To fall asleep soundly, a sheep can only count on himself …| By Georges Panayotis
By Georges Panayotis, President & CEO - MKG Group
looms that made silk weaving faster, better and cheaper, established corporations continue to be behind the times. Fighting major changes in consumer habits and against consumers' interests is both counter-productive and irresponsible.
years of change in business models and consumer expectations. In the name of corporatism and to protect their established positions, they want to blockade car service mobile applications, thereby only gaining further discontentment from clients and ironic jabs from humorists. Their image, already quite unflattering, has received a new slap as they once again displayed their incapacity - or refusal - to adapt to competition that provides better service. The blockades, like solid dams staving off the pressure of rising waters, wind up being shattered when the pressure rises irresistibly. The consequences are even more dramatic because the overwhelmed territories find their inhabitants even more helpless in their unprepared state.
Hoteliers, likewise, should think twice before blockading technological evolutions in theirfight against new forms of commercial accommodations that raise growing interest from their customers. Of course it is necessary to channel, to minimize losses, but there is no point in multiplying obstacles if the flow continues to grow. It is much more efficient to project into the future, to anticipate behavioral changes and offer an innovative response before another player does and recuperates the market. Busy with daily management, mastering new tools, updating for compliancy with new requirements, hoteliers have somewhat neglected innovation and investment for the future. And yet that is where health and prosperity hail from.
Not so long ago, the implementation of "CDEC"s to regulate the creation of new supplymade France lose quite a bit of time that would have been spent better by restructuring hotel supply when it was still possible. Today they are paying the high price: hundreds of small properties are disappearing, as they thought for too long they were protected by a law that only delayed things and hid their weaknesses.
The animals spirit, the pioneering spirit that animated the hotel industry in the end ofthe last century gave way too much to stewardship and financial calculation. The tourism universe is now being nibbled away by Anglo-Saxon entrepreneurs and corporate adventurers from Asia-Pacific or Latin America. We surely have something to learn from them and the French President is happy to invite them to invest in Europe, but why should they take up all the room?
It is necessary to promote innovative and conquering investment with the samedetermination as the appeal of our territory. Our sector is very important in the economy and even more so in terms of balance of payments and tax revenues. Are we just sheep for shearing in the form of taxes? Growing a little weaker each day as the shears clip away?
While foreign investors benefit from a particularly advantageous regime, a shift back totargeted incentives would stimulate investment and tomorrow's taxes. This leaves us to wonder if the government is content to watch the proliferation of corporations that prevent key reforms and encourage peaceful stasis...