Regulatory and Legal Affairs

📊 On 5 November 2024, a coalition led by Business Europe including HOTREC and 26 industry partners, co-signed a statement on the Corporate Sustainability Due Diligence Directive (CS3D). They urge the European Commission to prioritize relief from administrative burdens and simplify regulations for competitiveness, especially for SMEs. Key demands: a thorough competitiveness assessment, guidelines and legislation adoption 2 years before mandatory compliance or an extended transition period, and consistent rules across the EU to maintain the Single Market's integrity. The coalition recommends the EU monitor national implementations to align with the Directive.

🏠 One year after Local Law 18 (LL18), New York City hotel prices rose by 7.4%, outpacing the national increase of 2.1%. The city's rent jumped 3.4% in 11 months with downtown Manhattan median asking reaching $5,000, and vacancy rates remained unchanged at 3.4%. Airbnb guest spending averaged $260 per day, but LL18 reduced accommodation options, particularly in outer boroughs. Critics argue LL18 favors corporations over residents and small businesses, suggesting a need to re-evaluate and amend the law.

📚 On 5 November 2024, HOTREC and 26 industry partners advocated for a business-friendly Corporate Sustainability Due Diligence Directive (CS3D), requesting EU support for competitiveness of businesses and SMEs. Their main asks include a competitive assessment of CS3D, adopting guidelines 2 years before mandatory compliance or extending the transition period, and ensuring harmonized rules for the Single Market. The European Commission is urged to monitor transposition measures and coordinate with Member States to align with the Directive.

💸 TikTok Shop, the new online shopping king, launched in the US in September 2023. With an expected revenue of $17.5 billion in 2024, it offers a seamless checkout experience and deep discounts for customers. It features an Affiliate Program, live selling events, and integration with external apps, directly competing with platforms like Shopify. TikTok's parent company ByteDance must sell the app by January 19, 2025, due to US national security concerns, which could impact TikTok Shop's dominance.

💸 Base wages for restaurant servers reached 43% of their average paycheck, up 35% since January 2020. From 2019 to 2024, their hourly earnings, including base pay and gratuities, jumped from $18.61 to $23.88, a 28% increase. The pandemic sparked wage spikes, influenced by tip credit laws. The Biden-era 80/20 labor rule was overturned in September 2024. Labor shortages during 2021 and 2022 significantly drove up labor costs. Chicago saw the fastest four-year wage growth for servers, while Boston had the highest tipped wages, with tips comprising 76% of wages. Conversely, Los Angeles and San Francisco had tips under 40% due to a raised minimum wage to $20 an hour. ADP Research analyzed wages across 50 states from data of 100,000 restaurant servers.

🍷 A potential 25% tariff on European wines could severely impact the U.S. restaurant industry, particularly independent businesses. Harry Root of Grassroots Wine noted a significant profit comes from European wines. U.S. restaurants may have to raise prices or reduce margins, as seen during the 2019 tariffs on wines with ≤14% alcohol from France, the UK, Germany, and Spain, which later expanded to include most imported wines. The tariffs, originally due to a dispute over aircraft subsidies, were suspended for five years starting March 2021. Restaurants like Le Pigeon in Portland and Celebrations in Missouri, known for their European wine pairings, could face challenges, with wine prices potentially rising from $45 to $60 per bottle. Alex Kroblin of Thirst Wine Merchants experienced decreased sales and profits due to the previous tariffs. The industry is on alert for the new administration's 2025 promise of additional import tariffs.

📍 Key European travel and tourism organizations met in the European Parliament with Commissioner Apostolos Tzitzikostas and MEP Daniel Attard to advance sustainability and resilience in the sector. The meeting builds on the April 2024 Joint Declaration made in Rhodes, aiming for decarbonisation and cross-sector collaboration. Commissioner Tzitzikostas plans to introduce a Sustainable Tourism Strategy for climate change adaptation. The organizations, including A4E, ACI EUROPE, CLIA, ECTAA, EEIA, ERA, HOTREC, IAAPA, IRU, and RURALTOUR, seek policy support and targeted funding for sustainable transformation.

🏠 In Italy, rental accommodation owners must now meet guests in person due to a ban effective from 18 November, targeting Airbnb and Booking properties. This measure, in response to safety and public order risks, requires personal guest details to be sent to police within 24 hours of check-in. The ban comes amid discontent in cities like Rome, Florence, and Milan over rising housing prices and disturbances caused by rental properties. The 2025 Jubilee celebrations in Rome partly prompted the new rule.

🌱 Preferred Travel Group, in partnership with the Travel Foundation, launches its Climate Action Plan to reduce carbon emissions by 50% by 2030 and achieve Net Zero by 2050, aligned with the Glasgow Declaration. The plan includes five key pathways: Measure, Decarbonize, Regenerate, Collaborate, and Finance. The company conducted a baseline emissions inventory, establishing objectives aligned with the Paris Agreement and Glasgow Declaration, and prioritized actions via a structured scoring system. By 2025, they aim to refine policies and engage associates to reduce Scope 3 emissions from business travel and events, leveraging a Climate Task Force and Climate Steering Committee for strategic implementation.

🏦 The four-star Hotel Dei Cavalieri – Milan Duomo, a member of the Dei Cavalieri Collection Group, received the "Strutture Ricettive Storiche e di Qualità" award from the Lombardy Region for its excellence in hospitality and cultural heritage. Established under Article 78 of Regional Law 27/2015, the accolade honors the hotel's historical and architectural merit. Built in 1949 with a design by Emilio Lancia, the hotel is known for its trapezoidal shape and curved façade, which is now protected as a cultural heritage site.