Editorial

No Audit Required

The World’s greatest sporting spectacle drew to a close in July after 39 days of battle, with some South American teams this often this meant literally, but if the Football World Cup drew anger from genuine football fans, the immediate aftermath raised the blood pressure even higher, more on that later. Yet forgotten in the mayhem that was orchestrated by Footballs Governing body and its Machiavellian leader, the value or otherwise the competition brought to the travel and hospitality industry has been largely forgotten. Though no doubt when the sun sets, careful reflection mixed with an array of data and financial analysis will reveal whether hosting such an event contributed to both an industry and an economy or whether it was a hindrance. The latter is often the case but then again, in the days of fake news and careful work by spin doctors, even black can be made to appear white.

The choice of the USA as the host country in conjunction with Canada and Mexico was hardly contentious, initially that is, perhaps viewed as a safe bet compared with the previous choices of Russia and Qatar. Russia used the event akin to how Hitler used the Olympics of 1936 and had already made a lap dog out of FIFA. Qatar was bizarrely chosen when it had zero football culture, but it does have lots of cash; it bought its bid and in fairness delivered a good event, but one that differed widely from what it initially proposed, promised and bid for (least we forget). Perhaps an early indication of rules being there to be broken or changed when someone decides they need to be changed. Russia probably benefitted from an influx of tourists i.e genuine football Fans, who would never otherwise go to the country, though whether this in fact occurred one will never know such is the massaging of the facts in Russia. Qatar also will have gained new visitors in record numbers, though whether they helped fund the almost entire new infrastructure that was required to play host is again a question that will never have an answer.

Eight years ago, few people would have guessed how the many people’s sentiment towards the USA would have changed so dramatically and the problems the country would create on allowing travel for people to even participate in the event let alone watch it. This is, it should be pointed out, not true of Canada (largely) or Mexico. Those problems soon began to manifest as American immigration ran the rule of who they would and who they wouldn’t let in to the country and that included match officials and team officials; a red line had already been passed in many people’s eyes.  The initial optimism shared by the American hospitality industry moved quickly to one of pessimism and this manifested in many forms.

So, if the aforementioned is the background to a colossus of a sporting event, then who were the winners and who were the losers?

One of the reasons why the USA, Canada and Mexico were chosen as hosts, baring in mind that the USA got the bulk of the matches and was designated the main host country, was that unlike Qatar, new infrastructure, especially stadia, were already in existence and these stadia ranged from iconic to breath taking. Modern, spacious and with a huge capacity to accommodate those willing to pay the extortionate ticket prices FIFA needed to charge if the incumbent power brokers in it were to get re- elected. More on that later. There can be no better stadia in the world though the ones that perhaps gave the best overall impression were those in a more downtown location where the party atmosphere could be confined e.g. Atlanta, Boston, Seattle whilst some of the others, whilst top scoring in the “wow” factor, were clearly not built with connectivity in mind for those not driving. The box was ticked for the green credentials – sort of – and the expansion of the carbon footprint new infrastructure would create was limited; top marks on that score.  Top marks must also go to the American people who, though not having seen (tribal) sport of this nature prior, were as courteous, polite and welcoming as they always are. Indeed, for those cities who hosted matches, it was almost as if “free entertainment” had come to town in the form of the many fans of different cultures from across the world, or those few who could afford it and who could gain entry to the country. Whether they spent as much money in the host cities as FIFA promised they would is an entirely different question. The “’early polls”” indicate that from a tourism perspective, the host cities will be unlikely to see either short or long-term benefit from being such good hosts. The Canadian Hotel Association for example says that its initial figures show that hotel bookings were below the previous June and July, though equally, this can be down to global economic factors created by their neighbours to the south. The American Lodging Association meanwhile said 80% of its operators were also trading below the previous years level, though again this has been the trend in the USA for some time.

What was also interesting to observe, particularly in the early stages of the competition were the crowds. It was clear that many of the football shirt wearing spectators of the various teams were residents of the USA (Canada as well) and this also likely did not do a great deal for the domestic hotel sector nor the aviation sector. What statement it did make was that the true feeling of national identity comes through DNA and not a piece of paper you carry in your pocket. You are free to call yourself whatever you wish, but your nationality comes from your genes with many countries football teams garnering huge domestic support in the USA and Canada from their diaspora, be they Columbian, Iranian, Korean or whoever. What was also obvious was that many of these fans had never been to a football match before. In a Germany v Ivory Coast game, an Asian fan adorned in a Germany kit and sat in the middle of thousands of Germans stood and cheered when the African team scored; a tap on the shoulder pointed out that perhaps he shouldn’t be doing that. Meanwhile the Netherlands v Sweden game saw the stadium awash in the two teams Orange and Yellow colours, a lively atmosphere was predicated as would be expected in Europe, except that it soon became clear to commentators that most people in these colours were pure tourists who bought the shirt and had no idea what or who they were watching or who they were cheering for: great for ticket sales, but fake fans dilute the atmosphere via a lack of real emotion.  

A lack of atmosphere was also prevalent in many group games despite the high attendances, a facet of an audience  who have been brought up to view sport as entertainment, but who miss the real meaning of sport. An example of this is the Mexican wave!  Real football fans don’t do Mexican waves! Many of the real football fans had long been dissuaded to travel to the USA by the sheer and yet unnecessary high costs that became attached to the event.

Finally, on the subject of the fans, the home-based fans in Mexico who clearly knowledgeable as well as fervent despite losing in the last 16.  In Canada you saw the first signs of a country switching onto “real football” whilst in the USA, the viewing figures were outstanding, but those home fans are still several rungs down the ladder on football culture and tribalism. The songs, chants and anthems of each country are what makes the sport and the World Cup special, the USA has a problem in that regardless of whatever sport they follow, cheering on home stars in Football or Golf (where they should be seen and not heard), comes with an almost moronic and repetitive grunt of “Yew – Hess – Hey” (google translate not required). To their credit, a new chant did appear in games played by the USA whilst they were still alive in the competition, but this appeared to have been crafted by a first-year kindergarten student on his first day of lessons. The worlds more knowledgeable sporting media did however find this subject matter amusing; all part of the global sporting learning curve perhaps and the evolution from their view of sport as entertainment to one that contains sporting jeopardy.

As far as the competition went, the end result was that football won and thuggery and violence lost. A quote virtually all European news outlets agreed upon even if they are not usually pro Spanish. The thuggery and violence perpetrated by the Argentinians is nothing new and the saving grace is they didn’t end up victorious. The Argentinian media’s view was that they were perfectly vindicated to be violent in their quest, such is their lack of humility. The US Presidents view was that this was the most successful and best (quote) tournament ever; it wasn’t but it did generate more revenue than ever, Revenue that then is directed by the FIFA hierarchy to football playing countries around the world who in return vote for more of the same and that includes who is elected (re-elected) head of the organisation. The extra money meanwhile enters the coffers of the various opaque bodies that run football in their respective countries and where the colour of financial transactions is brown and where no audit is required.

The dirt however didn’t end with the awarding of the trophy to Spain, it was simply the end of another chapter in what is becoming a very long book.

As the last shouts died away from the actual football, news broke that the aforementioned head of FIFA was orchestrating with the US president’s entourage to sell something he didn’t own and had not told anyone about the plan. US banks and funds together with the Presidents close friends would buy the World Cup Event at a knock down price and the FIFA boss would earn millions. The retort was less than kind from almost all civilised countries but not so loud from the less transparent ones who could also earn a quick buck. The tale will rumble on but the European body that governs Football has commenced legal proceedings against the FIFA boss for self-enrichment to the detriment of others. Football is owned by no-one and is not there to be sold. The dirt continues to appear with stories of mis-appropriation of funds over ten years and whole lists of unethical behaviour. A perfect person for the unscrupulous to get into bed with. Forget the history, forget the culture and forget the tradition; there’s money to be made. No morals required and no audit required.

The next running of the World Cup will be hosted mainly by Spain, Portugal and Morocco with centenary matches also hosted in Uruguay, Argentina and Paraguay.  It will hopefully by frequented by real football fans who will make a real and positive contribution to the tourism and hospitality sectors in each country. Hopefully also the rules will be followed and the current FIFA Presidents habits of making arbitrary decisions when ever he felt such as changing the games of being one of  two halves to one of four quarters so that he could sell more TV advertisements is shown the red card; football fans were and are disgusted by that and let their feelings known in every game (the USA tried this the last time when the hosted the event in 1994 and were given short thrift). Hopefully also the unknown American A listers who know nothing about the game can be excluded from watching in stadia unless they promise not to eat and drink with their hangers on whilst a game is in play; you have to be pretty uncultured to eat and drink whilst watching a sporting game is in play. Hopefully also the rules regarding players suspensions are followed and not ignored when a President call you; this placed the USA team in a no-win position as almost every nation turned against the host country team; well done Don. Finally, the half time interval is 15 mins not 30 as per the rules of the game. Anyone who considered the half time interval show that featured Madonna, Shakira, BTS and Justin Bieber as a good watch should never be allowed in a football stadium again and shouldn’t be there in the first place. The was very American esque and the wider football world thought it was pointless and degenerates the biggest sporting event in the world. It’s OK for America sporting culture, but not for the rest of the world. Never again hopefully. 

As for the future, two ideal scenario’s spring to mind. In the middle of the last century, war criminals escaped to South America and in particular Argentina. Before prosecution maybe the three passport (Swiss, Italian and Lebanese – a red flag!) holding FIFA head who is also fittingly a member of that other “cloudy” international sporting body the International Olympic Committee, could maybe seek sanctuary in that country together with his unscrupulous cronies et al and together with the thugs from the Argentine football team in total isolation, never to be seen again by the outside world. Few would shed a tear. The second is he could buy a house alongside passport compatriot Carlos Ghosn, both are from the same cut. One can at least hope.

Mark Thomas

From Seattle to Cornershop

There could be a deluge of cans of baked beans if the head of Emirates has his way. Tim Clark told aircraft manufacturer Boeing that the airline will flatly refuse to take the first 10 of 270 Boeing 777x planes it ordered as they were not fit for purpose and would be” better off being turned into tins of baked beans” (quote). The plane was due to enter service in 2020 but that date is now expected to be 2027 at the very best. Indeed, one of the planes earmarked for Emirates has already been scrapped! 

British Airways also have orders they are awaiting and when asked when the airline could expect the delivery of their planes, the BA CEO Sean Doyle gave a pragmatic reply of “’Good Question”.

Seems like Lada esque manufacturing is not exclusive to Russia.

What’s a Window Seat?

The USA invariably raises the bar in stupidity and the ongoing case between United Airlines and passengers who claimed that window seats they have paid for did not actually have a window, has gained mor support from the legal system which in turn supports the claimants. United’s defence had been that when they actually say “’window seat” it does not actually mean its next to a window! The more you read this the more stupid the argument becomes.

The lawsuit is not doing United any favours as the more attention the farce gets, the more people join in the claim which is likely to cost the airline millions of dollars (unless they get their mate Donald to veto it). 

The knock-on effect also sees Delta embroiled in the same farce as they too try to re-define the English language.

The Best Form of Competition

In a story that’s likely to have legs: very long ones at that, rail operator Eurostar who has been the only operator on the cross channel rail route between the UK and mainland Europe since services started in 1994, has lodged a complaint against the awarding by the UK authorities to Virgin Trains, of access to the high speed rail line that links London’s St. Pancras Station and the Channel Tunnel.

Virgin intends to break the 32 year old Eurostar monopoly on cross channel routes and run up to 20 services per day from London to Paris, Brussels and Amsterdam.

Perhaps this was to be expected as the best form of competition is no competition. Though Virgin is not alone in its plans as Italian rail operator Trenitalia also plans to operate cross channel services and it is ahead of Virgin with its plans and its fleet orders.

European Hotel Openings Driven from the Top

Two leading indicators in sentiment connected with the travel and hospitality industry are reflected in how many planes airlines are ordering for the short and medium term and also the number of hotels under construction. Both indicators are currently positive to say the least and this, despite the veiled attempts by many, albeit a minority, to subdue travel, all in the interest of ’planet earth’. Translated this invariably becomes a smoke screen to justify extra (soft) taxes.

Focussing on the European Hotel scene, some 307 new hotel openings are expected in 2026 which will collectively add around 26,000 rooms to the existing stock. The “Luxury and Upscale” segment is driving this boom with up to 900 projects in the pipeline across the continent. The midscale segment by comparison has just under 500 projects on the go.

The UK has a total of 263 hotel projects in the pipeline followed by Turkey with 156 and Germany with 146. From a city perspective, London has 70 projects, Istanbul 44 and Lisbon 40.

Robo’s with a Stranger

Uber and its partner Wayve have been granted licences by Transport for London (TFL) to operate Robotaxis on the streets of the UK capital. The taxi’s will be Ford Mustang Mach-E models which will feature a camera on the roof and radar. However, the terms of the licence means that a trained TFL licenced private hire driver must be in the vehicle to oversee the trip, provide support and intervene if necessary. Perhaps added to this last comment should be “’for the time being!”

Expect more competition in this area on the streets of London before very long.

A Hat trick of Openings

The excellent Sofia metro continues to expand and mid August saw the opening of the extension on line 3 with three additional stations opening: Georgi Asparuhov Stadium (home of football team Levski), Bessarabia and General Vladimir Vazov.

The expansion cost 144,3 million Euro and car traffic is expected to decrease by 25% in the newly connected areas.

Disconnection Becomes a Luxury

More and more hotels, particularly at the top end of the spectrum, are installing “’kill switches” that disable Wi-Fi, Bluetooth and electronics. The concept appears to be catching on in those retreats that sell themselves on wellness and well being with the strap line being, that guests can “take control back of what goes on and around their lives.”

So, imagine that; not so very long ago Wi-Fi was a paid extra in hotels until it reached the point whereby every lodging was expected to provide it free of charge. As the pendulum swings, might it be that hotels will spot the profit opportunity to levy a charge to “’disable’’ the Wi-Fi/internet etc that is now a staple in your hotel room?

The Shrinking Seat

An interesting article appeared recently in a Travel publication which we have to assume is factual. It produced a chart showing various airlines seat pitch 40 years ago (1984) versus the average seat pitch two years ago (2024). Bearing in mind that the average human body has grown considerably over the past 40 years and continues to grow, the chart is revealing to say the least. Particular note should also be made that if one then compares the increase in obesity rates, its verging on a miracle that many passengers can actually fit into their seats today, particularly in countries that have high obesity rates:-

Airline                         Seat Pitch 40 years ago(inches)             Seat pitch 2024(inches)

American                                  31-33                                                   30-32

Delta                                         31-33                                                   31-32

United                                      32-36                                                   30-32

BA (short haul)                          30-32                                                 29-31

BA (long haul)                           31-34                                                  31

Lufthansa (long haul)                 34                                                      31-32

Qantas                                         34                                                       31-32

Virgin (long haul)                        34                                                       29.31

The likes of Ryanair and Wizz Air were not around 40 years ago, but their seat pitch today averages 30 inches with Ryanair and 29 inches with Wizz. So, on the one hand they offer less room than the airlines cited above, but then again they sell themselves as a “’Low Cost”/ No Frills/ Budget provider. The difference is, the airlines in the chart don’t wish to be tarnished with that brush. So, the bottom line might translate to ‘”do you pay more for a few more inches”? Direct the question with caution.

Never Assume

It never pays to assume something that is not already a given!  Back in May, after Bulgaria amazingly won the Eurovision Song Contest, we speculated that it would be Sofia that would play host to the competition in 2027 and attract literally tens of thousands of visitors that adorn the event each year. Wrong: the event which will run between May 10-15 will be hosted in Burgas!

In hindsight this makes a lot of sense in some ways though not in others. The seaside location of the new Exhibition centre and the proximity of the Sea Garden in Burgas where fan fests will be located will provide a great backdrop, particularly for TV. There is also an abundance of hotels in nearby Nessebar/Sunny Beach and many hotels may now plan to open earlier than usual to tap into the potential that the event will bring. Just how several thousand people will transport between here and central Burgas is another question.

What might be a stretch is the availability of suitable flights to Burgas Airport or even Varna Airport. Sofia will likely still play the role of gateway airport for many event goers with the added opportunity to sample the Trakia Highway for three hours or so. Anyone wishing to do the journey by train might create their own future dinner table stories.

Tourism in Numbers

Detailed tourism numbers associated with the peak summer months will not be made available by the Ministry of Tourism until mid September, but the June figures are now in the public domain and they provide an interesting analysis to say the least.

Revenue year on year increased by a whopping 13.6% to 198 million Euro. Of which 138.9% came from non Bulgarian nationals. The actual numbers of tourists decreased by 3.1% with foreign visitors down by 5.1%. Provisional figures for July show foreign arrivals down by almost 3%.

So the takeaway is, significant reduction = greater revenues which means one thing and one thing only; the increase of prices must be mid blowing.

The proof will be in the pudding so the expression goes, but the Ministry of Tourism operated by the new government, will need some good spin doctors to dress this one up. Default setting may well be “’it wasn’t us”’, which in all honesty is not incorrect.

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