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The Hong Kong Hotels Association (HKHA), which came into being in August 1961 with eleven founding members, was the brainchild of several managers of that time – such as the world-renowned Peter Gautschi (Peninsula Hotel) and Rudy Choy (The Miramar Hotel) – who had the foresight to create a formal organization to promote the importance and interests of the city’s hotel industry at a time when global travel was taking off.
Back then, the city was home to 32 hotels offering a total of 3,460 rooms in premises ranging from players like The Peninsula Hong Kong, which opened in 1928 and the Miramar Hotel which came into existence in 1957 to much smaller hotels. Within its first year, membership of the fledgling association grew to 15 hotels after a more clearly defined set rules for admission were put in place by its Executive Committee (ExCom).
The body’s inaugural chairman was Hong Kong hotelier, C.W. Young, of the Miramar Hotel and the ExCom decided that for Hong Kong to be a success as a tourist destination, it would require hotels to come together to map out common strategies and goals in areas such as industry apprenticeships and the sorting out of visa problems for staff.
An industry association not only brought recognition, it also made for a stronger combined voice in international hotel associations and enabled privileges like dialogue with government to tackle challenges in the industry. In addition, at that time Hong Kong wasn’t really a tourist destination due to the fact that long-haul travel was difficult and expensive.
Many people came to Hong Kong on shipping lines ships like APL (American President Liner) and P&O and this period began to see major international airline operators such as Pan American Airlines open offices inside The Peninsula Hotel and by 1961, the Hong Kong Tourist Association (HKTA) put the number of visitors arriving in the city at 221,000, a figure which had more than doubled to 458,000 by 1966.
This upward trend prevailed for the remainder of the 1960s thanks to a number of factors including a boom in Hong Kong’s manufacturing industry in the 1950s, the opening of a new runway at Kai Tak Airport in 1958, followed by the installation of a runway lighting system in 1959 making night-time operations possible.
These developments during the 1950s brought burgeoning demand to the tourism sector, which in turn triggered an influx of new operators such as the Hongkong Hilton, The Mandarin and President Hotels. They also sparked explosive overall growth in the city’s inventory of hotels which grew by 76 percent to 5,907 rooms in 1963. This in turn created a surge in demand for local staff and exacerbated the effects of the lack of an apprenticeship scheme creating significant problems which had to be addressed.
It was a hard time for employers and few hotels trained staff at that time while the city’s first and only hotel school in Hong Kong was established by the Rev. Karl K Stumpf from World Council of Churchesʼ Migration Unit in the city.
In an unprecedented move, HKHA members also worked together with a German booking system called “Steigenberger” to compete with the big boys of the time. Its aim was to combat and compete with the seamless operations run by international hotel chains, particularly their well-oiled global reservation networks.
Fortunately, the association was never short of charismatic leaders. The 12-month voluntary role as chairman lured enthusiastic hoteliers who laid the foundations which allowed the industry to grow into the crucial pillar of Hong Kong’s economy it was to become.
One such character who stole the limelight as association chairman was the iconic Rudy Choy, manager of the Miramar Hotel who had served twice as its head in 1966 and 1968. His connections with the travel and tourism industry dated back to the 1950s when he became a hotelier. A debonair man of many parts, Choy was instrumental in the founding of the association and HKTA and spared no effort in fighting for recognition of the hotel trade. He is also widely respected as a visionary and one of the doyens of Hong Kong’s travel industry.
Armed with a wealth of knowledge and contacts, his ambassadorial skills and immense personal charm smoothed the way to winning support not only for the HKHA itself but also from the HKTA and Hong Kong Association of Travel Agents. Under his leadership, the association nurtured cooperation with other trade stakeholders such as airlines, travel agents and government giving the organization a very public profile, sharing his concerns and opinions on tourism development, most notably pushing for Kai Tak Airport to have the capability to receive soon-to-come jumbo jets and immigration reform, moves that were key to the city’s emergence as a global tourism powerhouse.
Looking back, a couple of milestone developments also helped spur tourism growth during this period. For instance, the city played host of 35th American Society of Travel Agents (ASTA) Convention in 1965, an event which attracted about 2,000 delegates from 90 countries and paved the way for an American tourist boom. Also, when Ocean Terminal opened in 1966, British company P&O’s first ocean-going liner, Canberra, berthed at the new facility and annual visitor arrivals recorded by the HKTA passed the half-million mark for the first time in the same year.
Under the inspiring and colourful leadership of the 1950s and 60s the groundwork was laid for a strong and influential hotel association and the organization continued to grow throughout the 1970s as global travel became more popular and less expensive.
A measure of this growth came in 1972 when official inbound tourism figures showed that the number of visitors to Hong Kong hit the one million mark in that year. This trend continued, and within six years in 1978, that figure had doubled to two million.
However, despite this phenomenal rise in tourist arrivals in the city, membership of the Hong Kong Hotels Association (HKHA) remained relatively small, standing at around 20 at this time. However, despite the size of the membership, work continued to make the association a close-knit and effective organization representing the interests of the industry.
In fact, it was not uncommon for members to exchange daily operational intelligence over the phone and meet in person often to stay connected. This level of communication was vital to keep pace with the explosion in major tourism markets in the 1970s including major source markets like curious Americans and Europeans.
At this time, with Japan emerging as Southeast Asia’s biggest market, mainland China remained closed for visitors and regional visitors to Hong Kong were largely made up of affluent travelers from Singapore, Malaysia and Thailand.
The ground-breaking visit to China by United States President U.S. President Richard Nixon in 1972 further spurred global interest in the so-called “exotic Orient” and led to an ongoing growth in visitor arrivals to Hong Kong as an ideal “East-meets-West” gateway.
It was at this point, aged 27, that Larry Tchou from the Hyatt Regency in Tsim Sha Tsui became the youngest chairman of the association to date in 1978.
“It was a ‘small circle’ election and I was asked if I was interested to wear this hat. Frankly, I was given a chance. Most of the seniors there were my mentors like Andreas Hofer of Mandarin Oriental and Felix Bieger of The Peninsula,” Tchou recalled.
The young leader also remembers that at this time there were few hotels managed by Chinese general managers such as the Grand Hotel and the Park Hotel, and while association meetings were quite informal, attendance rates were spectacularly high, standing at more than 90 percent of the total membership.
“At that time, the hotel industry was seen as a pretty new profession in Hong Kong but our spirits were high and we were very united. The aim was to fight for the benefit of the industry benefit and build an acceptance of the importance of tourism industry to government and the wider society,” said Tchou.
The decade also saw a growth of investment in tourism with, for example, such as developments as the Jumbo Floating Restaurant in Aberdeen in 1976 and a year later, Ocean Park. Soon, the city was to reach the landmark of its first one million visitors.
“This was a very big thing indeed because although the volume wasn’t high due to air travel not being at the levels seen in later years, tourism consumption levels were the other way round,” said Tchou.
“We hoteliers worked hand-in-hand to offer good quality service and the highly-anticipated annual gala dinner was an iconic event for members and an ideal opportunity to wine, dine and build a rapport among members, as well as invited guests from the government. In terms of hotel culture, I really adored those senior operators who are truly hoteliers to their core, such as Kenneth Moss and Rudolf Greiner, who brought with them well established international standards in etiquette, cleanliness and the food and beverage business in general. What impressed me the most was their professionalism – and how they made themselves available to guests and listened to their comments all the time,” he added.
When China opened its doors in 1978-1979 nobody had a crystal ball to see the huge wave of high-spending Chinese travelers the city would eventually come to benefit from. Indeed, prior to the restoration of Hong Kong-Guangzhou through-train services in 1979, Tchou was invited to join an inspection tour tailor-made for high profile business stakeholders including the HKHA.
It was an eye-opening trip which took in Shenzhen, Guangzhou, Shanghai, Nanjing, and Hangzhou and came at a time when Hong Kong was very much a mystery to mainland Chinese in terms of diet and language, differences which seem a million miles away today.
Also at this time, the HKHA’s executive director, the late Manuel Woo was very much committed to hotel staff training and it was he who formed the Human Resources Committee which still plays a key function in the association. Apart from the education and training of members, the association left no stone unturned in building its brand.
According to Tchou, none of Hong Kong’s universities in 1970s had a hotel section in their faculties and public misconceptions about the hotel profession limited their thinking to the belief that only table-waiting jobs were available.
As a result, the association began a programme to nurture and lure people to the industry and organize a systematic syllabus for education. In the beginning, it advocated training for rank-and-file staff by encouraging the government to allocate resources at the time Tchou sat on the Hotel Catering and Tourism Training Board of the Vocational Training Centre (VTC). In addition to hotels and tourism, the VTC also provided training in a range of 13-15 industries such as insurance and motor mechanics.
“The vocational training idea was to give opportunities to young people who didn’t go on to further education after high school, it allowed them to pick up a skillset and find job opportunities. Educating the next generation is our paramount mission because manpower continued to be an issue which presented headaches,” said Tchou.
All this work helped make Hong Kong hotels a role model for other countries thanks to the fact that the association embodied a spirit to make hospitality a profession to be proud of.
“My motto is ‘make it a career not a job’ and my advice to the industry is to organize fast-track career paths for the younger generation so they don’t have to wait for upward mobility. Of course, some may fail along the way but you have to be bold enough to give them a chance, just like the HKHA let me assume the chairman role when I started,” he added.
As the 1980s beckoned and the Hong Kong Hotels Association (HKHA) had become an increasingly important voice and lobbying vehicle for the sector, it was clear the time had come for the organization to spread its wings.
A deepening and extension of mutual cooperation with other bodies such as the Hong Kong Tourist Association (HKTA) who shared the goal of addressing the challenges inherent in an industry growing at breakneck speed was required to address issues like staff shortages, burgeoning tourist arrivals, the demands of a thriving economy and Hong Kong’s role as ‘Gateway to China’, all of which placed huge and growing demands on the hotel industry.
The extent of this growth as the city entered the 1980s was clear for all to see as hotel room occupancy rates regularly topped 90 percent, prompting the association to assert in its 1986-87 annual report that there was a pressing need to recruit a reservoir of some 10,000 trained staff to meet surging demand.
This was an exciting time for Hong Kong as infrastructure development powered forward at breakneck speed with the construction of a host of new luxury hotels in the city. Significantly, the Tsim Sha Tsui East district was designated as a new tourism zone which brought the opening of five new 5-star hotels, taking to 11 the total number in the Tsim Sha Tsui area as a whole.
Across Victoria Harbour on Hong Kong Island, it was a similar picture, with five-star hotels opening at a frantic pace in Pacific Place and along the newly reclaimed Wan Chai waterfront. It was abundantly clear that the booming 1980’s economy had fuelled an unprecedented growth in tourism and that in the coming years – as the 1997 handover loomed – that the hotel industry was going to be a key pillar of the city’s economy as China’s opening-up reforms of the 1980s exerted their full effect on the “Fragrant Harbour”.
The time had come for veteran hotelier Rudolf Greiner to take on the role of HKHA chairman at this crucial period for the industry as Hong Kong braced to take advantage of a vibrant and exciting time at the very heart of the thriving economy, not only in the city itself but that of the neighboring Guangdong Province.
Greiner led the association from 1984 until 1988 and as general manager of the new 600-room Regent Hong Kong which opened in 1980, he brought with him years of expertise garnered from Hilton hotels in the Caribbean and Latin America.
“Owned by New World Group and managed by Regent Hotels – founded by Robert [Bob] Burns, Adrian Zecha and George Rafael – it (The Regent) was a magnificent property in which no expense was spared to create one of the finest hotels in the world in terms of location, views, rooms, world-class restaurants and public spaces,” Greiner recalled.
“I represented this level of service delivery and was dedicated to maintaining such standards in Hong Kong’s increasingly powerful hospitality industry, as well as being part of the development of an educational and training infrastructure which would secure the future success of the sector,” he added.
With the industry expanding at such a fast pace and a host of top international hoteliers arriving in the city to take up key roles, the HKHA became an important voice for the industry as well as a source of counsel and camaraderie for its members. However, there was no lack of challenges as the Hong Kong grappled with the stresses and strains of maintaining its position as a global front-runner in building and running top-class hotels.
Greiner said: “There was no shortage of people looking for work at that time and language, cultural differences and expectations required careful handling as we sought to create a team which was capable and confident enough to deliver an exemplary level of quality and service, with a Hong Kong flavour. The possibilities were as endless thanks to the resourcefulness of Hong Kong people, who were willing to work hard, were eager to learn and create a better life for themselves and their families, it was a magical time to be in Hong Kong.
“The HKHA’s role was also increasingly to drive the development of the industry through education and vocational training facilities such as Haking Wong Technical Institute and the Vocational Training Centre which were created to build a much need pool of talent and provide opportunities for local people,” he added.
During his time at the helm, the HKHA was seriously involved as a liaison partner with the government enabling the development of the city’s first hotel training centre in Kowloon.
“The government had a limited budget, so together we donated hotel equipment, beds, linen, cleaning supplies and so on to help with the training process. We also lent them expert department heads to help with the training. Moreover, we also supported and worked closely with the development of Hong Kong Polytechnic’s new four-year bachelor degree course in Hospitality Management launched in 1988.
“To me, my greatest achievement as the chairman was to play a part in setting standards in the quality and professionalism of the Hong Kong hospitality industry, and in the education and development of its talented people. Hong Kong can be justly proud of its industry and global reputation,” said Greiner.
This crucial training and education infrastructure was not limited to Hong Kong alone, and also in the late 1980s the association rolled out a Cross-Border Chinese Student Programme. This made it the first industry association in town to bring in mainland Chinese students – chiefly from the Greater Shanghai area – to the city to further their education. The students would spend two to three months studying at the university and a further three months of training in various hotels.
The programme was the vision of association executive director, Manny Woo, who was the driving force behind the initiative and held a firm belief in the mantra that “If China prospers Hong Kong will prosper.” Together with Greiner, Woo visited a number of cities in the Greater Shanghai region including Hangzhou and Suzhou to interview students. Eventually, six to seven batches of up to 28 students would come to Hong Kong for its six-month programme.
Another major triumph of the HKHA in the mid-1980s was winning the battle to revoke a decision by the Airport Authority to abolish its Kai Tak Airport Hotel Welcome Service. The top-of-the-range service offered by the association offered weary travelers a welcome and seamless service on arrival in a hot and humid city after long-haul flights from New York or London with a chauffeur-driven, air-conditioned ride to their hotels.
The success came after months of meetings with the then Airport Authority chief, Dick Seagal, to convince the authority that this was an asset for Hong Kong. In his drive to retain the service, Greiner even engaged the support of Lydia Dunn, then a senior member of the Executive Council and Legislative Council of Hong Kong. Visitors arriving at Hong Kong International Airport to this day, can still enjoy this luxury service.
All this – and more – made the Hong Kong hotel industry the envy of the world the 1980s and 1990s. Its leading hotels at the time, including the Mandarin, The Regent and The Peninsula won a series of international awards and the city had set a new international benchmark for luxury hospitality.
The tremendous growth of the Hong Kong Hotels Association throughout the 1980s and 90s created a reality in which – in addition to playing a key role in making visitors welcome – the organization was transformed from being a tiny voice in the wilderness to one of the most important in the city and the region as a new millennium beckoned.
Equipped with a knowledge built up before, during and after his first term as chairman of the association, Felix Bieger, a doyen of the industry with a deep understanding of the hotel sector, took the helm for a second time between 1992 and 1994.
After two stints in charge over the years, Bieger counts himself a fortunate man to have witnessed not only the rise of Hong Kong’s hotel industry, but the rapid development of the city in general.
“What set this term apart from my pervious one in 1975 was the fact that we had more hotel members which meant more input as a chairman. I felt very pleased and honored because it is an important role that gives you considerable respect and lifts your position in terms of access to Hong Kong Tourist Association (HKTA),” Bieger said.
“Having associations in a real tourist hub and important destination gave us the ability to bid for the hosting of international events like ASTA Congress in 1965. The presence of an association such as ours guaranteed a certain standard, in the same way HKHA members must meet criteria and pass site inspections,” he added.
Of course, one event stole the Hong Kong limelight during this decade, the city’s historic return to Chinese sovereignty on July 1, 1997. The years leading up to this important event brought a considerable uptick in tourism arrivals from nearly nine million in 1993 to 11.7 million in 1996 – a significant number of them from mainland China.
Bieger said, “We were living in interesting times as the international media was never slow to remind us. The spotlight was on Hong Kong and increased the number of people from all parts of the globe who wanted to visit. The demand on our facilities and services put a great strain on everyone in the hotel industry and therefore, I urged our members that the earlier we started putting in place all that was required to ensure success, the better. Don’t forget, we also had the Canton Fair so everybody flocked to Hong Kong in spring and autumn to obtain China visa.”
“Room rates and occupancy levels went up before 1997 prompting representatives of the Japanese market to complain and the HKTA sent a delegation there in order to rebuild Hong Kong’s image as an international destination. I joined this mission and it was a successful trip which reassured the Japanese travel trade and consumers that we were grateful for their business and committed to pursuing a close connection with the country,” he added.
The issue of room rates was a perennial one in HKHA annual reports at this time and Bieger said it had also been at the forefront of issues in the 1970s when some hotels were so keen cut rates to gain market share that “house full” notices were not uncommon. He warns that every section of the travel industry is based on forward planning and sudden fluctuations in hotel rates can undermine the whole foundation of the package. This is something which booking agencies must take notice of to maintain customer satisfaction.
The industry also faced challenges in the area of competing for new recruits in the domestic market and was becoming increasingly dependent on being able to offer not only quality training, but long-term career prospects.
Bieger pointed out that the hotel profession wasn’t exactly regarded as top career choice for young people at this time and stressed that when it comes to such matters pride is vital in the service industry.
“Undoubtedly, hotels are looking after their staff well and our mandate to provide members with education is a very important component of the HKHA’s overall role. It is very important for our organization to keep our members together, informed and educated in an updated manner. I think Hong Kong can proud of itself as it has some of the very best manpower,” he said.
Bieger added, “People are motivated and with our network of hotel schools, vocational training centres, educational programmes and international hotels coming into Hong Kong, we are a very good training ground. One just needs to look at how many young Hong Kong hoteliers there are around the world.”
Another key development during this period came in 1993, when the association made the final mortgage payment on the mortgage on its current office in Silvercord Tower II at the heart of Tsim Sha Tsui. This was an illustration of the executive committees’ foresight in approving the investment, thus leaving the association free from the vulnerability of being at the mercy of landlords and escalating rents.
It also allowed it to focus its resources on the comfort and safety of guests. In the mid-1990s when government had the new Hotel & Guesthouse Ordinance ready to put forward, the association was of the firmly held the view that it must exercise greater flexibility in its application and therefore supported The Federation of Hong Kong Hotel Owners in its effort to solve many problems created by this ordinance.
Ultimately, a much more flexible and reasonable approach to the application of the new law was adopted and Bieger believes this success was a measure of the organization’s clout and its expertise is using it: “Very few professions have what we can offer in our industry,” he said.
“From the time our guests step into our hotels and restaurants to sleep and eat, the way we handle things is comparable to a manufacturing process, from raw material to finished products, all under one roof. One can see the service delivered and result immediately once the guest departs.
“In short, the HKHA is one of the luckiest hotel associations as we are in one, without any arguments in it because we all worked for the good of the industry. I think our industry in Hong Kong is very fortunate to have very good owners who crave industry quality and safety. Take hygiene as an example, it is the very top priority of the trade and something of which we can be very proud,” added Bieger.
The first decade of the 21st century proved the best of times for Hong Kong’s tourism and hotel industry and placed a rocket-booster under the development and momentum of the HKHA as an organization allowing it to celebrate a number of historic milestones.
Among them was the association reaching the 100-member mark, hitting a record-high new supply of hotel rooms – 14,024 rooms in 2004-2006 – as well as the commission- based Hotel Reservation Centre recording its best-ever performance in terms of revenue.
At this point in time, when the post of chairman became available, experienced Canadian hotelier Mark Lettenbichler wasn’t sure if he could strike a balance with his full-time work and decided to give it a try for one term. Eventually, he ended up serving for eight consecutive years, earning him the accolade of becoming the association’s longest serving chairman.
Looking back, Lettenbichler says that there were lots for the association to do, especially tackling the post 1997-handover tourism decline, the Y2K problem, the dotcom bubbles, an outbreak of SARS, the Individual Visit Scheme (IVS), a burgeoning mainland China market, the Asian financial crisis of 2008 and a year later a swine flu pandemic.
Lettenbichler says that as well as playing a major role in every aspect of the industry’s endeavours, the association also received great support from industry partners like the Hong Kong Tourism Board (HKTB) and Tourism Commission. The importance of these partnerships was crucial in coming up with strategies to deal with what were undoubtedly a series of major challenges. For instance, we knew that the city had reinvented itself but really needed to reach out and campaign globally to let people know Hong Kong hadn’t changed after 1997, in fact, it was bigger and better than ever. To this end, we extended ourselves with travel industry partners like the HKTB, the Tourism Commission, the Travel Industry Council, the HK Association of Travel Agents and the HK Japanese Tour Association.
“We met constantly to set up programmes which would secure not only the future of the city’s hotel industry, but the overall growth of Hong Kong as a whole from an infrastructure standpoint,” said Lettenbichler, adding: “SARS is something we will never forget. The experience was unprecedented and had a major impact with hotels running single digit occupancy rates and seeing empty restaurants. Thank goodness this didn’t last long. The upside of the crisis was that it promoted solidarity and resilience across all our trade partners.”
For example, the association pumped considerable resources into their “Be our Guest” campaign, offering free room nights and discount hotel rates. The campaign was well-received and produced a bounceback in fortunes at the end of 2003 and in 2004. What followed were a few years of rebuilding in which were a success for the sector.
Lettenbicher said: “The financial crisis in 2008 dampened international and regional business travel and towards the end of my term and swine flu struck us. It was not as severe as SARS but was a good learning curve for Hong Kong in terms of being better prepared for future health crisis.”
Shortly after SARS, the association had formed the “Hotel Food Hygiene and Safety Task Force” to initiate new measures to protect and improve safety standards of the industry to higher than statutory levels through cooperative efforts with suppliers and the establishment of a monitoring and certification system.
Lettenbichler remembers: “We met regularly, especially after SARS because there was a need to keep up to date. Minutes of the task forces went out to members so even if they couldn’t take part in it, or even if they didn’t want to take part, they would not be left out of the information loop and the recommended steps to take.
“In my first two years, we met our members continually, not just in our meetings but we also tried to do group gatherings of members within the same district. The gist was to find out what they needed and didn’t need, and to see if we could support them, get their consensus of what HKHA should do from an overall strategy point of view. Seventy percent of our member said they needed this and we put that down as our target for that year,” he added.
The association’s horizons were also expanded at this time, for example hosting the First Asia Pacific Hotel Association Forum and Asia Pacific Regional Hotel General Manager Forum at HOFEX. Hotel associations from places like Japan, China, Macau, and Singapore attended. These events enable regional operators to share their best practices in marketing and sales, as well as public relations campaigns. In addition, the association also invited numerous guest speakers from the industry in areas such as education, sales marketing, IT, operations, F&B and technology. Not to forget the annual Gala Ball, a black-tie event attended by hotel general managers and their spouses, as well as senior government officials like the Chief Executive and Financial Secretary.
Lettenbichler made clear the importance of being close to members and building a trustworthy relationship between them: “Unless you gather, interact, and have dialogue and participation, you can’t create a successful culture. That’s what we did, everyone was highly active. You can’t lose your members as they pay fees for a reservation system, so we had to create value for them, a good reason to be a member. It’s changed today but constant communication with members in my time, listening to their needs was always as the number one priority,” he said.
Sterling work by chairman down the years of building saw the association build up a tremendous amount of respect and thrust Hong Kong’s hotels into a position of prestige. Lettenbichler believes the city is undoubtedly a major international player: “We had a lot to handle during this period and the experience we gained has allowed us to cope with ongoing geo-political situations and maintain the city’s rightful position as at the top of the world’s hotel industry,” he said.
The array of events which has gripped Hong Kong over that past decade – not least the ongoing Covid-19 pandemic – has slowed the pace of hotel development, but thanks to the hard work put in by the association and its members over several decades, the city has been able to ride the storm and cement its place in the industry’s international hall of fame.
Over last sixty years, the chairmanship has been dominated by expatriates but a paradigm shift has taken place in last ten years with higher participation from homegrown hoteliers, namely Victor Chan (2012-2016), the first-ever chairlady Rebecca Kwan (2018-2020) and current chairman, Peter Wong, who took the association forward and helped Hong Hong’s hotel industry become one of the most successful in the world.
After graduating in 1985, Victor Chan chose hotels as his career and hasn’t looked back. Thoughts of taking up chairmanship of the HKHA had never entered his mind but when opportunity knocked, he seized it with both hands.
With 27-years of expertise in the industry plus his past devotion to the association – working as an ExCom member, chairman of the Human Resources, Education, Training & Scholarship Development Sub-Committee as well as serving as its first vice chairman, it was clear he was more than equipped for the job.
“There are no short cuts and as I found out throughout my career – you have to get your hands dirty. The rationale behind my decision (to take up the chairmanship) was simple: to give back to the industry which had given me so much. Armed with this approach to leadership of the organization, I was able to develop and inspire a focus on education and training to give new generations who are interested to join the hospitality industry the chance to do just that,” said Chan.
“No-one would disagree the wide spectrum of perspectives the responsibilities the post brings with it because tourism is regarded as one of the four big pillars of the local industry. Indeed, my exposure to the varied perspectives required to carry out the job well was enhanced by the number of hats I wore during my four-year service as chairman, for example, being a member of HKTB Board, the VTC Board and the Tourism & MICE Task Force,” he added.
In recent years the tourism sector has experienced a huge amount of development, with new infrastructure projects like the High Speed Rail Link and the Hongkong-Zhuhai-Macau Bridge taking place along with the opening of many new hotels and Chan believes this growth will bring fresh challenges, which he relishes.
“From the practical perspective of hotel operators, these developments definitely spur our interaction with the Greater Bay Area and may drive incremental traffic. But the flip side is that the convenience of travel such projects provide, the average length of stay may shorten and as such we need to assess further the long term impact they will have on hotels,” said Chan.
Another interesting phenomenon he has observed is the number of property developers have also entered the hotel market and Hong Kong has seen more conversions of office, residential and industrial buildings into hotels after Town Planning Board’s approval for change of land use. Hence, many more new players being developed on smaller sites and with fewer than 100 rooms per hotel. As a result of these developments, the association created a new level of member, the so-called “Boutique Hotel” targeting premises with fewer than 100 rooms.
Chan contends that it is not practical to charge them the standard membership fee the big hotels are paying, so the phenomenon of these homegrown labels should be a celebration of the diversity of accommodation Hong Kong offers and the record-high membership numbers, despite exit of some traditional members like The Excelsior.
Looking back, Chan ranks the Occupy Central protests and the rise of OTAs (online travel agents) as major challenges during his tenure which have had a dramatic effect on hotel operations. He said that during the social unrest the association invited the police to give them advice on precautionary measures to tackle unexpected events so members could solve negative situations more quickly.
“In view of the diminishing revenue from HRC (Hotel Reservation Centre) since 2010 -11 triggered by domination of OTAs in the market, the association tried to develop its own booking engine – iStay. Unfortunately, it wasn’t successful as we realized such operation required an immense amount of resources and investment. The whole issue was not that simple as it demanded continuous maintenance and huge room inventory. In the end, the association suspended the development of iStay program and subsequently the HRC closed in 2017.
Chan also points out that solving the perennial problem of manpower supply is ongoing, but that the association is making headway. He insists that the industry must work together with relevant academic institutes to provide adequate training programmes and upgrade internships to improve the retention rate among graduates.
He added that the enactment of Hotel and Guesthouse Accommodation (Amendment) Ordinance in 2019 finally improved the existing licensing regime and facilitated enforcement actions against unlicensed hotels and guesthouses adding that it puts the establishment of guest safety and a clear distinction between a licensed hotel and a licensed guesthouse which visitors understand on the right track.
Chan believes the post-Covid-19 world will evolve into a “new normal” which will include the application of artificial intelligence and robotics to re-build the confidence of travelers in terms of hotel safety and hygiene, meaning less direct contact with staff during the entire stay in the hotel. He says that the recovery of the tourism industry will take some time and in view of current hotel supply situation (85,000 rooms+), he foresees a slowdown in hotel investment in Hong Kong.
“We have 140 members but participation remains low owing to their busy day-to-day operations. It’s vital to figure out ways to drive their engagement and incentivize them to give opinions to us. Apart from formal meetings or receptions, we also have our executive director to pay regular visit to members’ offices and hear their voices,” he added.
The Role of a Credit Manager in the Hotel Industry
The credit manager, sometimes referred to as credit collector, credit analyst, credit administrator, credit representative, or risk analyst, performs multiple tasks within a group and or a finance shared service center within the hotel industry. The Credit Manager analyzes the financial history of a company, travel agent, embassy, and airline, to assess how much of a risk they would pose to hotels. This role may include explaining payment schedules to properties/hotels in connection with the collection.
JOB SCOPE:
It is the credit manager’s job to handle and monitor all matters relating to customer credits and oversee the collection of outstanding debts. The Credit Manager ensures that all accounts receivable (AR) are properly billed and payment is received on a timely basis.
This position is responsible for the entire credit granting process, bill collection, including the consistent application of a credit policy. It is the Credit Manager’s job, to manage and ensure that the hotel achieves optimum performance and reaches the required credit targets. Periodic credit reviews of existing customers, and the assessment of the credit worthiness of potential customers with the goal of optimizing the mix of company sales and bad-debt losses.
DUTIES & RESPONSIBILITIES:
Financial
Operational
Administration
Monthly Credit Meeting – HKHA
The Credit Committee is comprised of credit managers from member hotels in the Hong Kong Hotels Association (HKHA). The committee meets once a month, where Credit Managers discuss and review current and relevant issues in credit information affecting the hotel industry. It is the objective of the committee, to set up a network and link up Credit Managers of member hotels, in order to obtain credit references periodically. The credit committee encourages credit managers to make good judgements and feel valued by participating in meetings, forging good relationships and involvement in credit management, among other credit-related functions.
The engineering team in a hotel has always been unofficially placed in/considered the least important group. The functions and duties of hotel engineers were considered trivial when compared with other job functions – Rooms, Food & Beverage and Sales & Marketing. Oftentimes, the work of the Engineering Department remains unnoticed until a sudden power outage, a trapped lift, or a clogged drain, causes trouble and frustration with guests. Engineering springs to action and receives brief recognition. Besides, most of the team members were craftspeople coming from the marine industry. They got promoted to senior ranks or supervisory level through continued efforts. Their role and contributions were therefore diminished.
As technology changes and advances at warp speed, the hotel industry continues to adapt to. With these developments, the jobs and functions of the different departments in the industry have also evolved and changed to become more complex yet streamlined. The Engineering Department has seen many of these developments in the way it functions and redefined the jobs of the engineers. Engineers are no longer limited to repairs and maintenance. The Engineering Department’s responsibility has extended to such areas as strategic asset management, energy management, and technological innovation. Today’s hotel engineers are responsible for improving the hardware ranging from building design, landscaping, lifts, in-room amenities, in addition to traditional functions and fixtures, building systems like heating, ventilation and air conditioning, electrical installations, plumbing and drainage, kitchen equipment and other behind-the-scenes equipment.
Energy costs account for a large amount of hotel expenses. The cost & usage, management and conservation of energy have brought a new challenges to hotel engineers. Meanwhile, heightened awareness towards corporate social responsibility and sustainability add to the complexity of these challenges. The job of sourcing and implementing cost and energy saving measures, while keeping up with the ever-changing technology keeps hotel engineers on the edge of their seats.
The digital era has ushered in new and exciting changes and developments in the hotel industry. Hotel engineers find themselves in a constant race to meet higher demands and expectations from hotel guests. Today’s hotel engineers are knowledgeable and skilled experts in digital technologies like Artificial Intelligence, Augmented Reality, Virtual Reality, robotic applications, Facial Recognition.
Hotel engineers are responsible for routine operation and preventive maintenance work. They are also expected to formulate various policies and procedures, which cover but are not limited to outsource policy; health and safety policy, energy-saving policy, wastewater management procedure, indoor-air quality management procedure, fire, health and safety procedures. The new hotel engineer is expected to provide traditional hands-on operation and maintenance work but is also a highly educated and skilled individual, with professional qualifications, to meet the increasing demands brought on by advances in the field of engineering.
The hotel engineer must be able to work independently and as part of a team and should ideally possess the following qualities and attributes:
The hospitality industry is unique and dynamic. It has become a most sought-after workplace for individuals who are energetic and thrive in a fast-paced work environment, passionate about diversity, enjoy social interaction. Working in a hotel is both enjoyable and rewarding. The constant and unpredictable changes and developments provide exciting challenges that motivate us to stay focused and driven towards the pursuit of excellence in our work and in service to our guests.
The daily job routine of the Housekeeping Department can be categorized into 3 major areas: cleaning of guest rooms, cleaning of public areas and, uniform and linen room-management.
In addition to the aforementioned areas, Housekeeping may also be required to handle the cleaning and maintenance of the swimming pool and fitness areas, as well as other entertainment facilities for guests’ use. It is also the Housekeeping Department’s responsibility, to liaise with various vendors/outside contractors, to maintain a wide range of services and tasks on a daily basis. Some of these include pest control, exterior wall & window cleaning, landscaping, florists, fragrance service, festive decoration, laundry and dry cleaning, etc.
The Housekeeping Department is the backbone of every hotel. It plays a pivotal role in providing round-the-clock service and experience – from the moment, when a guest enters the hotel, the first impression of a clean and impeccably maintained hotel lobby, the vision of an alluring floral centerpiece in the foyer, the infusion of a fresh, lingering scent, leading the guest all the way to the guestroom. All these enjoyable and memorable experiences can be attributed to the diligence and devotion of the Housekeeping team. During a guest’s stay, it is the Housekeeping team’s responsibility, to understand each guest’s preferences, in order to provide a personalized, “home away from home” experience.
In these unprecedented times, coping with the COVID-19 pandemic, the Housekeeping team serves a new role as caretakers of all guests, staff and hotel premises. In addition to normal cleaning routines, stringent cleaning and sanitizing of guestrooms and public areas are being undertaken in a concerted effort to stay vigilant with hygiene and cleanliness. Room Attendants are required to sanitize furniture, bathroom fixtures and frequently touched areas/equipment; diluted bleach is poured into floor drainages for enhanced virus prevention, in all guest rooms. Meanwhile, in public areas of the hotels, Housekeeping staff employ frequent sanitizing of toilet fixtures, lift buttons, escalator hand rails, door handles and other frequently touched points. More than ever, the health and safety of all hotel guests are of paramount importance.
Prior to the 70s, guest room cleaning was separated into 2 parts: “Dry” and “Wet” areas. Dry cleaning comprised of making up beds and replenishing room amenities, wet cleaning involved bathroom cleaning and dusting. Newly hired housekeeping attendants were required to acquire wet cleaning skills before moving on to dry cleaning skills. This concept of dry and wet cleaning phased out in the late 70s. By this time, a shortage of manpower for “dry cleaning” tasks, mandated a change in Housekeeping and with the arrival of more international hotels to Hong Kong, a new “western style” of housekeeping was introduced. In 1984, the first hotel training facility center was established in Hong Kong, where trainees received comprehensive training in all areas of housekeeping.
Hotel Trivia: Did you know?The year 2020 dealt a huge challenge the world had never imagined and encountered. From the standpoint of a hotelier, our commitment and social responsibility to ensuring a safe environment for our associates and hotel guests remain paramount on our agenda. With newly implemented sanitization protocols, fortified cleaning products, technological breakthroughs, speed of information sharing, and a proactive mindset, our housekeeping teams remain ready and able to react and respond effectively and swiftly to present and future challenges.
We are all committed and ready to welcome back Hong Kong travelers and continue to deliver top-notch hospitality experience, for which we are world renowned – Asia’s Top Travel destination.
The hospitality industry attracts people-oriented individuals, committed to providing services that involve a great deal of human touch. In order to succeed in this field, it is imperative for an individual to possess five distinguishing characteristics including commitment, great people skills, teamwork and leadership, attention to details, and a positive mental attitude. Creating memorable guest experience time and time again significantly enhances the overall brand image and provides a great overall representation that is crucial to the success of the business.
The HR department is the “heart of the hotel”—where team players provide the manpower and equip them with the knowledge, skills, training and tools to function in their own jobs, within their own units, and together as a team, in order to provide a standard of service excellence for their property. The committee created a platform for the Hotels’ HR members, to connect and share their best practices and ideas to cope with the ever-changing business environment.
In continuing efforts to stay current and up-to-date with the latest operational requirements and under the new normal, the committee organises regular meetings with Hotels’ HR members and invites the distinguished guests from different professions to share relevant information through presentations and webinars. The 4 major areas of concentration/discussion:
Presentations & Webinars
Some of the topics for discussion and presentation include:
Education & Training
The following training sessions were offered to all employees at all levels (co-partnered with SGS):
The committee acts as a bridge between hotels and school partners, to promote the development of young talents entering the industry by coordinating and facilitating the process for yearly industrial placements.
Staffing, Compensation & Benefits
The committee conducts regular industrial surveys throughout the year, to provide member hotels with relevant information to help them maintain their competitive edge.
The following seminars were arranged, to address concerns raised by the hotels’ HR members:
Health & Safety
One of the top priorities is the wellbeing and safety of hotel employees. The design of health and safety management framework helps to prevent work-related accidents. Seminars were conducted for Hotels’ HR members to better prepare them for their roles in supporting and promoting workplace health and safety initiatives:
Hotels are encouraged to attend the annual Hong Kong Safety & Health Awards organised by Occupational Safety and Health Department. It was created to provide an opportunity for hotel employees to share their best practices and learn from other industries, particularly catering businesses.
Sports & Recreation
The committee organises various fun activities throughout the year, to connect people from different hotels while creating many memorable and happy moments connect people. The Hong Kong Waiters Race which originated in France at the beginning of the 20th century, was created to promote recognition of the waitering profession in Paris. Today, it is one of the highlights in the industry’s annual calendar of events, with enthusiastic participation in the races and cheerleading performances by its members.
The popular 7-a-side Soccer Tournament, attracts a large number of entries with most of its member hotels fielding competitive teams. The tournament not only generates a lot of talks within the industry but also provides boasting rights for ‘being the best in Hong Kong’.
Here are some moments from the various initiatives organised by the sub-committee:
Waiters Race
7-a-side Soccer Tournament
Singing Contest
Mahjong Competition
Basketball Competition
Bowling Competition
What’s more?
The hospitality industry is an exhilarating place to work in and provides ample opportunities for young talents with passion and purpose, to excel and broaden their horizons. There is never a dull moment in the day of a life in hospitality.
Ultimately, the committee serves as a facilitator, bringing everyone closer together with a sense of common purpose so that the hotel industry remains healthy and open to friendly competition especially in these uncertain times.
Over the course of 2020, the hospitality industry has faced unprecedented challenges that has never been seen before. For Hotels’ HR members, the priority is to adjust to the current reality and come up with a strategy that balances business continuity with the health and happiness of its people. This means being aware of the most pressing challenges on business and people’s needs, as well as finding effective solutions.
Introduction
Security plays a vital role in the hotel industry. A well-established security system instills confidence, trust and peace of mind for the guests and allows for smooth and sound operation of the hotel.
The role of the Security Department in a Hotel
The Security Department is responsible for protecting the life and property of hotel guests, visitors, and members of staff, while safeguarding the assets and interests of the hotel. Their responsibility includes establishment of security plans; implementation of security policy and procedures, security infrastructures, installations and equipment; monitoring and surveillance system; monitoring fire control panel; responding to fire alarm; physical security control; access control for personnel and vehicles; risk control and loss prevention measures; patrolling the hotel premises; and boundary and building inspections.
The Security functions cover the challenge, precaution, preventive & corrective risk- control measures and damage control for:
Challenges
HKHA Security Committee
The HKHA Security Committee consist of members who are elected by security managers of HKHA member hotels. The following are some of the highlights of their activities:
Quarterly Security Managers meeting
Visitations – open to all members
Certificate of Merit Presentation
Project VanGUARD
Project WeGUARD
Fire Services Department
Security tips
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