Regulatory and Legal Affairs

🍷 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.

🌱 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.

💸 Californians voted against Proposition 32—50.8% opposed—blocking an increase of the state minimum wage from $16 to $18 by 2026. The Associated Press confirmed the results on Election Day. California still maintains a high minimum wage, second to Washington State's $16.66 starting January 1, while California's has doubled since 2010. Fast-food workers, following AB 1228 passed in fall 2023, see a separate minimum of $20 as of April 1. However, restaurant traffic has declined nearly 6%, outpacing the national average, after the wage hike.

💲 In Texas, U.S. District Judge Sean Jordan struck down the Department of Labor's final overtime pay rule, which would have raised the threshold incrementally to $58,656 by 2025. The rule, which went into effect on July 1, raised the yearly threshold to $44,000, impacting nearly 4 million salaried U.S. workers. However, this will now revert to the pre-pandemic level of $35,568. The Restaurant Law Center and Texas Restaurant Association's lawsuit led to this ruling, which the hospitality industry largely supports.

💰 The UK Government is introducing legislation to reform business rates, beginning its delivery as promised in the Labour manifesto. Funded by a tax increase on the top one percent of high-value properties, the bill aims to permanently cut rates for retail, hospitality, and leisure businesses from 2026. Last month, business rates support was extended for a year, but reduced from 75% to 40%, capped at £110,000. This will lead to an average 140% increase in rates for over 250,000 premises; restaurants' bills will rise from £5,051 to £12,122, and pubs from £3,938 to £9,451.

📌 HOTREC reports that Booking.com is legally required to comply with the Digital Markets Act (DMA) as of today but has not met compliance or communicated necessary changes by the deadline. Booking.com's market share exceeds 70%, but changes to parity clauses and data access are considered cosmetic or unaddressed, such as the pre-payment option and website interface concerns. HOTREC's Director General, Marie Audren, urges the European Commission to investigate Booking.com for non-compliance.

📡 In the travel industry, digital regulation is intensifying. Europe launched the "EU Data Package" with five legislative pieces: Data Governance Act, Digital Services Act, Digital Markets Act, Data Act, and Artificial Intelligence Act, within the last five years. Similar laws have emerged in the U.S. and China, affecting data privacy, consumer protection, competition, AI, marketplace platforms, and taxation.