Mon, Jan 22, 2007 page11

• Interview: Taking Grand Formosa international

  With 20 years of hotel management experience, Italian Francesco Borello joined Grand Formosa Regent, Taipei, last November to serve as its general manager. He had previously been the chief executive officer of Domina Hotel Group, which owns 53 hotels in 18 countries. In an interview with "Taipei Times" staff reporter Jackie Lin on Jan. 8, he shared his vision of turning Grand Formosa into an international brand

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  Taipei Times: Last month, Formosa International Hotels Corp (晶華酒店) announced it would acquire Domino's Pizza's operations in Taiwan and Beijing for NT$500 million (US$15.4 million). This has sent shock waves across the hotel industry. What effects do you expect to see from this investment project?

  Francesco Borello: This is a very interesting strategic decision. It's wonderful because it definitely targets a different market, which is huge. If customers eat pizzas today at Domino's, tomorrow they might be our guests. Domino's offers fantastic services with efficiency. With our expertise in food and beverage, we'll definitely enhance Domino's Pizza's operation.

  TT: Can you elaborate on what you said about enhancing the pizza operations and what business goals do you foresee in this area?

  

  Francesco Borrello, general manager of Grand Formosa Regent, gestures during an interview with Taipei Times on Jan. 8.

  PHOTO: GEORGE TSORNG, TAIPEI TIMES

  Borello: I don't think the plans are ready yet but we're very much quality-minded. We will be offering probably the best quality food and service available in Taiwan.

  TT: One big piece of news recently is the launch of the long-awaited high-speed rail. Do you expect it to bring more tourists from the south and benefit your hotel business?

  Borello: Absolutely. Many years ago, when I was working in Geneva, they opened a high-speed railway called TGV from Geneva to Paris. You can only imagine the influx of business they had. It worked extremely well. I feel that the same thing will happen within Taiwan, which has a lot of potential customers and travelers. Sometimes they're reluctant to take a plane.

  It's also a more relaxing way to travel. Tourists can go to the station and book tickets and don't have to go one hour before checking in and go through security checks -- that way they lose a whole day.

  I remember in Geneva, rail system tickets cost very little, only one quarter of the plane tickets. People arrive at the station, take the underground and go wherever they want.

  The high-speed train will definitely bring a different dynamic in terms of tourism because a country should have a great domestic tourism platform.

  We're already trying, with the help of some local tour agents, to design packages that include staying at the hotel and train tickets. It's in the making, but not available yet. Within the next two to three months they should be in place.

  Also because the prices cannot be too high, we have to take many aspects into consideration. We'll offer some special rates, especially on the weekends.

  TT: How low will the room rates go?

  Borello: It will be affordable. Domestic travelers are very important. This is a good opportunity to develop tourists in domestic tourism. We can't take advantage of our guests because they are also our partners. I don't want to rip them off. I want them to come all the time, and I have to be reasonable and appealing.

  TT: Is it possible that some of the smaller hotels will become marginalized?

  Borello: I think all hotels will benefit. Mainly, the non-five star hotels will benefit more because of budget reasons. The bullet train makes communications much better.

  TT: Grand Formosa chairman Steven Pan (潘思亮) has said he wants to develop the hotel into an international brand. What goal do you have?

  Borello: We want to develop an international management company, which we hope will have 100 hotels within the next 10 or 15 years worldwide. It's different from owning a hotel and this is the most intelligent way of doing it. You build your hotel and we manage it for you. We're in the process of finalizing the whole issue. It'll be like Sheraton, Westin and Hyatt. We want to be one of them.

  TT: Is it possible for this management company to be established this year?

  Borello: I think so, if all the processes and steps go well. When the company is established, we'll announce it as well as the brand. The company will be a holding firm called Grand Formosa Hotel Corp, which will own the Domino Pizza division, the restaurant division and the hotel management division. The hotel management division will have five-star and four-star brands. The headquarters will be in Taipei for sure.

  TT: You have rich experiences working in Asia's hotel sector, for example in Indonesia from 1986 to 1989 and Singapore from 1989 to 1991. Can you compare Taiwan's hotel market with those in other Asian countries?

  Borello: Taiwan has all the attractions and 23 million people, which are the most important resource. Taiwan is self-sufficient and has green areas, parks, museums, universities, islands, shores, resort areas, culture and nightlife. That's all you need. This is heaven.

  If you create hotels, automatically tourists will come. Supply creates demand. We have to brand Taiwan as a destination. Take Malaysia as an example. The country is promoting its tourism sector, when people switch to any TV channel they will see the "Visit Malaysia" ads.

  TT: The government launched a project in 2002 to double the number of foreign tourists visiting the country to 5 million by next year. It looks like a tough goal as for the first 11 months last year the figure only reached about 3.2 million. Some have criticized that the government has not done enough. Do you have any further suggestions?

  Borello: The government has to create mass demand, brand the cities and the country as a destination. Also to prepare the people of Taiwan to accept tourists -- campaign, exposure and awareness.

  When tourists are in the street asking a question, it has to be answered. English education is part of the efforts to boost tourism. You go to Singapore or Dubai, everyone speaks English. English is the most important language today. Tourists want to be understood.

  I personally think Taiwan could become a key attraction in Asia. It has all the attributes required to become a tourist country.
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