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10 Questions

with Leon Larkin
10 Questions | Search restaurants | Archives


July 20th, 2005 issue

Leon Larkin photo
An avid golfer, Leon Larkin says the country has huge potential for golfing tourism — something InterContinential hopes to integrate into its hotels.
The summer season could not have started better for Czech hotels. After lengthy talks earlier this month, the government announced it would not shift the accommodation services tax from the lower 5 percent value-added tax (VAT) bracket to the higher 19 percent bracket. Among those who sighed in relief was Leon Larkin, general manager of the Prague-based InterContinental Hotel. In an interview with The Prague Post, Larkin talks about the challenges facing Czech luxury hotels. He also reveals that InterContinental Group is discussing the development of hotels with attached golf courses in this country.

1. The summer season is in full swing. How does it affect the business of luxury five-star hotels such as the InterContinental that seems to host wealthy businessmen rather than backpackers?

There is always a luxury sector in the tourist market — people who are prepared to pay extra for that InterContinental experience, and as Prague is currently a favored destination, the hotel is very busy at the moment.

2. Still more and more tourists arriving in Prague travel with low-cost airlines. Are you happy about this trend, given the fact that low-cost airlines create a market for people who do not desire to stay in luxury hotels?

I am happy that people see Prague as a desired destination no matter what the form of travel. However, like all things in life, there needs to be balance.

If a destination only promotes and provides to the cheap end of the market, that's what it will become and that's what its reputation will be. Prague should not become a one-dimensional destination, as it has much more to offer than that. There should be a balance so that all sections of the market are addressed and so that the development of this major contributor to the local economy, tourism, reaches its full potential. Tourism is vital to the economy and it needs to be understood by all concerned, from politicians to the business community, that all sections of the market should be addressed to reach the maximum tourist dollar potential. This, to me, is vital, not only from the economic financial injection but also from a future infrastructure building viewpoint.

3. Like regular tourism, conference travel has also begun to rise, with more and more conferences held in Prague. One of your competitors, the Hilton Hotel, recently introduced new incentive plans to bring in even more conferences. What are your plans in this field?

Leon Larkin
  • Job title: General manager, InterContinental Hotel Prague
  • Age: 55+
  • Nationality: Australian
  • Previous job: A variety of positions across the world spanning his 30-year career in the hotel industry
  • Education: Teaching degree, University of Western Australia
  • Family: Married, two daughters
It will be most unfortunate for the future of this vital industry if it is left only to the hotels, or similar organizations, to take the initiative that should be the responsibility of the government and industry organizations. There needs to be a full, coordinated plan and energetic sales activity from all sections of the community for the benefit of all, notwithstanding the economic advantages that tourism and guest visitations bring. Conferences will play an extremely important part of the future of the industry, and we need to get serious about it. The InterContinental Hotel has in the past and will continue in the future to take whatever initiatives are necessary to play its part.

4. In June, the InterContinental hosted a golf conference that indicated that the Czech Republic could soon become a popular destination for golf enthusiasts. Would the InterContinental consider building golf resorts in this country?

The InterContinental Hotels Group is always looking for new business opportunities, and as we already are involved in hotels with golf course development in other destinations, if the right deal came along, naturally we would be interested.

5. By the way, you're said to be a passionate golfer. How much do you think needs to be done so that this country could become a popular destination for golf enthusiasts from around the world?

When I talk to people who have never been to Prague, they are surprised at the existing golf industry that already exists in the Czech Republic. All it needs now is to market itself as a serious golf holiday destination, which means that the golf industry, government and the tourism industry must coordinate their plans to capture this lucrative worldwide market, which is absolutely huge in potential.

6. Earlier this year, local hotels and restaurants succeeded in lobbying against shifting accommodation and restaurant services from the 5 percent VAT bracket to 19 percent. How relieved were you to see the government keeping your services in the 5 percent bracket?

If tourism is vital to the economy, then one has to be careful not to "kill the goose that lays the golden egg." One would trust that common sense will always prevail and that decisions will always allow the industry to grow and achieve its maximum potential.

7. While attracting foreign tourists appears to be a priority for state agencies such as CzechTourism, they also began focusing efforts on promoting travel within the Czech Republic. Why do you think that most Czechs prefer traveling abroad without exploring their homeland first?

I really have not been here long enough to make a considered comment on that, but it does suggest to me that the country's past history of restricting travel is dictating local travel habits.

8. Generally speaking, the tourism business is widely considered a gold mine, since tourists seem to be an easy group to rip off, be it in restaurants, cabs, etc. How do you respond to that?

Again, it is imperative that you always consider your future. In tourism, your reputation is everything. We rely on repeat business and word-of-mouth advertising and recommendations. It is absolutely vital to look after your guests and provide them with a great experience; then not only will your future be secure but also the present. It is that simple, and if you don't do it you hurt the industry, the reputation of the destination. Apart from that damage, you won't survive.

9. What did you think after reading that most hotels in London more than doubled their charges on the day of the terrorist attacks there, to profit from the thousands of commuters stuck in the city center?

I do not believe that this applied to many hotels, just a few, and they are being investigated by the industry itself. In fact, some of our hotels were especially helpful, particularly one that was near the blasts. They took in victims immediately, provided first aid, blankets, food and water, and comfort. I have always found the hotel industry to be very compassionate in such crises, and also with individual customers in times of need.

10. Given your rich professional experience as a hotel manager, what was the most bizarre request from a hotel client that you've ever come across?

Yes, over the years there have been many strange requests and happenings. One that springs to mind is a gentleman who wanted toy battleships and submarines, so that he could play with them in the bath!

Want your top manager to answer our 10 Questions? Send a message to František Bouc at fbouc@praguepost.com


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