture capital industries that is seeking a full banking licence there. “It seems that you can’t move in Shoreditch for bright and ambitious tech CEOs harbouring dreams of becoming Europe’s answer to Bill Gates, Mark Zuckerberg or Steve Jobs.”

Tunisia’s war wounds

Posted on by Ben Debski

A year on from Tunisia’s instigation of the Arab Spring and the fall of Ben Ali, the country is enjoying democracy and freedom to the full. But the price it has paid for its newfound status is that the country’s ultimate GDP booster – tourism – has taken a beating. The past summer saw a catastrophic decline in visitors; tourist numbers were halved in 2011, dwindling to about 3.5 million, as compared to the seven million tourists crossing the country borders in 2010 and contributing with 3.5bn dinars ($2.55bn) in revenue.

The demographics that proved most elusive were those known to be most concerned about security, namely families and the elderly. Another important group that has made itself scarce is the Libyan contingent that usually flocks to Tunisia to take advantage of its good medical care facilities and to embrace its comparatively impressive shopping terrain.

Not surprisingly, the areas that have been worst hit by the hardship are coastal regions whose economies rely heavily on tourism. Hammamet, Djerba and Sousse have all seen a staggering number of hotels closing, while they have also suffered unemployment rates far exceeding those recorded before the revolution. Needless to say, the tourism trade provides a key source of income in Tunisia; the industry used to account for 6.5 percent of the country’s GDP, and it employs as many as one in five Tunisians.

“It’s been terrible,” said Trade and Tourism Minister Mehdi Houas in an interview for Reuters in June 2011. “The only sector affected was tourism, and of course (related) work. But it’s terrible for the economy as a whole because it’s 50 percent of our foreign exchange. We lost a lot, especially compared with what we should have had.”

Not licking its wounds for long, the country quickly picked itself up from the rubble and hopes are high that travellers will soon steer their step towards Tunisian shores again. To assist the quest, the Tunisian tourist board is currently investing heavily in marketing and launched a rather daring advertising campaign last year. In one of the ads, which ran in Paris and London, a picture of a woman enjoying a massage was accompanied by a caption reading “They say that in Tunisia some people receive heavy-handed treatment”. Another variant of the campaign showed an archaeological site with a caption reading, “They say Tunisia is nothing but ruins”.
The campaign was designed to gently mock would-be tourists’ fears and thereby defuse their anxieties. It also serves to demonstrate the fact that Tunisia is now able to laugh at itself in a way that was simply not possible during Ben Ali’s strict regime.

Turning a new leaf, in more ways than one
Painting a picture that is anything but bleak, bloggers and journalists based in the North African nation convey a sense of a country that has been invigorated with a new lease of life.
“Tunis has a different feel, a different taste and is no longer the static city, polished for postcards and lost in a time warp,” enthused Dr Zied Mhirsi, co-founder of news website tunisialive.net in a blog spot published by the Guardian newspaper in June 2011. “The city is alive, and Avenue Habib Bourguiba, the Tunisian Champs Elysées, is now the Speakers’ Corner of Tunis, where people come to from all over the country to discuss, demonstrate, and express their views on current political stories.
“The walls are tagged with “Thank-you Facebook” and “Vive la Révolution” and cafes are packed with young people, girls and boys clad in their summer clothes, drinking mint tea or café direct, the Tunisian version of the latte.”
Tunisia and its countrymen are certainly enjoying their newfound identity, and as complex as it may sound, the tourism slump it suffered in the aftermath of the revolution could ultimately work in the country’s favour, functioning a little like a well needed detox. The general consensus is that that the country should aim to up its game, transforming itself to a haven for high-end eco tourism in a bid to shed its reputation as a cut-price, all-inclusive holiday destination. To make that prospect a reality, plans are already in the works. Mehdi Houas has a string of initiatives up his sleeve, including the conception of a set of new marinas to allow for extended space for luxury boats.
Indeed, Tunisia is too fascinating and beautiful to shun. An obvious highlight of the spot is the medina, which dates back to medieval times; while the fascinating ruins of Carthage and the sandy beaches that stretch on for thousands of kilometres are equally worthy draws. If a shift successfully does take place in the sphere of Tunisian tourism alongside its reformed society, the country could well become a business destination to be reckoned with in the near future.

How to conduct business in Mexico

Posted on by Ben Debski

With a population of more than 111 million and a working population of about 78 million, Mexico is not only the most populous Spanish-speaking country in the world (and the second most populous country in Latin America after Portuguese-speaking Brazil), but also a very significant economic force.

According to the World Bank, Mexico ranks worldwide as the 13th largest economy in nominal terms and 11th by purchasing power. Despite its vast size – its close to two million square kilometres make Mexico about eight times larger than the entire UK – Mexico is a highly urbanised country, with more than 76 percent of the population living in urban areas. Some estimates suggest that the population of Mexico City and its environs is around 22 million, which would make it the largest concentration of population in the Western hemisphere.

Mexico’s annual GDP is currently running at about $1.231trn. The rate of growth is promising at around 5.5 percent annually, at a time when many Western countries are not achieving any growth at all, or are in fact contracting. The economic growth rate suggests that Mexico still has plenty of economic slack to be taken up, which can only be encouraging to foreigners interested in doing business there.

The annual average Mexican GDP per capita is running at around $10,000 – implying that a substantial proportion of Mexicans (about one in three) live in poverty, while about 10 percent of the population live in extreme poverty.  Sector-wise, around 3.9 percent of the GDP is generated by agriculture, 32.6 percent by industry and the remainder by services.

The major Mexican industries are electronics, food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables and tourism.

Exports amounted to about $298.5bn in 2010. The most important export goods for Mexico are automobiles, electronics, televisions, computers, mobile phones, LCD displays, oil and oil products, silver, fruits, vegetables, coffee and cotton. Mexico is a major non-OPEC oil producer, and is the third-largest supplier of foreign oil to the US.

Mexican imports in 2010 were estimated at $301.5bn, with the most important imported products being metalworking machines, steel mill products, agricultural machinery, metals, repair parts or motor vehicles, aircraft, aircraft parts and oil production equipment.

Personality counts
‘The Spanish race, sir, is prolific of remarkable characters in every rank of life,’ asserts the retired English merchant Captain Mitchell in Joseph Conrad’s Nostromo (1904). Anyone seeking to make the most of business opportunities in the enormous, colourful and rapidly changing nation needs to be as receptive to personality as to potential profits.

The Mexican business world is intensely personal; businesses frequently tend to feature members of the same family not so much for reasons of nepotism but because families feel they can trust other family members.

Not all Mexican businesspeople necessarily trust foreign would-be suppliers or partners in the early stages; what is certain is that this is an economy where personal relationships are vital. Indeed, the nature of the personal relationship may be more likely to determine the direction of a business decision than the more advantageous business deal or even the better-quality product or service.

It’s also important to note that in Mexico, showing respect for a person, and the practical sensitivity of making a rapid and informed assessment of how the person’s authority and/or status could be affected by a particular course of action, is essential to the successful forging of business relationships. Mexicans tend to view politics in highly personal terms, too. Revolutionaries such as Emiliano Zapata, Pancho Villa and Francisco Madero are still legendary figures.

The man at the top
Current president Felipe Calderon was born in 1962 and has held office since December 1 2006. He was elected for a single six-year term through 2012, has managed to secure himself a wide base of support and is admired for the decisiveness of his personality as much as for his tangible achievements. These are regarded as including the creation of the most universities (96 so far) by any president of Mexico. He is also credited with being the first Mexican president to ensure that every Mexican child between the ages of six to 11 gets a place at an elementary school.

More than 1,000 hospitals have been built since Calderon began his term of office, and around 2,000 hospitals have been rebuilt or extended. Calderon and his government is also credited with more than doubling (to 100 million) the number of Mexicans who have access to the healthcare system, compared with about 40 million under his predecessor Vicente Fox.

In addition, Calderon and his government have been praised for creating more than 16,500 kilometres of interstate highways, and for taking a decisive stance on Mexico’s drug cartels, including sending in the military to try to put down the cartels and to stem the worrying tide of violence among rival drug groups competing for territories.

The office of the Mexican president is considered to be a revolutionary office, in that the office is an inheritance of the Mexican Revolution and that the president’s powers are derived from the Revolutionary Constitution of 1917. The term of office of a Mexican president is strictly limited to one six-year term and is known as the sexenio. No person who has held the office, even in a caretaker capacity, is allowed to run again.

Mexico’s chairmanship of the G20
These are especially exciting times for Calderon and Mexico economically. In December, Mexico began a one-year term of chairing – and so in effect leading – the Group of 20 economic heavyweight nations.

This naturally involves Calderon playing a key role in supervising efforts to help financially stricken developed nations receive more help from the IMF. Commentators expect that these steps may now, under Mexico’s leadership of the G20, result in demands from emerging market nations to have more say in the administration of the IMF.

There is general agreement among economic commentators who specialise in Mexico that there is an impetus in the Mexican economy to make it less dependent on the US market. Mexico’s overseas trade regime is currently based around 13 trade agreements with a total of 44 countries, including the US, Canada, and the EU. The country still relies heavily on supplying the US market (with which it has, after all, a border of 1,969 miles) but Mexico is also seeking to diversify its export destinations. Eighty percent of Mexico’s exports went to the US in 2010, down from a high of nearly 90 percent in 2001.

The EU is currently the second most important trading partner after the US. Trade between Mexico and the EU continues to increase. In 2009, the last year for which reliable comparisons are available, the EU imported €9.9bn of goods from Mexico, and exported €15.9bn of goods to Mexico.

The EU’s key imports from Mexico in 2009 were mineral products (24.9 percent), machinery and electric equipment (21.7 percent), transport equipment (18.7 percent) and optic photo precision equipment (10.1 percent). Key EU imports to Mexico in 2009 included machinery and electric equipment (28.7 percent), transport equipment (14.5 percent), chemical products (14.4 percent) and mineral products (11.6 percent.)

What’s certain is that Mexico is a land of phenomenal potential for businesspeople eager to explore the potential of the market and with business propositions that Mexicans may find interesting. People who have done business successfully in Mexico emphasise the importance of gaining some understanding of the nation if one wants to maximise one’s chances of enjoying business success there. Culturally, Mexico is a mixture of native American, Spanish and North American influences, with lots of regional variations.

The nation is culturally something of a melting-pot, with descendants of native Aztec, Maya and Toltec civilisations mingling with Spanish influences. Business people who take the trouble to get to know the country through travel, by getting to know local people outside the comfort of large international hotels, may find themselves at a significant advantage when it comes to working there.

Language is also regarded as important for making progress within the Mexican business community. Mexicans appreciate efforts made to learn Spanish, and it should not always be assumed that every potential customer will necessarily understand English. For the determined businessperson seeking new business markets, Mexico can offer much potential, especially at this time when Mexico is consciously aiming to increase trade with the EU and other South American countries.

What next for China?

Posted on by Ben Debski

Inflation seems to be the major issue facing the Chinese economy at this moment in time. The Chinese government also seems to be committed to a series of interrelated policies that are aimed at curbing excessive inflation and keeping the economy on a stable course.

Last September Robert Zoellick, the president of the World Bank, commented on the need for the Chinese government to reduce the headline measure during a trip to Beijing for talks with the Chinese leadership. These discussions centred on the policies necessary to transform their economy from one powered by external demand and export-led growth to one reliant on increased domestic consumption instead. Recent figures have been encouraging and indicative of the success of government policies, as of last November inflation went from a three-year high of 6.5 percent in July, to 5.5 percent in October, and, finally, 4.2 percent.

This is not to say that the Chinese economy is without problems. It has been reported that there has been a slowdown in retail owing to a decline in vehicle demand, whilst the structure and nature of the economy as a whole should also be borne in mind. Its reliance on external demand for Chinese exports exposes it to any downturn or slowdown in its major trading partners. These are the various constituent states of the EU – which as a bloc constitutes China’s largest trading partner – the United States and Japan, the latter of which obviously suffered from the fall-out of last year’s nuclear disaster and its impact on domestic energy production. Plainly, China is not inured to any of the travails afflicting the global economy. This is because domestic consumption as it is currently constituted does not provide sufficient capacity to mitigate such exposure.

There are, however, reasons for optimism. The price of oil, the essential lubricant for all economic activity, has fallen on global markets. Given Chinese demand for it, that is one bar to economic expansion that has, though perhaps temporarily, fallen by the wayside.

One must also look to the fiscal position of the Chinese government; it has booming tax revenues, in addition to its copious foreign currency assets, whatever concerns one may have over the dollar. This position lends itself to room for fiscal manoeuvre, as witnessed by those policies that have been instituted to restrict inflation. This is in addition to potential growth over the short to medium term so as to further restrict growth in the measure.

Keeping up appearances
The great concern is over how well China manages what seems to be the unfolding transition from high, very high, growth to growth that, while still superior to anything the West is likely to see for the foreseeable future, is significantly less than the 9-10 percent that has come to be seen as normal over the past thirty years. Consideration of this aspect opens up interesting questions about the political impact of circumstances conspiring to question the implicit political bargain made between the state and the people.

This bargain, namely that, in return for political acquiescence, the party will ensure you receive high growth and visibly improving living standards, seems to be destabilised by slowing growth rates and high inflation, which eats away at the standard of living. We might, in explicating so, begin to see quite how seriously the Communist Party of China takes the inflation issue, and indeed, economic management in general.

Not only does the People’s Bank of China have the money, but it and the finance ministry also possess the ability to lower their own interest rates, having hiked them last year. This is a situation unlike in the UK where record low interest rates are employed, however ineffectively, to encourage lending. Additionally, they can also loosen their fiscal policy, having previously tightened it, should that prove useful.

How envious the bankers and finance ministers of the West must be when they consider the panoply of options open and available to their Chinese counterparts. The Chinese have also been doing their best to prevent the housing market from overheating, wary of the unintended consequences that can flow from the fetishisation of so totemic a measure; though controls on preventing rural dwellers from moving to overcrowded cities in the land of the one child policy also, presumably, help in this regard.

Good intentions
Further specific measures were outlined at a recent press conference given by Vice Premier Li Keqiang, who is expected to receive a promotion at the next leadership handover later this year, and Finance Minister Xie Xuren. It was reported that China would see faster growing fiscal expenditure with a moderate increase in deficit spending and public debt as a result. Plans include a lessening of the tax burden and the scraping of certain administrative fees. It is interesting to contrast these policies with our own, current, experience of a pronounced fiscal strait jacket.

We might also consider the potential impact of increasing global economic rebalancing on China. That is to say the transition of previously high-spending, indebted countries, to a lower spending threshold, so as to get their spending under control, as well as any impact this will have on their demand as a factor independent of external recessions. Such a description applies to trading partners such as many EU countries and the US and may present a significant challenge to Chinese policymakers some way down the road.

It would seem then, that whilst the circumstances are mainly from Beijing’s perspective, benevolent, there are some hazards and that Chinese economic policy, benefiting from those positive circumstances, has been pitched in such a way to ward off inflation, for now, and its attendant dangers. As for the longer term, it will be interesting to see the way in which policy develops in accord with Zoellick’s advice and, undoubtedly, China’s own inclinations.

This is not so much a question of China embarking upon a policy of autarky, but merely developing its own internal economy and market and, as a happy coincidence, mitigating its exposure to a fragile global economy. China has the luck engendered by its historically more sensible policies, and also benefits from other countries’ less sensible policies in this regard. It can choose its course, it has options available, far greater than we in the West possess, and not to underestimate other internal problems, such as corruption, or that previously mentioned slow down in retail, it can, as we’ve seen, decide upon its future course.

The balancing act
A more nuanced appraisal is in order; there are potential hazards, inflation, rebalancing, global recession, a possible spike in the oil price, but so far Chinese policy has illustrated the government’s capacity to navigate these rocky waters, as well as its intention to surmount any potential difficulties it encounters by sensible policy measures.

It is a certainty that growth will slow, necessarily; the more developed you become the more difficult it becomes to maintain those phenomenal growth rates, as illustrated by western economies. So, there are challenges, but there are also signs of encouragement, with, so far, on a macro level, no sign of a bubble bursting. This seems conducive to the soft landing of which commentators speak, which may be a wrench, difficult to adjust to, but doesn’t, on a fundamental level, adversely impact China’s potential, for which I can best invoke a recent Economist feature outlining a slew of measures in which China has overtaken America and, on current trends, will, within the next few years, overtake America.

China’s position is fascinating, it has benefitted from the fact that it is not an economy like America’s or most other EU countries you may care to name in the sense that, like Germany, it produces things and has invested its money wisely. This has meant that it has not exposed itself to the same systemic flaws that afflict us. It doesn’t, however, have the same liabilities, in the sense of this ostensibly communist state having no direct equivalent to the welfare state, or state pension provision. That is not to take a hard neo-liberal line, but merely to recognise an irony: Red China, which will soon be the richest country on earth has fewer, if any, welfare mechanisms than the capitalist west. This has meant that it hasn’t needed, at the behest of electorates, to over leverage itself so as to afford pensions, health and social security, which jostle for funding along with more venerable governmental concerns such as defence and foreign policy. How that reality plays out will be very interesting to see, especially when one considers the looming ageing crisis in China.

Portuguese elegance

Posted on by Ben Debski

Whether you wish to immerse yourself in the private seclusion of your comfortable guestroom in absolute laziness, indulge a day in the spa or enjoy a meal by the cascading waterfalls, this hotel has it all. If activities are what matter most, choices range from horse riding, shops, clubs, bars, restaurants, beaches, international casino, marina, water sports and of course the finest golfing to name only a few.

The Hilton Vilamoura As Cascatas Golf Resort & Spa is nestled in four hectares of idyllic and romantic gardens, with enormous pools, cascading waterways, lakes, grottos and pavilions that create a sense of complete serenity. The modern architecture has a distinctive Moorish accent, in keeping with Vilamoura heritage.

The Hilton Vilamoura was voted Best Luxury Hotel in Portugal 2009, 2011 by Business Destinations magazine, Portugal’s Leading Hotel in 2009, Portugal’s Leading Golf Resort in 2010 and Portugal’s Leading Resort in 2011 by the World Travel Awards. The hotel features a comprehensive array of business amenities – perfect for meetings, conferences and corporate team-building exercises.

At the Hilton Vilamoura As Cascatas Golf Resort & Spa, there are 183 spacious, modern guestrooms – including ten junior suites, one presidential suite and 41 one and two bedroom apartments. All enjoy large balconies or terraces, with rooms and suites overlooking nearby golf courses or the resort’s lush gardens. Rooms are air-conditioned, all with movies and tea and coffee facilities available; the relaxation you’d rather feel.

In the hotel there are three restaurants and two bars; The Cilantro restaurant with traditional Portuguese and Latin American Cuisine, the Moscada Restaurant offers buffet menus for Breakfast and Dinner while the Aquarela Bar & Restaurant opens during summer time for alfresco meals and thematic buffets/barbecues. Cocktails, spirits, tapas and light snacks are also available at the As Cascatas Beach Club, which is open during the summer months, while the Rubi Bar is the perfect place to relax and enjoy live music and sports shown on TV. The Hilton Vilamoura As Cascatas Golf Resort & Spa takes pride in having a state-of- the-art Spa – 7 Seven Spa, which is one of the largest in Portugal with over 2,800sq m. However, it is not just its size that impresses but the repertoire of health, beauty and rejuvenating wellness products you will find in there. Every single detail is thought of for your most memorable, relaxing experience.

The hotel features a comprehensive array of business amenities – perfect for meetings, conferences and corporate teambuilding exercises for up to 400 people. Six flexible rooms can also be divided into ten multi-purpose breakout rooms, foyer area and courtyard ideal for cocktails and exhibitions. The Business Centre comes equipped with a dedicated Hilton Meetings Manager, on-site audio-visual team and state-of-the-art equipment.

Easily accessible from Faro International Airport, the Hilton Vilamoura utilises all of Hilton’s expertise on business services to provide unrivalled catering options and impeccable meeting spaces.

For more information please visit: http://www.hiltonvilamouraresort.com/