IND.D.004.16 April 2004for <str<strong>on</strong>g>the</str<strong>on</strong>g> benefit of <str<strong>on</strong>g>the</str<strong>on</strong>g> t<str<strong>on</strong>g>ra</str<strong>on</strong>g>vel professi<strong>on</strong>als (and t<str<strong>on</strong>g>ra</str<strong>on</strong>g>vel agents in particular). These are oftenbased <strong>on</strong> guides such as <str<strong>on</strong>g>the</str<strong>on</strong>g> US Official <strong>Hotel</strong> Guide originally <strong>on</strong>ly available in print andnow also electr<strong>on</strong>ically. Although <str<strong>on</strong>g>the</str<strong>on</strong>g> star <str<strong>on</strong>g>ra</str<strong>on</strong>g>ting system is <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>on</strong>e most in use throughout<str<strong>on</strong>g>the</str<strong>on</strong>g> world, o<str<strong>on</strong>g>the</str<strong>on</strong>g>r symbols are also used (diam<strong>on</strong>ds, crowns etc.), sometimes even incombinati<strong>on</strong>. Irrespective of <str<strong>on</strong>g>the</str<strong>on</strong>g> symbol used, all systems break accommodati<strong>on</strong> downinto three or four major bands (usually luxury, superior, mid-market, budget/ec<strong>on</strong>omy).Major <strong>hotel</strong> companies prefer to use b<str<strong>on</strong>g>ra</str<strong>on</strong>g>nding as a means of positi<strong>on</strong>ing <str<strong>on</strong>g>the</str<strong>on</strong>g>ir product <strong>on</strong><str<strong>on</strong>g>the</str<strong>on</strong>g> market and typically place <str<strong>on</strong>g>the</str<strong>on</strong>g> customer and his/her profile, needs and desires at <str<strong>on</strong>g>the</str<strong>on</strong>g>heart of <str<strong>on</strong>g>the</str<strong>on</strong>g>ir marketing st<str<strong>on</strong>g>ra</str<strong>on</strong>g>tegies.Within <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>hotel</strong> industry itself <str<strong>on</strong>g>the</str<strong>on</strong>g> debate c<strong>on</strong>tinues as to whe<str<strong>on</strong>g>the</str<strong>on</strong>g>r formal classificati<strong>on</strong> isnecessary or not - as instanced by HORESTA <str<strong>on</strong>g>the</str<strong>on</strong>g> Danish <strong>Hotel</strong> Associati<strong>on</strong> and <str<strong>on</strong>g>the</str<strong>on</strong>g>Is<str<strong>on</strong>g>ra</str<strong>on</strong>g>el <strong>Hotel</strong> Associati<strong>on</strong>, offering case-studies respectively for and against. Be this as itmay, <str<strong>on</strong>g>the</str<strong>on</strong>g>re are currently moves afoot in a number of world regi<strong>on</strong>s – Scandinavia, SouthEast Asia, Middle East and even Europe – for some form of harm<strong>on</strong>ised regi<strong>on</strong>al system.C<strong>on</strong>clusi<strong>on</strong>s - C<strong>on</strong>sumersWhile all approaches to classificati<strong>on</strong> claim to be for <str<strong>on</strong>g>the</str<strong>on</strong>g>ir benefit, c<strong>on</strong>sumers or <str<strong>on</strong>g>the</str<strong>on</strong>g>irrepresentative bodies are in fact <str<strong>on</strong>g>ra</str<strong>on</strong>g>rely c<strong>on</strong>sulted in <str<strong>on</strong>g>the</str<strong>on</strong>g> process of establishing a system.The report c<strong>on</strong>cludes that systems set up by <str<strong>on</strong>g>the</str<strong>on</strong>g> private sector are far more resp<strong>on</strong>siveto c<strong>on</strong>sumer demand, <str<strong>on</strong>g>ra</str<strong>on</strong>g>pidly recognising new forms of accommodati<strong>on</strong> such as timeshareand resorts, whereas standards and criteria laid down by <str<strong>on</strong>g>the</str<strong>on</strong>g> public sector tend tobe infrequently checked and <str<strong>on</strong>g>ra</str<strong>on</strong>g>rely updated to meet changes in c<strong>on</strong>sumer taste – or indestinati<strong>on</strong> market.More gene<str<strong>on</strong>g>ra</str<strong>on</strong>g>lly, many surveys show that c<strong>on</strong>sumer choice is governed first and foremostby c<strong>on</strong>side<str<strong>on</strong>g>ra</str<strong>on</strong>g>ti<strong>on</strong>s of price and destinati<strong>on</strong>, <str<strong>on</strong>g>ra</str<strong>on</strong>g><str<strong>on</strong>g>the</str<strong>on</strong>g>r than <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> basis of complexclassificati<strong>on</strong> systems of which c<strong>on</strong>sumers have ei<str<strong>on</strong>g>the</str<strong>on</strong>g>r little knowledge or littleunderstanding.C<strong>on</strong>clusi<strong>on</strong>s – Public and Private sector resp<strong>on</strong>sibilitiesIn c<strong>on</strong>clusi<strong>on</strong>, it is important to sepa<str<strong>on</strong>g>ra</str<strong>on</strong>g>te out <str<strong>on</strong>g>the</str<strong>on</strong>g> respective resp<strong>on</strong>sibilities of <str<strong>on</strong>g>the</str<strong>on</strong>g> publicand private sectors in <str<strong>on</strong>g>the</str<strong>on</strong>g> area of <strong>hotel</strong> classificati<strong>on</strong>. As recent events such as SARS,Mad Cow and Legi<strong>on</strong>naire’s disease have shown, public authorities must obviouslyensure minimum standards of safety and hygiene in accommodati<strong>on</strong> establishments.Private sector bodies, being commercially driven, must meet <str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>sumer’s demand forbetter and more t<str<strong>on</strong>g>ra</str<strong>on</strong>g>nsparent informati<strong>on</strong> <strong>on</strong> both products and destinati<strong>on</strong>s. This implies<str<strong>on</strong>g>the</str<strong>on</strong>g> c<strong>on</strong>sistent use of recognised and harm<strong>on</strong>ised terminology.Given <str<strong>on</strong>g>the</str<strong>on</strong>g> interest expressed in <str<strong>on</strong>g>the</str<strong>on</strong>g> survey, it would seem advisable to provide stateswishing to set up a nati<strong>on</strong>al or regi<strong>on</strong>al classificati<strong>on</strong> scheme with <str<strong>on</strong>g>the</str<strong>on</strong>g> necessary tools todo so. It is <str<strong>on</strong>g>the</str<strong>on</strong>g>refore important to devise <str<strong>on</strong>g>the</str<strong>on</strong>g> appropriate methodology taking into accountcultu<str<strong>on</strong>g>ra</str<strong>on</strong>g>l differences between states as <str<strong>on</strong>g>the</str<strong>on</strong>g>y relate to services and facilities, markets andpurpose of t<str<strong>on</strong>g>ra</str<strong>on</strong>g>vel.To be sustainable, tourism must be able to c<strong>on</strong>solidate its diversity, not seek uniformity.Failing this, any attempt at regi<strong>on</strong>al and even global harm<strong>on</strong>isati<strong>on</strong> of what can <strong>on</strong>ly bevoluntary systems would, under <str<strong>on</strong>g>the</str<strong>on</strong>g> guise of clarificati<strong>on</strong>, merely end up creating morec<strong>on</strong>fusi<strong>on</strong>.- 3 -
IND.D.004.16 April 2004I. INTRODUCTIONBackgroundHistorically, <strong>hotel</strong> classificati<strong>on</strong> systems were developed to ensure safe and reliablelodging and food for t<str<strong>on</strong>g>ra</str<strong>on</strong>g>vellers at a time when very few such trustworthy establishmentsexisted. With <str<strong>on</strong>g>the</str<strong>on</strong>g> unprecedented growth of internati<strong>on</strong>al tourism in <str<strong>on</strong>g>the</str<strong>on</strong>g> past fifty years,during which hospitality has reach <str<strong>on</strong>g>the</str<strong>on</strong>g> status of a mature industry, <str<strong>on</strong>g>the</str<strong>on</strong>g> focus has movedfrom c<strong>on</strong>sumer protecti<strong>on</strong> (gene<str<strong>on</strong>g>ra</str<strong>on</strong>g>lly gua<str<strong>on</strong>g>ra</str<strong>on</strong>g>nteed by nati<strong>on</strong>al regulati<strong>on</strong>s and legislati<strong>on</strong>)to c<strong>on</strong>sumer informati<strong>on</strong>. Today, standardizati<strong>on</strong> and competitive marketing of <strong>hotel</strong>services to foreign customers and tourist professi<strong>on</strong>als have emerged as driving forcesfor instituting a local or nati<strong>on</strong>al <strong>hotel</strong> classificati<strong>on</strong> system.With so many people now t<str<strong>on</strong>g>ra</str<strong>on</strong>g>velling, both within <str<strong>on</strong>g>the</str<strong>on</strong>g>ir own country and often far bey<strong>on</strong>d,<str<strong>on</strong>g>the</str<strong>on</strong>g> idea has arisen of devising <strong>on</strong>e single scheme which could be applied to <strong>hotel</strong>accommodati<strong>on</strong> throughout <str<strong>on</strong>g>the</str<strong>on</strong>g> world for <str<strong>on</strong>g>the</str<strong>on</strong>g> benefit of both c<strong>on</strong>sumers (tourists) andt<str<strong>on</strong>g>ra</str<strong>on</strong>g>vel professi<strong>on</strong>als (tour ope<str<strong>on</strong>g>ra</str<strong>on</strong>g>tors and t<str<strong>on</strong>g>ra</str<strong>on</strong>g>vel agents, in particular). Whe<str<strong>on</strong>g>the</str<strong>on</strong>g>r this is infact desi<str<strong>on</strong>g>ra</str<strong>on</strong>g>ble – and indeed feasible – remains a subject of c<strong>on</strong>side<str<strong>on</strong>g>ra</str<strong>on</strong>g>ble discussi<strong>on</strong>.As a result, <str<strong>on</strong>g>the</str<strong>on</strong>g> issue of <strong>hotel</strong> classificati<strong>on</strong> is <strong>on</strong>e that has appeared <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> agenda of<str<strong>on</strong>g>the</str<strong>on</strong>g> World Tourism Organisati<strong>on</strong> for a c<strong>on</strong>side<str<strong>on</strong>g>ra</str<strong>on</strong>g>ble number of years.Most recently, a compa<str<strong>on</strong>g>ra</str<strong>on</strong>g>tive <str<strong>on</strong>g>study</str<strong>on</strong>g> of <strong>hotel</strong> classificati<strong>on</strong> systems (<str<strong>on</strong>g>the</str<strong>on</strong>g> formaldeterminati<strong>on</strong> of <strong>hotel</strong> <str<strong>on</strong>g>ra</str<strong>on</strong>g>tings or categories) was included in <str<strong>on</strong>g>the</str<strong>on</strong>g> WTO Gene<str<strong>on</strong>g>ra</str<strong>on</strong>g>lProg<str<strong>on</strong>g>ra</str<strong>on</strong>g>mme of Work for <str<strong>on</strong>g>the</str<strong>on</strong>g> 2000-2001 biennium, as a specific project (Activity 12:Nati<strong>on</strong>al Tourism Legislati<strong>on</strong>s) under Part B (Documentati<strong>on</strong>) of <str<strong>on</strong>g>the</str<strong>on</strong>g> Secti<strong>on</strong> 7.The WTO Quality Support Committee at its 4 th meeting (Madrid, 12-13 April 2000)recognized that ”in <str<strong>on</strong>g>the</str<strong>on</strong>g> present changing regulatory f<str<strong>on</strong>g>ra</str<strong>on</strong>g>mework for tourism, <str<strong>on</strong>g>the</str<strong>on</strong>g>decent<str<strong>on</strong>g>ra</str<strong>on</strong>g>lizati<strong>on</strong> of government competence for <str<strong>on</strong>g>the</str<strong>on</strong>g> sector and <str<strong>on</strong>g>the</str<strong>on</strong>g> appea<str<strong>on</strong>g>ra</str<strong>on</strong>g>nce of diversevoluntary quality standards applied to accommodati<strong>on</strong> establishments, <strong>hotel</strong>classificati<strong>on</strong> systems:(a)(b)(c)(d)are challenged by part of industry as unduly interfering with <str<strong>on</strong>g>the</str<strong>on</strong>g> marketplaceand free competiti<strong>on</strong>, especially where such systems are established andc<strong>on</strong>trolled by government;c<strong>on</strong>tinue to play <str<strong>on</strong>g>the</str<strong>on</strong>g> role of c<strong>on</strong>sumer guidance as t<str<strong>on</strong>g>ra</str<strong>on</strong>g>diti<strong>on</strong>al categoryindicators;however, c<strong>on</strong>fuse customers because of <str<strong>on</strong>g>the</str<strong>on</strong>g> lack of internati<strong>on</strong>alharm<strong>on</strong>izati<strong>on</strong> and accountability;are requested by a number of developing countries as a regulatorymeasure, especially for small business, and in order to achievecompatibility with tourist-sending countries.”In c<strong>on</strong>side<str<strong>on</strong>g>ra</str<strong>on</strong>g>ti<strong>on</strong> of <str<strong>on</strong>g>the</str<strong>on</strong>g> above, <str<strong>on</strong>g>the</str<strong>on</strong>g> Committee requested <str<strong>on</strong>g>the</str<strong>on</strong>g> Secretariat to carry out acompa<str<strong>on</strong>g>ra</str<strong>on</strong>g>tive <str<strong>on</strong>g>study</str<strong>on</strong>g> of existing <strong>hotel</strong> classificati<strong>on</strong> schemes world-wide with a view to:- 4 -