Person of the Week

Nicolas Sarkozy, President, French Republic

For reducing VAT from 19.6 per cent to 5.5 per cent in France from 1 July in all cafes and restaurants. Having been the first country to introduce VAT in 1954, President Sarkozy has presided over a move which has bee long demanded by the industry. The result has been an immediate reduction in prices, with estimates suggesting the savings could be as much as 10%.

Quote of the Week - the new definition of a rise?

"Total spending will continue to rise and it will be a 0% rise in 2013/14."

Gordon Brown in Prime Minister's Questions. (He later corrected his statement during an interview to say that he meant a 0.7% increase).

Article of the week

In this ongoing series from EP magazine, the article this week is from the EP archives and is a special feature entitled: "Lord Forte - the last great entrepreneur?" - click here.

The report was published six months after his death and considers the impact that he has had on the industry. Taking comments from some of the industry leaders who worked with him, including Gerald Lawless and Peter Taylor, the article seeks to understand why Forte’s legacy is important. What made the difference?

Facts of the week

Virgin Trains reports biggest percentage profit increase in this year's Top Track 100

The list, based on the latest available sales data in Britain's private companies has includes a mix of hospitality, leisure, travel and tourism businesses

Whilst the list does not reflect the true impact of the credit crunch, it does suggest that there is a drive towards organic growth and efficiency rather than growth by acquisition:

• Gala Coral (2)
• Virgin Atlantic (9)
• SSP (27)
• Virgin Trains (61)
• Bourne Leisure (67)
• OCS Group (75)
• Merlin Entertainments (77)
• Welcome Break (95)

Source fasttrack.co.uk

"Keeping up with the Joneses" became part of banking culture according to senior official

Bank of England Executive Director for financial stability states that the industry was seduced into overlooking risks and success was based on luck not skill

• Andrew Haldane made the remarks this week in preparation for a conference in the US on new financial regulations.
• He commented the only way for banks to 'keep up with the Joneses' was higher leverage and that returns on equity achieved this way were a "measure of gambler’s luck."
• Basel II bank capital rules assumed that highly diversified businesses were somehow less risky, resulting in the biggest banks carrying the lowest relative capital ratios.
• Haldane commented that regulation may have led to perverse risk-taking among large, interconnected firms.

Source: ft.com

Master Innholders Scholarships

Deadline now extended for applications to 17th July 2009.

At least 12 scholarships are being awarded this year, to be taken during 2010. Interviews will be held in London in November.

The Master Innholders Scholarship Programme awards scholarships annually to managers in the hospitality industry. Successful candidates are granted places on a two week management development course at Cranfield University, Cornell University (USA) or the Ecole Hoteliere de Lausanne (Switzerland). The entire cost of tuition, board and lodging is included as well as a contribution towards travel to Cornell and Lausanne.

Full details of the application process, the courses on offer, the assessment criteria and background information can be seen by clicking on http://www.MI-scholarships.com