MADRID—Now that more than ever, sound minds, experienced leadership and level judgements are needed to counter world threats that are growing in scale, speed and spontaneity, speakers said on the opening day of the World Travel & Tourism Council’s Global Summit.
The threats derive from new business innovations, terrorism, political instability and epidemics. “We live and breathe (disruption) every day. … There will be disruption on prices, because of terrorism, so you must have leadership that is resilient and mentally tough,” said Gary Chapman, Emirates Group’s president of group services and DNATA (Emirates’ cargo ground-handling operation), during a panel titled “Drivers of disruption.”
Two types of disruption that provide the right type of opportunity include those from technology companies and the new Chinese hotel guest.
China was mentioned far more times than any other game-changer. Chen Feng, chairman of the board for HNA Group, which has hotel and tourism interests among its other business segments, said soon Chinese travelers would reach 500 million in number.
“Countries outside will need to change (their offerings), and this can be done with Chinese cooperation. Those countries that do not (change), will not flourish,” Chen said.
In the world of hotels and tourism, Julie Meyer, CEO of U.S. venture capital company Ariadne Capital, said: “Consumer (big) data has made every transaction a multi-partner experience.”
Big data entering the hotel and travel industry has possibly led to one of the most serious disruptions facing it.
“Personalization led to Big Data, which in turn led to cyber security. Today, disruption comes out of nowhere and goes global instantly. Leaders now have to deal with a constant flow of disruptors, and most important is understanding which ones of them are the important ones to deal with,” said Jeff Rutledge, CEO of AIG Travel.
Don’t worry, be happy
Despite gloom, positivity has to be the way forward, speakers said.
“We are living in the best of times, and I spend a lot of my time trying to persuade very skeptical audiences that this is so,” said Richard Fenning, CEO of risk consultant Control Risks.
The highest profile news on the side of good, according to Fenning, is the possible reintroduction of Iran into global conversation.
Other notable sources of disruption (with attendant positivity), Fenning added, are:
- Russia: “I do not think Russia has territorial desires beyond its own borders. (Russia) is just a terrible disruptor, but the ruble has come back a little, despite inflation still being a real concern.”
- India: “The stasis of India now looks to be ending, with new Prime Minister Narendra Modi canny, smart, experienced and, while once being on European and U.S. travel watch lists, now sitting at the table next to President Barack Obama.”
- Ebola virus: “This needs to be looked at through a glass-half-full (perspective), as the countries that have been hit hardest are nearly all those countries least able to deal with it, but they have.”
Dwarfing all these potential disruptors is China, Fenning said.
“Will the Chinese government be successful this year dealing with the changes in Chinese economics? This problem outweighs all other disruption, so inter-dependent is it in the global picture. All other problems are containable, while China is seismic, but again positivity, as the group running China today is the most capable it has ever had,” Fenning said.
Former EC President José Manuel Barroso was equally positive during a keynote address despite knowing first-hand the flaws and difficulties in the European Union and, in some member countries, high unemployment.
“Travel and tourism has to be regarded as one of the biggest positives of civilization,” Barroso said.
Barroso said Europeans want progressive reforms that will make them more competitive, but do not want to change a system that includes 7% of the world’s population but 56% of its welfare payments.
“There is a risk of EU fragmentation, but I believe more interaction is going to happen, mostly in the Eurozone,” said Barroso, who added a year ago it would have been unfathomable that the European Central Bank could have made the decisions it did with the major banks and governments all in agreement.
A quick computer poll of the audience showed 39% of the audience said Europe would be more unified, with 30% saying it would not.
“How can we speak about decline when the (EU) is expanding, is the world’s biggest trade bloc and has the biggest power in terms of travel and tourism? Ten percent of (gross domestic product) and 9.7 million people working in the industry,” Barroso said.
Despite Europe being in what Barroso called a “post-traumatic state,” he underlined the stress was on the prefix “post.”
“(The EU) might only be showing 2% growth, yes, small, but it’s sustainable. Much smaller than pre-recession, but then growth was not sustainable at all and based completely on debt,” Barroso added.
“What is the point of pessimism? Are you pessimistic with your employees?” Barroso added.