the joint wto & ih&ra; study on hotel classification - Hotel Designs

IND.D.004.16 April 2004EXECUTIVE SUMMARYSurvey <strong>ra</strong>tionaleWith <strong>the</strong> d<strong>ra</strong>matic development of domestic and international t<strong>ra</strong>vel in <strong>the</strong> past fifty years,<strong>the</strong> question of how hotel <strong>ra</strong>tings compare across <strong>the</strong> world is periodically <strong>ra</strong>ised byvarious public and private-sector interests. As a result hotel classification has appearedon <strong>the</strong> agenda of <strong>the</strong> World Tourism Organisation for a conside<strong>ra</strong>ble number of years.Most recently, <strong>the</strong> topic was included in <strong>the</strong> WTO 2000-2001 Work Prog<strong>ra</strong>mme.The International Hotel & Restau<strong>ra</strong>nt Association (IH&RA) proposed that before any newwork was undertaken, <strong>the</strong> first stage of any project should be to d<strong>ra</strong>w up a status reporton <strong>the</strong> various schemes existing throughout <strong>the</strong> world. WTO <strong>the</strong>n appointed IH&RA itsdesignated expert to undertake this status report. In this first stage, IH&RA limited itsrole to surveying <strong>the</strong> private sector and specifically to preparing:- a status report (ie inventory) of existing hotel classification schemes- a compa<strong>ra</strong>tive analysis of <strong>the</strong>se schemes (qualitative and quantitativeelements)At <strong>the</strong> same time, WTO surveyed public sector involvement in hotel classification via itsMember National Tourism Administ<strong>ra</strong>tions.Scope and findings of surveyAfter reviewing previous work by o<strong>the</strong>r bodies (IUOTO, ISO, CEN, HOTREC), <strong>the</strong>present <strong>study</strong> collates <strong>the</strong> results of <strong>the</strong>se two surveys and provides a compa<strong>ra</strong>tiveanalysis of <strong>the</strong>ir findings, 31 countries for <strong>the</strong> private sector and 89 for <strong>the</strong> public sector.Ove<strong>ra</strong>ll, of <strong>the</strong> countries surveyed, 83 have an official hotel classification scheme, whileonly 23 countries have an official classification scheme covering hotels, apartmenthotels, motels and inns.Where <strong>the</strong> public sector is concerned, 20 countries indicate that classification is used tocontrol or monitor accommodation tariffs and 13 that it is used as <strong>the</strong> basis for <strong>the</strong>application of government taxes such as VAT (Value-Added Tax). The private sectorreport no link between classification and <strong>the</strong> social obligations imposed on employers.The two bodies most involved in devising and d<strong>ra</strong>fting <strong>the</strong> hotel classification scheme areofficials of National Tourism Administ<strong>ra</strong>tions (NTA) with o<strong>the</strong>r government officials (in 49countries) and <strong>the</strong> national hotel association, <strong>ra</strong>rely alone and gene<strong>ra</strong>lly when consultedby government authorities (in 48 countries). In addition, 40 countries indicate that <strong>the</strong>system is based on that of ano<strong>the</strong>r (usually neighbouring) country.Classification is mandatory for all establishments in 46 countries. In 55 it is needed toobtain a licence to ope<strong>ra</strong>te whereas in 32 o<strong>the</strong>rs, establishments can ope<strong>ra</strong>te withoutbeing classified.O<strong>the</strong>r forms of classificationAlongside <strong>the</strong> g<strong>ra</strong>ding schemes surveyed above, <strong>the</strong> report reviews o<strong>the</strong>r forms ofclassification. Major Tour Ope<strong>ra</strong>tors often <strong>ra</strong>te hotels according to <strong>the</strong>ir own criteria whileschemes used in electronic distribution channels (eg. CRS, GDS) are typically devised- 2 -