Lodging News - October November 2017

OCTOBER / NOVEMBER 2017

Tapping Into

INTERNATIONAL MARKETS Lodging Operators Take Proactive Steps To Attract Far Away Visitors see also ADDRESSING THE LABOR SHORTAGE

PERS Predicament

OregonRLA.ORG

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Lodging News | OCT / NOV 2017

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Lodging News | OCT / NOV 2017

OregonRLA.org/HealthPlan

CHECKING IN ABOUT

Lodging News is published six times a year by Oregon Restaurant & Lodging Association (ORLA), 8565 SW Salish Lane, Suite 120, Wilsonville, Oregon, 97070, 503.682.4422, 800.462.0619.

To learn more about ORLA log on to OregonRLA.org.

PUBLISHER JASON BRANDT / PRESIDENT & CEO

JBrandt@OregonRLA.org

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Wilson Ranches Retreat, Fossil PHOTO CREDIT: Christian Heeb / Travel Oregon

LORI LITTLE / EDITOR

LLittle@OregonRLA.org

IN THIS ISSUE | OCTOBER / NOVEMBER 2017

HEIDI JANKE / DESIGN

HJanke@OregonRLA.org

MEMBERSHIP

To become a member of the Oregon Restaurant & Lodging Association, please contact Jennifer at JStarr@OregonRLA.org or 503.682.4422.

ADVERTISING

Please support the advertisers herein; they have made this publication possible. For information on advertising opportunities, please contact Mt. Angel Publishing.

MAGGIE PATE MT. ANGEL PUBLISHING, INC.

FEATURE 16 TAPPING INTO INTERNATIONAL MARKETS How Lodging Operators Can Take Proactive Steps to Attract Far Away Visitors Domestic tourists remain the bread and butter for hotels and other hospitality companies in Oregon. But international tourism is seeing significant growth and lodging operators are taking proactive steps to attract these international markets.

541.968.3544 Maggie.P@MtAngelPub.com

SUBMISSIONS

To submit articles or other editorial input, please contact Lori at LLittle@OregonRLA.org.

ORLA BOARD OF DIRECTORS

Vijay Patel, Chair, A-1 Hospitality Zach Poole, Vice Chair, Pig ‘N Pancake Buggsi Patel, Treasurer, BHG Hotels Jerry Scott, Elmer’s Restaurants, Immediate Past Chair Chris Bebo, Provenance Hotels Richard Boyles, InnSight Hotel Management Group Lucinda DiNovo, The Mill Casino Hotel Treva Gambs, Gamberetti’s Italian Restaurant Erin Gilchrist, Bandon Dunes Golf Resort Terry Goldman, Canopy by Hilton Portland Wray Hutchinson, Buffalo Wild Wings Vickie Irish, Shari’s Restaurant Group Steven Johnson, Vip’s Industries Masudur Khan, Seaside Lodging LLC John Lenz, Jaspers Cafe Kent Lewis, Anvil Media Bobbie McDonald, Sysco Jennifer Nelson, Headlands Coastal Lodge & Spa Komal (Tina) Patel, ALKO Hotels (Ex Officio) Dani Rosendahl, On Deck Sports Bar and Grill Michael Rowan, Deschutes Brewery Randy Xavier, Food Services of America

PRESIDENT'S PERSPECTIVE 6 THE INTERSECTION OF NATURAL RESOURCES AND OREGON TOURISM

GOVERNMENT AFFAIRS

8 OREGON’S SCHEDULING LAW How A Bad Bill Got Better 11 ADVOCACY UPDATE Protecting Oregon’s Hospitality Industry on Local and National Fronts 12 YOU CAN MAKE A DIFFERENCE Help Protect The Future Of Your Business

With The Oregon Political Tax Credit

MEMBERSHIP

14 UNIVERSITIES ADDRESS OREGON’S HOSPITALITY LABOR SHORTAGE Marylhurst University

Creates Degree Program in Response to Industry Trends 24 DATA BREACH Potential Impact on Your Hotel 26 PERS PREDICAMENT Task Force Ideas Carry Costs for Employers, Consumers 27 LODGING PERFORMANCE REPORT Hotel Benchmark Data 27 NEW MEMBERS Welcome to the Association 28 EXTREME ADVENTURES, EXTREME RISKS Growing Trend for Resorts to Offer High-Risk Amenities 29 NEWS BRIEFS Information From Around the Industry 29 CALENDAR Industry Events and Activities 31 MEMBER SOLUTIONS ORLA's Cost-Saving Solutions OregonRLA.ORG

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The Intersection of Natural Resources and Oregon Tourism Summer was humming along with strong RevPar and occupancy performance for Oregon’s lodging industry – then came a late spree of Oregon wildfires.

It should come as no surprise that active forest management (especially in Oregon’s federally owned forests) will have to become a higher priority as part of ORLA’s advocacy efforts.

Our wildfire season will end up costing hundreds of millions of dollars for direct fire suppression alone. This doesn’t include the alarming impacts these natural disasters have on the environment, paychecks, and jobs within the tourism industry.

The facts at the time of this writing are as follows: • According to the Oregon Department of Forestry, over 525,000 acres have burned in Oregon this summer on both private and publicly owned land.

• The Chetco Bar Fire in southern Oregon is over 182,000 acres on its own and is currently the country’s largest wildfire.

• It is estimated that more than 350 million individual trees are standing dead in the 14 million acres of Oregon’s national forests. That’s 50 percent more than the live tree volume on all state and local forest lands.

• Science and study back up the significant benefits of active forest management to reduce the size and severity of Oregon’s fires.

• A strong case could be made that Oregon is not harvesting enough timber to ensure the health and natural resiliency of our forests. There is simply too much ‘timber fuel’ to feed these fires.

• Federally owned forests representing 60 percent of Oregon forest lands now account for about 15 percent of the state’s timber harvest. National forests have a timber harvest rate of only eight percent of the forests’ total growth and forests are now dying at a mortality rate of 55 percent.

Thankfully, many of Oregon’s elected leaders realize more must be done. Many of the facts shared in the bullet points were included as part of a recent editorial in the Statesman Journal

by State Representative Sherrie Sprenger.

In her comments, Representative Sprenger made a valiant case for stronger levels of active forest management in federal owned forests in particular. In a recent conversation with an ORLA member in Brookings, he mentioned the cost estimates to contain the Chetco Bar Fire alone will most likely exceed $100 million.

It begs the question – what can we do collectively as Oregonians to make sure appropriate funding is in place for active forest management? What can be done to ensure Oregon’s federally owned forests are not tinderboxes just waiting for the next lightning strike?

Clearly more needs to be done to bring collective voices together that can speak to the importance of more active forest management in an effort to protect Oregon’s natural resources. In the coming months, ORLA will be working with statewide elected leaders and other industry groups to formulate solutions that we hope result in fewer road closures and negative impacts to Oregon’s forests and communities.

In the meantime, we hope you consider assisting those who have been directly impacted by the tumultuous season. Visit Travel Oregon’s wildfire page at http://bit.ly/OTCwf for the latest information and resource links where those less impacted can support those in the industry who have been hit hard

by Oregon’s wildfires. To support families that have had to evacuate contact the Cascades Chapter of the Red Cross at: http://www.redcross.org/local/oregon.

> CONNECT JASON BRANDT • JBrandt@OregonRLA.org

JASON BRANDT, PRESIDENT & CEO OREGON RESTAURANT & LODGING ASSOCIATION

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Lodging News | OCT / NOV 2017

JANE NICHOLS, OWNER Hood River BnB, Hood River

“We neither have the resources nor time, especially during high seasons to anticipate the coming trends or the changes subtly happening. ORLA fills this need for us...�

JOIN NOW! With strength in members comes a stronger voice for the industry. To learn how being a part of ORLA can help you, contact Membership@OregonRLA.org or call 800.462.0619.

OregonRLA.ORG

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GOVERNMENT AFFAIRS

Oregon’s Scheduling Law HOW A BAD BILL GOT BETTER

O

RLA and members of other business groups worked together to negotiate substantial, positive changes to SB 828, the restrictive scheduling bill, before it was finally passed and signed by the Governor. Restaurants and lodging properties who would have been included initially were ultimately excluded and those still affected have a much better, workable law. The real-life stories from

PREDICTABILITY PAY Employers must compensate employees with one hour of pay at the employee’s

Where The Bill Began

Where The Bill Ended after negotiated changes by ORLA and others

Number of Employees:

Number of Employees:

25

500 WORLDWIDE

Predictability Pay:

Predictability Pay:

4 HOURS

1 HOUR

Volunteer Standby List:

Volunteer Standby List:

NOT AVAILABLE

AVAILABLE

Hiring PT Workers to Fill Hours:

Hiring PT Workers to Fill Hours:

REQUIRED

NOT REQUIRED

Franchises Included:

Franchises Included:

YES

NO

Good Faith Estimate of Work:

Good Faith Estimate of Work:

YES

YES

all employees annually

new hires, at time of hire

Schedule Posting:

Schedule Posting:

14 DAYS

8

our members about how this would impact them and the strength of our association helped make these changes.

Below is a chart to help employers understand where the bill started, how bad it could have been for employers, and where it ultimately ended.

7 DAYS

in advance

for first 2 years (2018-20), then 14 days

Recordkeeping:

Recordkeeping:

3 YEARS

3 YEARS

Statewide Preemption:

Statewide Preemption:

NO

YES

Less than 30 Minutes Change to Schedule:

Less than 30 Minutes Change to Schedule:

NO

YES

Employee Input to Schedule:

Employee Input to Schedule:

YES

YES

Right to Rest:

Right to Rest:

YES

YES

Lodging News | OCT / NOV 2017

regular rate of pay, in addition to wages earned, when the employer: • Adds more than 30 minutes of work to the employee’s work shift; or • Changes the date or start or end time of the employee’s work shift with no loss of hours • Schedules the employee for an additional work shift or on-call shift Employers must compensate employees one-half times the employee’s regular rate of pay per hour for each scheduled hour that the employee does not work when the employer: • Subtracts hours from the employee’s work shift before or after the employee reports for duty; • Changes the date or start or end time of the employee’s work shift, resulting in a loss of work shift hours; • Cancels the employee’s work shift; or • Does not ask the employee to perform work when the employee is scheduled for an on-call shift (i.e. if they were supposed to work an eight-hour shift and get called off, they still get half-time pay for eight hours or four hours of pay).

The employer does not have to pay penalty pay if you utilize the voluntary standby list or if an employee initiates shift-swaps.

VOLUNTEER STANDBY LIST An employer may maintain a standby list of employees whom the employer will request to work additional hours to address unanticipated customer needs or unexpected employee absences if the listed employees have requested or agreed in writing to be included on the standby list and the employer notifies each employee in writing. No penalty pay is required to be paid if you utilize the voluntary standby list and can have employees sign up for this list at the time of hire or add their name at any time.

HIRING PART-TIME WORKERS TO FILL HOURS Originally, employers would need to advertise and try to hire internally only to part-time workers if they had additional hours to offer before seeking to hire outside workers for the part-time hours.

GOOD FAITH ESTIMATE OF WORK An employer shall provide a new employee with a written good faith estimate of the employee’s work schedule at the time of hire. The estimate may be based on previous years’ hours.

LESS THAN 30 MINUTES CHANGE TO SCHEDULE Employees may stay on shift up to 30 minutes and/or employers can require employees to stay on shift for up to 30 minutes with no predictability pay penalty.

FRANCHISES Franchises are included if the individual franchisee has locations totaling 500 employees or more that work in the type of services covered (i.e., janitors do not count towards 500).

EMPLOYEE INPUT TO SCHEDULE In the original version, employers were required to attempt to accommodate a worker’s request for schedule and could be penalized if they did not. In the final version, there is not a penalty if the employer is unable to accommodate the employee’s request and the language clarifies the employer is under no obligation to grant employee’s request.

RIGHT TO REST The “right to rest” provision requires 10 hours in between shifts. The final version allows an employee to consent to work before the 10 hours is fulfilled but employer must pay one-and-a-half times rate of pay (i.e., “clopening”).

• Have a meeting with your employees to explain the new law, how it affects their schedule and what changes you may be thinking about making, if any, because of the new law.

For example, after the law passed in San Francisco, some employers required employees to submit time off requests at least two weeks prior to the posting of the schedule. If a schedule needs to cover a 14-day period, employees have to submit time off requests at least 28 days in advance.

FAQs

• Use the Voluntary Standby List.

Employees can sign up or be taken off the Volunteer Standby List (VSL) at will. Those employees who decide to do so however, are more likely to pick up hours and shifts and increase their paychecks. Again, in San Francisco, when employees did not voluntarily pick up shifts, employers often did not fill them due to the financial penalties associated with mandating an employee fill a shift. This results in fewer employees needing to cover more responsibilities.

• You have less than 500 employees • You are NOT in the foodservice, hospitality, or retail industries defined by the NAICS codes in the bill

• Keep in mind the 30 minute rule.

Employees may stay on shift up to 30 minutes and/or employers can require employees to stay on shift for up to 30 minutes with no predictability pay penalty. For employees this means they can close out tables/checks or finish their work without worrying about losing tips or wages, and for employers it means having some flexibility to overlap shifts if necessary to continue serving customers.

For more information, please visit OregonRLA.org/GA or email Astley@OregonRLA.org. LN GREG ASTLEY, OREGON RESTAURANT & LODGING ASSOCIATION

> CONNECT

HOW TO PREPARE Here are a few things employers can do to help navigate the restrictive scheduling law for their employees and businesses:

GREG ASTLEY • Astley@OregonRLA.org

DOES THIS LAW APPLY TO ME? YOU ARE SUBJECT TO OREGON’S SCHEDULING LAW IF: • You have 500 or more employees as a corporate entity (chains are included but franchises are not unless the franchisee entity has 500 or more employees) and • You are in the foodservice or hospitality industries defined by the NAICS codes in the bill YOU ARE NOT SUBJECT TO OREGON’S SCHEDULING LAW IF:

WHEN DOES THIS BECOME EFFECTIVE? • July 1, 2018 • January 1, 2019 enforcement begins • July 1, 2020 is the first date for the 14-day scheduling requirement. Prior to that, employers need to provide a seven-day schedule to employees.

WHAT’S THE “GOOD FAITH ESTIMATE” OF HOURS TO NEW HIRES? • An employer shall provide a new employee with a written good faith estimate of the employee’s work schedule at the time of hire. The estimate may be based on previous years’ hours.

WHAT IS THE “EMPLOYEE INPUT TO SCHEDULE” CLAUSE? • In the original version, employers were required to attempt to accommodate a worker’s request for schedule and could be penalized if they did not. In the final version, there is not a penalty if the employer is unable to accommodate the employee’s request and the language clarifies the employer is under no obligation to grant an employee’s request.

WILL THERE BE ADDITIONAL CLARIFICATION OF THIS LAW? • Yes. The Bureau of Labor and Industries (BOLI) will be holding rulemaking sessions, probably in late winter/ early spring 2018 to clarify and better define some of the more ambiguous parts of the law. ORLA will be active in the rulemaking process to ensure fairness and equity on any changes or clarifications.

OregonRLA.ORG

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NOV 5, 2017 | CANNON BEACH 6:00 pm – Cocktail & Appetizer Reception 7:00 pm – Plated Multi-Course Chef’s Dinner

Overnight Stay, Reception & Chef’s Gourmet Dinner for Two $395 Your getaway begins with check-in at one of three luxury Cannon Beach vacation properties… Surfsand Resort, The Ocean Lodge, and Inn at Cannon Beach. A limited number of rooms are available at each location, so reserve your selection with ORLA today!

In addition to the overnight stay, join industry leaders for an amazing evening on Sunday in the Surfsand Ballroom that includes a cocktail and appetizer reception where a lavish spread of fresh seafood of all varieties sets the tone, followed by a plated multi-course gourmet dinner artistically created for this evening alone!

This highly-regarded annual event draws partakers from around the state for a private gathering and exclusive experience among hospitality industry leaders and supporters. Getaway participants take pride in knowing their attendance at this event directly benefits ORLAPAC and its ongoing efforts to promote and protect the foodservice, lodging, and tourism industry in Oregon.

LIMITED SPACE, RESERVE TODAY!

Contact: Glenda Hamstreet, Oregon Restaurant & Lodging Association 503.682.4422 | GHamstreet@OregonRLA.org

For more information visit

OregonRLA.org/Events Sponsored by:

PROTECTING OREGON’S HOSPITALITY INDUSTRY ON LOCAL AND NATIONAL FRONTS

B

y advocating for public policies that sustain our industry and educating elected officials about the issues and challenges our industry faces, ORLA serves as the voice of hospitality at the local, state and national levels.

J-1 CULTURAL EXCHANGE VISAS On April 18, the Trump Administration issued an Executive Order entitled “Buy American, Hire American” which is designed to bolster protections for certain American-made goods and calls for a review of certain legal visa work programs currently established under federal law. While H-1B visas (high skilled) have garnered the most attention from the Administration and the media, the J-1 Cultural Exchange Visa has become the most recent legal guest visa program to draw the attention of the Administration.

News sources report the Administration is considering taking administrative action to significantly reduce the number of work visas allowed under the program.

The Summer Work Travel program under the J-1 visa allows foreign students to spend up to four months living and working temporary jobs in the U.S. Around 300,000 participants from more than 200 countries and territories visit the U.S. on J-1 visas each year. Exchange visitors may study, teach, do research, share their specialized skills, or receive on-the-job training for periods ranging from a few weeks to several years.

Collaboration between American businesses and international students has evolved to create significant economic benefits for U.S. communities. In 2016, there were 3,334 participants in the J-1 visa program in Oregon.

The political dynamics surrounding this issue are extremely challenging and especially now that the Administration intends to make substantial reforms to the program. The American Hotel & Lodging Association has been working with Americans for Cultural Exchange in lobbying both the Administration and the Congress to limit the impact of the potential negative changes to the J-1 Visitor Exchange Program but need the hospitality industry’s help.

To act on this important issue to the hospitality industry, go to the Americans for Cultural Exchange website at AmericansForCulturalExchange.org and contact your members of Congress on the importance of J-1 visas for your business.

GOVERNMENT AFFAIRS

ADVOCACY UPDATE

PORTLAND 2+2 ORDINANCE ON SHORT-TERM RENTALS After months of efforts by the Oregon Restaurant & Lodging Association (ORLA) and other concerned groups, the Portland City Council passed a resolution on May 31, 2017 to include short-term rental platforms in the Tourism Improvement District (TID) in Portland and impose a $2 per night fee on short-term rentals to help with housing and homelessness initiatives.

The initiative, dubbed the “2+2” ordinance, seeks to level the playing field between short-term rental platforms like Airbnb and HomeAway while at the same time recognizing the adverse impact these platforms have on housing availability in Portland.

By charging these platforms the two percent TID fee, Portland City Council is recognizing traditional hotels with 50 or more rooms are paying the fee to help promote Portland as a tourism destination and short-term rental platforms have been benefitting from promotion without contributing to the effort. Any platform with 50 or more listings in Portland will be charged the fee.

According to a recent Willamette Week story, Airbnb currently has 4,500 listings in the Portland area, making it the largest “hotel” in town.

The $2 per night fee will be assessed on all short-term rental platforms in Portland regardless of the number of listings.

Because traditional brick and mortar hotels are built for temporary lodging purposes and not housing, they do not have the same negative impact these short-term rentals are having on the housing market. Many of the short-term rental platform listings are for entire houses, eliminating them from being used for long-term housing and contributing to the price increases of homes in the Portland area.

“ORLA’s work to help hold these “illegal” hotels accountable is exemplary,” said Troy Flanagan, vice president, State and Local Government Affairs with the American Hotel & Lodging Association. “This type of action is something other municipalities can model to help improve housing and fairness issues in their own communities.”

ORLA has been meeting with the Mayor and City Commissioners since last year on this issue educating them on the impact it has on lodging properties and their employees’ ability to find affordable housing close to their places of employment. LN GREG ASTLEY, OREGON RESTAURANT & LODGING ASSOCIATION > CONNECT GREG ASTLEY • Astley@OregonRLA.org

OregonRLA.ORG

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GOVERNMENT AFFAIRS

You Can Make a Difference

Help Protect the Future of Your Business with the Oregon Political Tax Credit

W

ould you rather give your hard-earned money to the state government or the only statewide organization representing the lodging industry?

Oregon has a unique political tax credit allowing individuals a no-cost way to support the political cause of your choice and direct a portion of your tax dollars in a way YOU choose.

Most people can give up to $100 for joint filers or $50 per individual to an Oregon political action committee and that amount is credited back to you1.

This is a credit, not a deduction like your home mortgage interest deduction or contributions to a charity. This is a dollar-for-dollar credit. In other words, if your total state refund for 2016 was $100 and you made a political contribution of $100 to a qualified political committee, your refund would then be $200.

Contributions must be dated no later than December 31st, 2017 to receive the credit on your 2017 tax return and you can only give up to the maximum amount (so choose wisely…). Finally, the Oregon Political Tax Credit is not a refundable credit. So, if your taxes are already zero, then you won’t get your $50 back!

Less than 10 percent of those eligible take this credit to help support something they believe in.

So the question remains, would you rather contribute $50 or $100 to ORLAPAC and help support our efforts to elect businessfriendly candidates who understand what it takes to run a lodging property in Oregon or would you rather give that money to the state government?

ORLAPAC is the only PAC fighting exclusively for hospitality interests at the Capitol, but we need your support to succeed.

Thank you for considering the opportunity to support your industry!

For more information on ORLA’s PAC, visit OregonRLA.org/ORLAPAC. LN OREGON RESTAURANT & LODGING ASSOCIATION

1. Due to a recent change in Oregon law, individuals with adjusted gross income over $100,000 or joint filers with combined income exceeding $200,000 no longer qualify for the Oregon Political Tax Credit. Seek help or advice from a licensed professional for more information.

ORLA Political Action Donation Form Please make checks payable to ORLAPAC and send to: 8565 SW Salish Lane, Suite 120, Wilsonville, OR 97070 Name Address City / State / Zip Code Email Employer Employer City Occupation Card Number / Expiration Date Name on Card / Signature ORLAPAC Contribution $ 12

Lodging News | OCT / NOV 2017

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EXECUTIVE SEARCH SERVICES

Hir ing Man ager s?

Seeking Growth Opportunities?

GECKO HOSPITALITY CAN HELP!

LIKE PODCASTS? ORLA’s new podcast series, Boiled Down, condenses valuable information and intelligence on the world of Oregon hospitality.

As the nation’s leading Hospitality Specific Recruiting Agency, we partner with restaurants, breweries, hotels, private clubs, and other hospitality/tourism related organizations to connect them with experienced industry professionals.

Finding top talent takes time and dedication; let us do the heavy lifting.

Start your search today by contacting your local recruiter.

Subscribe to Boiled Down on iTunes or wherever you get your podcasts so new episodes are delivered directly to your device!

OregonRLA.org/BoiledDown

Recruiter – OR, WA, AK Michael Chamberlain-Torres, CPC E-mail: michael@geckohospitality.com Phone: 503-360-5517

OregonRLA.ORG

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Universities Address Oregon’s Hospitality Labor Shortage MARYLHURST UNIVERSITY CREATES DEGREE PROGRAM IN RESPONSE TO INDUSTRY TRENDS

O

regon’s hospitality and leisure industry is rapidly changing.

With increasing demand for employees with expertise in business, marketing and technology, in addition to significant growth within the industry, hospitality leaders are facing a substantial deficit when it comes to finding qualified employees. This labor shortage remains one of the biggest challenges facing the industry right now – as well as one of the largest barriers for growth.

It’s hard to ignore the hospitality industry’s current boom. Oregon added 2,100 hospitality and leisure jobs in June alone. Business journals and newspapers have reported on the rapid rise in construction of new local hotels. And current industry estimates suggest there 14

Lodging News | OCT / NOV 2017

are 15,000 job openings in Oregon’s hospitality industry.

As the need for an educated, trained and skilled workforce grows and supply continues to fall short, Oregon universities can help to fill this gap.

A New Kind of Hospitality Workforce The labor shortage is not simply a numbers game. Hospitality leaders are increasingly seeking employees with higher levels of education, as well as experience in fields that complement a career in hospitality.

While practical experience was once key to advancing within the industry, technology and business models are

rapidly changing, and today’s employees need to know and understand more than just day-to-day operations.

Marylhurst University’s John Erickson, a veteran of the hospitality industry, recently discussed these evolving needs.

“The industry is becoming much more sophisticated and strategic, bringing new financial and technological responsibilities for managers in all executive positions,” he said.

These sentiments are echoed by industry leaders across the state.

Hotel managers are now considered for their educational background in addition to experience more than ever before. Experience may provide a leg up,

but without a degree, you could easily be passed over for a promotion or higher executive level position for someone who has completed a higher level of education.

Filling the Labor Shortage Gap Recognizing this need, Marylhurst University developed an undergraduate program to educate the next generation of hospitality industry leaders.

Marylhurst’s new hospitality management bachelor’s degree program is one of a very few degree programs in the western United States that provides a direct path for students to enter a career in hospitality management. It also provides a direct pipeline of fully trained, educated and passionate workers to Oregon’s hospitality industry.

to complete their education at a time and place that is convenient for them, whether they are working the front desk at a hotel, scheduling catering events at a local restaurant or working around their family and children’s schedules.

EMPLOYMENT FACTS

• 15,100 open positions in Oregon hospitality • 2,100+ jobs added in June

INDUSTRY OPINIONS

Hospitality management degree programs have great potential to significantly address the looming labor shortage in the fastest growing industry in the state and across the country. By strengthening and expanding the pool of labor and talent, the industry will not only continue to expand, but will also be able to provide a higher level of service to customers and to do so more efficiently. LN DR.

• Hotel managers are now considered for their educational background in addition to experience more than ever before.

• Experience may provide a leg up, but without a degree, you could easily be passed over for a promotion or higher executive level position for someone who has completed a higher level of education.

• Hospitality leaders are increasingly seeking employees with higher levels of education, as well as experience in fields that complement a career in hospitality.

Working with Industry Leaders In addition to addressing the labor shortage, Marylhurst’s new program will provide industry leaders an opportunity to directly influence and voice what specific needs exist for workforce development within the industry, guiding curriculum development and maintaining close relationships with students, educators and the program director.

A 13-member Advisory Council, made up of influential, knowledgeable advisers from the industry, will help the university to review plans, programs and courses of study. The council will also help to bring in students to benefit

MELODY ROSE, PRESIDENT, MARYLHURST UNIVERSITY

> CONNECT

from the degree program. The Advisory Council members come from all parts of the industry, ensuring that students will be exposed to various aspects of hospitality management.

Ensuring Accessible Upward Movement Working directly with these industry leaders will help to increase the pool of dedicated students and applicants as the industry grows in Portland and throughout the state.

DR. MELODY ROSE

•

Marylhurst.edu

ABOUT

Dr. Melody Rose is the 15th president of Marylhurst University, a premier, not-forprofit, professionally focused liberal arts and business university located in Portland, Oregon. A nationally recognized scholar and previous Portland Business Journal Women of Influence honoree, Dr. Rose has also served as chancellor of the Oregon University System and in numerous roles at other Oregon institutions and organizations.

But to achieve these goals, education programs must be accessible for hospitality employees seeking to advance to management positions. Programs that are available entirely online, such as the one at Marylhurst, can better enable workers OregonRLA.ORG

| Lodging News

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Tapping Into

INTERNATIONAL MARKETS Washington Park PHOTO CREDIT: Jamie Francis / Travel Portland

Surfsand Resort, Cannon Beach PHOTO CREDIT: Travel Oregon

Wilson Ranches Retreat, Fossil PHOTO CREDIT: Christian Heeb / Travel Oregon

16

Lodging News | OCT / NOV 2017

Tumalo Falls, Central Oregon PHOTO CREDIT: Christian Heeb / Travel Oregon

How Lodging Operators Can Take Proactive Steps To Attract Far Away Visitors

D

omestic tourists remain

The rise in international tourism is

educated about opportunities within the

the bread and butter for

being sparked by a growing middle

state, they’re more likely to buy the trips

hotels and other hospitality

class around the world, a desire for the

offered by travel trade companies.

companies in Oregon. But international

types of travel opportunities available in

tourism is seeing significant growth.

Oregon (including outdoor recreation and

In recent years Travel Portland, Oregon’s

According to the consulting firm Tourism

adventure travel), and increased media

second-largest tourism promoter, has

Economics, the number of international

exposure, among other things. State and

switched to a similar consumer-focused

visits to Portland increased from 610,000

local tourism promotion agencies are hard

strategy in most markets. The organization

in 2011 to nearly 700,000 in 2016. Across

at work educating people in other countries

is in the midst of a multi-stage marketing

the state, the number of Chinese tourists

about all Oregon has to offer.

campaign to promote Portland in Japan, its

jumped by 85 percent, while the number

top overseas market. Called Odnarotoop

from Australia and Japan increased by 55

“Travel Oregon has been working in many

(which is “Portland” in Japanese spelled

and 38 percent, respectively. Portland alone

different international markets for some

backward), the campaign has included an

got 38,000 Japanese visitors in 2016, up

time,” says Greg Eckhart, manager, global

entertaining video that allows people to

from 27,500 in 2011.

sales - Asia at Travel Oregon. “We’ve had

insert their face at local destinations and

an office in Japan for well over 25 years.

share the pictures on social media; a song

Companies can greatly benefit from

We also have in-country offices in New

by a Portland band that’s sung in Japanese;

attracting these guests. “International will

Zealand, Australia, China, France, the UK,

and a tour guide featuring a fuzzy character

never be as big as domestic, but it’s about

Scandinavia, Germany, The Netherlands

called Odnaro-Dude. It appears to be

diversifying,” says Billie Moser, vice president

and Canada.” The staff in those offices

working because visitors from Japan are up

of international tourism at Travel Portland. As

coordinate with travel trade outfits to

seven percent in the past year.

well as providing a new income stream, global

ensure the companies are organizing and

visitors are often prone to longer stays and

marketing trips to Oregon.

greater spending, which makes them valuable

The Netherlands is another top target for Travel Portland, and they’re getting equally

guests. Thanks to partners such as Travel

Travel Oregon also works with members

creative in promoting the city there. “We

Oregon and your local Destination Marketing

of the international media to place stories

worked really hard to bring the biggest

Organization (DMO), tapping into this new

about Oregon in magazines, blogs and

reality show in The Netherlands to the

market may be easier than you think.

other publications. As people get more

Portland region to film here,” says Moser.

OregonRLA.ORG

| Lodging News

17

Called “Wie Is De Mol?,” this season of the

many tourists, people from international

Lodging operators can take proactive steps

show had its largest viewership ever. That’s

destinations flock to other parts of the state as

to attract these markets. Take advantage of

expected to spark plenty of interest in the

well. “People from Amsterdam are interested

the educational resources and trip hosting

Rose City.

in eastern Oregon and experiencing Oregon

opportunities offered by Travel Oregon, Travel

as a wild west destination,” Eckhart says.

Portland and local DMOs. Travel Oregon

The decision about where to spend

Central Oregon’s winter sports are attracting

sends out a visitor industry newsletter that

precious marketing dollars is linked to

people from China. The coast is a popular

shares opportunities to reach foreign visitors

the flights coming in and out of Portland

destination year-round.

and business partners, and hosts in-person

International Airport. The airport recently

and online seminars called China Ready.

added direct air service to London, which

“The beauty of the international traveler

Travel Portland offers Lunch and Learn

means Travel Portland will step up its

is that they’re not always coming during

sessions on preparing for global tourists. They

marketing efforts there. PDX also has

summer,” Eckhart adds. Chinese guests

are open to members and non-members.

direct flights between Portland and Tokyo,

represent the highest percentage of overseas

Amsterdam, Reykjavik, Frankfurt and

visitors to Oregon. For them, Chinese New

These organizations also provide lodging

several Canadian cities. A direct connection

Year and the winter months are often a

partners with opportunities to visit with

to Mexico City is coming later this year.

good time to travel.

travel trade companies. “Often Travel Oregon will host clients from some of these

“The Port of Portland is doing an incredible

No matter where they come from,

wholesalers while they’re in the destination,

job of getting international air service that

international visitors are looking for

and they want to meet hotels so they can

the business community needs,” says Moser.

a variety of accommodation types,

get them into their product line,” Eckhart

“We are then charged with filling the plane

including big hotels, cozy B&Bs and

says. “When those opportunities arise,

on the inbound side.”

working ranches.

have your sales people meet with them. It’s

While Portland is a major destination for

Rogue River, near Grants Pass PHOTO CREDIT: Kevin Wright / Travel Oregon

18

Lodging News | OCT / NOV 2017

definitely worth exploring.”

McMinnville wine country, PHOTO CREDIT: Sionnie Lafollette / Travel Oregon

Iron Mountain, Central Oregon PHOTO CREDIT: Christian Heeb / Travel Oregon

Travel Oregon partners with local DMOs

Consider other ways to make your hotel

make visitors feel welcome. Moser suggests

to arrange accommodations for these trips,

attractive to foreign travelers. If you’re

making maps and other materials available

so make sure you communicate to them

already drawing some international visitors,

with both metric and imperial system

that you’re interested in staying informed

ask the front desk staff where people are

measurements. If you offer breakfast, add a

about upcoming trips. “We clearly know

coming from, or look at the analytics

few items that are popular in visitors’ home

which of the hotels in Portland are

provided by OTAs. “That can tell them

countries. If the hotel lobby or guests rooms

interested in international tourists and are

if they’re more attractive to a European

have welcome signs, make sure the message

working with the travel trade to get them

clientele or an Asian clientele,” Moser says.

is written in people’s native language.

business,” Moser says.

“They can ask themselves why that is and

“Those touches mean a lot to people,”

then start catering to those people. And

Eckhart says. LN SOPHIA BENNETT

Not all tourism comes through these

then the hotels are going to start getting

partners, though. “We know up to 40 percent

reviews from guests in their language in

> CONNECT

of the international travel comes through the

their country.” All in an effort to help drive

GREG ECKHART

travel trade. The rest comes from consumers

more bookings.

BILLIE MOSER

•

•

Greg@TravelOregon.com

Billie@TravelPortland.com

booking directly,” Moser reports.

It’s nice to have people who are bilingual People who are booking directly often do

on staff, Eckhart says, but it’s definitely

it on smart phones. “About 58 percent of

not necessary. “Many of the travelers we’re

travel decisions in China are researched

seeing have traveled extensively, so they’re

and made using a mobile phone,” Eckhart

very familiar with traveling in the U.S.

notes. If you don’t already have a mobile-

Many of them speak English.”

friendly website, make sure that’s a priority in your next upgrade.

At a minimum, focus on small efforts to

Music Festival at South Waterfront, Portland PHOTO CREDIT: Jamie Francis / Travel Portland

Summer Lake Hot Springs, Timber Trail PHOTO CREDIT: Gabriel Amadeus Tiller / Travel Oregon

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| Lodging News

19

Presenting Sponsor

OC TOB ER 8 -9 RIVERHOUSE ON THE DESCHUTES, BEND

RECHARGE, RETOOL AND ENGAGE WITH YOUR INDUSTRY PEERS. ORLA’s Convention provides an exceptional opportunity to engage in meaningful discussions on critical issues affecting our industry, learn best practices to run your business, and network with industry leaders and peers.

ANNUA L M EMBER MEE T I N G

HOS PITA LITY INDU STRY AWARDS DINNE R

INDU STRY RE LE VANT P RO GRA MING

Hear a recap of the successes and challenges over the past year and help elect the Board of Directors.

Celebrate the 2017 Restaurateur, Lodging Operator, Allied Member and Employee of the Year.

VENDOR SH OWC AS E

N AT IO NA L A FFILIATE S

INDU STRY CO NNE CTIO NS

Meet with our allied members to talk about what products and services will help your business thrive.

Hear National Restaurant Association and American Hotel & Lodging Association representatives discuss issues impacting our industry.

Network with your peers and cultivate meaningful industry relationships.

TASTE BEND OUT I N G

C L OSING CE LE BRATIO N

Visit participating member restaurants serving something special for Convention attendees.

Shuttle buses will be provided.

Enjoy music, dessert and libations while overlooking the Deschutes River and dancing the night away.

REGISTER ONLINE TODAY! OR E G ONRLA.ORG/ CO N V EN TIO N 20 Lodging News | OCT / NOV 2017

Learn key strategies from speakers and breakout sessions specific to Oregon's hotels and restaurants.

BO O K A RO O M NO W Book your room at Riverhouse on the Deschutes online by going to http://bit.ly/ORLACONVhotel or call 1.866.453.4480 and mention the ORLA room block.

AT-A-GLANCE AGENDA:

PRESENTING SPONSOR

TASTE BEND SPONSOR

CLOSING PARTY/ SUNDAY LUNCH SPONSOR

AWARDS DINNER/ MONDAY LUNCH SPONSOR

KEYNOTE SPONSOR

KEYNOTE SPONSOR

MONDAY BREAKFAST SPONSOR

SUPPORTING SPONSOR

RECEPTION

SUNDAY - OCTOBER 8, 2017 11:00 a.m. – 5:00 p.m. ​11:30 a.m. – 12:00 p.m.

12:00 p.m. – 1:15 p.m.

1:30 p.m. – 5:00 p.m.

6:00 p.m. – 7:00 p.m. ​7:00 p.m. – 9:30 p.m.

Vendor Showcase Lunch Keynote Presentation Breakout Sessions Awards Reception Awards Dinner & Program

MONDAY - OCTOBER 9, 2017 8:00 a.m. – 12:15 p.m. ​8:15 a.m. – 8:45 a.m.

8:45 a.m. – 9:45 a.m.

9:45 a.m. – 12:15 p.m.

12:15 p.m. – 1:00 p.m.

12:30 p.m. – 1:45 p.m.

1:45 p.m. – 4:15 p.m.

5:00 p.m. – 6:00 p.m.

6:30 p.m. – 8:30 p.m.

8:30 p.m. – 10:30 p.m.

Vendor Showcase Breakfast Keynote Presentation Breakout Sessions Lunch Keynote Presentation Breakout Sessions OSU-Cascades Reception Taste Bend Closing Event & Entertainment

RESTAURATEUR AWARD SPONSOR

LODGING AWARD SPONSOR

ALLIED AWARD SPONSOR

EMPLOYEE AWARD SPONSOR

AWARDS DINNER SPIRITS SPONSOR

INDUSTRY-DRIVEN TOPICS INCLUDE: • Hiring solutions and employment best practices • New insights and forecast on Oregon’s lodging industry • Tableside steps to better customer service • 2017 legislative updates • Technology for interactive marketing • Workforce opportunities to address the labor shortage • Employment law, new regulations, and FAQs • National affiliate updates from NRA & AHLA

SEMINA R SPON S ORS • • • •

Clark Nuber PS Cafe Yumm!

Elmer’s Breakfast, Lunch, Dinner Shari’s Cafe & Pies

VE NDO R SHO WCA SE • • • • • • • • • • • • •

Amana PTAC • CoHoRes • Crater Lake Spirits • Creative Lighting Company Crystal Investment Property • Deacon Corp. • Dr. Pepper Snapple Group • Dyson Elliott, Powell, Baden & Baker • Energy Trust of Oregon - Existing Buildings Enterprise Merchant Services • First Data • Fisher Phillips • Fournier Group Great Northern Staff Administrators, LLC • Harvest Restaurant Consultants HospitalityVison • JD Fulwiler & Co. Insurance • Kennedy Restoration Liberty Mutual Insurance • Metro • My Accounting Team • Northland Furniture Occuscreen • Office Depot • Performance Systems Integration Peterson Equipment Co. • RamAir International, Inc. • Regnal Media Righteous Clothing Agency Inc. • SAIF • Serta • SeQuential • Snagajob Summit Cleaning & Restoration • Swire Coca-Cola, USA WhirLocal Neighborhoods, a division of Third River Marketing Visiting Media • World Wide ATM

OregonRLA.ORG | Lodging News OREGONRLA.ORG/CONVENTION | 800.462.0619 | #ORLACON17

21

*EDUCATIONAL PROGRAMMING INCLUDES: KEYNOTE PRESENTATION:

THE INSIDE SCOOP ON MODERN MARKETING TRENDS: Understanding Your Consumer’s Quest for Perfection Ben Powers, Visiting Media Learn how to leverage new immersive media types like 360˚ video, aerial photography, virtual reality, and 3D-modeling to turn existing websites, social feeds, review forums, and referral partner sites into sources of incremental traffic and revenue without presenting huge costs or time burdens to your business.

HIRING WITHOUT HEADACHES: Staffing Solutions Amy A. Robinson, Jordan Ramis PC

TABLESIDE STEPS OF GREAT CUSTOMER SERVICE Paul Paz, Waiters World

Following practical dos and don’ts can help alleviate some of the headaches associated with the hiring process. Learn how to avoid potential discrimination claims as well as important documentation and communication strategies that can be used during the hiring process. Amy will share tips for employment applications, background checks, pre-employment inquiries, and completion of the I-9 process.

The ritual of dining is a series of predictable steps that diners anticipate as part of their experience.

Too often service staff lack the understanding of what and why each step is critical to create a great Oregon restaurant service experience that positions their brand above their competition. Learn the ten steps of restaurant dining service, service-sales strategies to incorporate, and take home a template to build your own custom Steps of Service to elevate the dining experience and revenues.

GENERAL SESSIONS:

HOSPITALITY LABOR SHORTAGE: Analysis and Solutions Todd Montgomery, OSU-Cascades

During the Annual Meeting of the members of Oregon Restaurant & Lodging Association, Jason will provide a brief overview of the association’s accomplishments and challenges, as well as share strategies for the year ahead. Members will also vote on the slate of nominees for the 2017-2018 Board of Directors and proposed changes to the bylaws.

A strong hospitality industry is fundamental to global economic prosperity, and is accountable for 1 out of every 10 jobs worldwide. Currently, the hospitality industry is facing a labor shortage and it is impacting business operations by impeding investment and growth. A national study was conducted to understand why there is a labor shortage in the hospitality industry. We’ll discuss some of the possible solutions to this labor shortage.

ANNUAL MEMBER MEETING President & CEO Jason Brandt, ORLA

NATIONAL ISSUES, LOCAL IMPACT National Restaurant Association and American Hotel & Lodging Association Running a successful hospitality business in today’s economic environment presents a challenge.

Representatives from the American Hotel & Lodging Association and the National Restaurant Association will help us navigate the trends and realities of national issues and the local impact they have on the industry.

BREAKOUT SESSIONS:

2017 LEGISLATIVE UPDATES YOU NEED TO KNOW ABOUT Anne Milligan, Fisher Phillips LLP In this past year, Oregon’s hospitality industry has seen a number of new regulations and legislation come about.

Anne will provide updates on a few of these that are affecting the industry including secure scheduling, pay equity and changes in Oregon’s paid sick leave.

DONATE, DON’T WASTE: Steps to a Successful Food Donation Program Alli Condra, Attorney, Davis Wright Tremaine LLP If you’re not already doing so, learn how to support efforts to eliminate food insecurity and wasted food by donating quality, wholesome food to food rescue programs committed to servicing those who experience hunger.

Alli will help you understand the legal protections and tax benefits associated with food donation, discuss actionable steps to implement within your company. This is a great opportunity to hear about successful examples of food donation and learn how to make it a part of your business.

HOSPITALITY TECHNOLOGY SHOWCASE Bill Smart, OSU-Cascades Oregon State University - Cascades hospitality management program is holding its first annual hospitality technology showcase Monday, Oct. 9. This event will feature the robotics company Savioke and their Robot Botlr. Professor Bill Smart of OSU’s nationally recognized robotics department will also be discussing applications of robotics in the hospitality industry.

LEGAL STEW FOR THE HOSPITALITY INDUSTRY Shane Swilley and Josh Dennis, Cosgrave Vergeer Kester LLP Restaurants and lodging operators are dealing with many new regulations regarding their business operations.

Cosgrave attorneys Shane Swilley and Josh Dennis will present a lively discussion on company obligations surrounding service animals and transgender bathrooms, plus practical advice for dealing with OSHA complaints and inspections.

OREGONSAVES: Retirement Plan for Employees Oregon Retirement Savings Board

Travel Oregon is a key partner to have when trying to bring more visitors to your business. Learn how to tap into tourism resources and build stronger connections with the travel industry. (Separate registration at Industry.TravelOregon.com; Free)

TRENDS AND INSIGHTS IN THE HOURLY HIRING MARKETPLACE Joe Gabriel, Snagajob Hourly worker regulations have been in the spotlight lately, illustrating a changing landscape for employers to navigate. Gain a better understanding of hourly workers - what drives them and what they need to stay motivated – and learn some of the trends and key insights on how you can improve hourly workers’ job experiences to help them maximize their potential.

TREND LINES IN OREGON’S TOURISM ECONOMY: Data, Forecasts and Indicators from the Tourism Industry Scott Warren, Driftline Consulting Drawing from multiple data sources, the session will examine trends in lodging performance, visitation to Oregon, and the factors behind the top-line numbers.

Starting at the macro-level and working down to Oregon and its regions, the session will weave together a variety of lodging, research, and economic data sources to tell a rich story about the condition of the Oregon tourism industry and its trajectory. The goal of the session will be to provide perspective on where Oregon’s lodging industry has been, where it is going, and the factors which drive these trends.

OregonSaves is a new, state-run retirement program for employees of businesses who do not currently offer a retirement savings plan. It allows employees to save a part of each paycheck through payroll deductions facilitated by their employer and invest their savings in professionally-managed investment options in a Roth individual retirement account. Hear more details and

ask questions on how this can be a tool to retain good employees.

22

TRAVEL OREGON 101 Oregon Tourism Commission (Travel Oregon)

* Note: this is a partial list; agenda is subject to change

Lodging News | OCT / NOV 2017 OREGONRLA.ORG/CONVENTION | 800.462.0619 | #ORLACON17

Presenting Sponsor

OREGON HOSPITALITY INDUSTRY AWARDS

HONORED INDUSTRY SUPERSTARS

E

LODGING OPERATOR very year we have the OF THE YEAR pleasure of honoring a SPONSORED BY ECOLAB few outstanding industry PAT professionals who exemplify the McSHANE highest standards of service Executive Vice and commitment to guests, President, InnSight team, association, industry, Hotel Management Group, Springfield and community. During ORLA’s With more than 30 years’ Convention, October 8-9 in Bend, experience in the lodging we will pay tribute to four of these industry and numerous awards in his portfolio, Pat members with the 2017 Hospitality McShane has certainly demonstrated exceptional leadership and distinguished himself as a Industry Awards. If you haven’t successful lodging operator. In 1993, he partnered registered already, it’s not too late. with Richard Boyles to form InnSight Hotel Go to OregonRLA.org/Convention Management Group, an organization employing more than 500 people in the Pacific Northwest. and plan on joining us in the Under Pat’s leadership, InnSight has thrived to celebration!

RESTAURATEUR OF THE YEAR SPONSORED BY JORDAN RAMIS PC

RALPH MATT

Owner / Operator, Best Little Roadhouse, Salem Ask any of his colleagues, and they’d say Ralph is the quintessential “tireless restaurant operator.” He’s spent his entire career in the restaurant industry, starting out as a bartender in college working for Steak & Ale in Tennessee, and then management roles with various restaurant groups including Buffets Inc. over the years. In 2003, Ralph started his own venture, Best Little Roadhouse in Salem, Oregon.

He learned early on “to be successful, you should surround yourself with good people, take an active role in your community, and always be available for your business.” Ralph encompasses the characteristics of a true leader, always showing integrity, genuine care and support of his staff, and continually inspiring them to become successful at what they do. He’s also been a dedicated advocate for the industry; Ralph served on the ORLA Board of Directors 2010-2016 (as Chair in 2014-15), chaired the Policy Committee, and currently serves as Chair for ORLA’s Education Foundation.

become one of the state’s leading hotel groups.

He’s a servant leader who sincerely cares about his team, always inspiring them to perform at their very best. Pat has been a keen advocate for the hospitality industry, speaking out on behalf of the industry regarding the use of lodging tax dollars and the importance of the tourism industry as an engine for recharging the economy. While serving as Chair of the Board, Pat was instrumental in the successful merger of the Oregon Restaurant Association and Oregon Lodging Association.

EMPLOYEE OF THE YEAR SPONSORED BY SNAGAJOB

HEATHER TINCHEROVERHOLSER

Front-of-the-House Manager, Overleaf Lodge and Fireside Motel, Yachats The Overleaf Lodge and Spa is recognized as one of the top destination resorts in Oregon and especially along the Oregon Coast. A key component of that success is its staff, and one in particular, Heather Tincher-Overholser. As Front-of-the-House Manager, Heather goes above and beyond her expected job responsibilities by demonstrating exemplary professionalism and service. She is respected and adored by staff and guests, always making extra efforts to enhance their experiences at the properties.

Heather’s ability to operate all sectors (housekeeping, laundry, foodservice, front desk and maintenance) of the Fireside Motel and Overleaf Lodge has made her a valuable team member over the past 20 years. One of the first Certified Guest Service Gold employees in Oregon, Heather continues to demonstrate her leadership by tutoring fellow staff and helping expand the training program within her properties as well as regionally among other organizations.

ALLIED MEMBER OF THE YEAR SPONSORED BY PORTLAND GENERAL ELECTRIC

McDONALD WHOLESALE COMPANY McDonald Wholesale Company has proven to be an enthusiastic partner of the association, supporting our industry members through community-building activities, sponsorships, and continually providing excellent service.

In addition to being a long-time sponsor and Allied member of the association, McDonald Wholesale hosts industry training classes instructed by ORLA representatives. McDonald Wholesale has made significant contributions to Oregon’s hospitality industry, supporting the local economy and fostering growth in the foodservice industry. McDonald Wholesale was one of only three food distributors in the U.S. to have double-digit growth last year.

We hope you join us in celebrating these honorees at the Convention in October. If you are interested in nominating a fellow industry member for next year’s awards, contact Lori Little at LLittle@ OregonRLA.org.

LN ORLA

REGISTER ONLINE TODAY! O R E G O N RL A . O R G /C O N VE N T I O N OregonRLA.ORG | Lodging News 23

DATA BREACH Potential Impact on Your Hotel

S

eventy percent of data security breaches are targeted at small businesses or particular industries1, and it’s rare that the business itself discovers the breach. Most events are detected by a law enforcement agency or a third party, such as a bank or a card association, that notices a rise in fraud that can be traced back to a specific merchant. When a breach of payment data is reported (or even suspected), it kicks off a series of unavoidable and costly actions: • A mandatory forensic examination: The card associations require that a merchant suspected of having a data breach undergo a forensic examination to determine if a breach has actually occurred and, if so, to what extent. You will need to hire an outside examiner to conduct the investigation, which may last from days to weeks. This examination may require the shutdown of your pointof-sale system during that time in order to preserve evidence.

24

Lodging News | OCT / NOV 2017

• Notification of customers: Most states require that customers, and in many cases the state attorney general, be notified if financial information is suspected of being compromised in a data breach.

Depending on the number of customers and their locations, the process of sending notifications may cost thousands of dollars. What’s more, you may have to send written letters to each customer multiple times to ensure adequate communication with them.

• Credit monitoring for affected customers: You may be required to provide up to a year’s worth of credit monitoring and/or counseling services to customers affected by your breach.

• PCI compliance fines: As noted in a 2015 report by Verizon, “Of all the data breaches that our forensics team has investigated over the last 10 years, not a single company has been found to be compliant at the time of the breach.” If the forensic investigation shows that your business was not in compliance with the

industry regulation at the time of your breach, the card associations and/or your acquiring bank may levy fines against your business, especially if the cards have been used in actual fraud cases.

• Liability for fraud charges: Many merchants assume they have no liability for the fraudulent use of payment cards after a data breach. This is not necessarily the case; as of October 1, 2015, the liability for fraudulent POS transaction may shift to merchants who don’t accept EMV chip cards. EMV cards, also known as smart cards or chip cards, make it virtually impossible for thieves to present a counterfeit card at the point of sale. That’s because with every transaction, the EMV card gives the card reader a unique, secret code that validates the card as authentic. It’s easy to think of the chip as a guard inside the card, preventing a phony card or fake transaction at the point of sale— protecting your business against fraud.

• Card replacement costs: Card issuers may require that you pay the cost of reissuing debit and credit cards of those customers whose data has been compromised.

• Upgrade or replacement of POS system: Depending on what is uncovered to be the source of the breach, you may have to invest in upgrading or replacing your POS system, including servers, software and/or card swipe devices.

• Reassessment for PCI compliance: Once you have repaired or replaced your POS system, in order to qualify to accept payment cards again, you must undergo a complete PCI assessment by an external qualified security assessor (QSA).

When all is said and done, the direct costs of a data breach for a lodging property can be very costly. The numerous indirect and non-monetary consequences can be equally

or even more damaging to your business, including:

business security strategy keep pace with the evolving threat of cybercrime.

• Loss of customer confidence and trust.

For more information on state-of-the-art security products that help protect your business, contact Tom Harris, First Data Sales Director, at 870.598.4048 or Thomas Harris@firstdata.com. LN ARTICLE ORIGINALLY

• Damage to your brand and good business reputation, especially as word travels quickly through social media and review sites.

• Considerable time that you and other employees will have to devote to dealing with and recovering from the breach event.

• Loss of payment card privileges, meaning your business will not be permitted to accept debit and credit card payments if the card associations refuse to do business with you.

PUBLISHED BY FIRST DATA.

> CONNECT FIRST DATA

•

Empsebiz.com/orla

About

First Data is a Board-approved Endorsed Service Provider of the Oregon Restaurant & Lodging Association. Visit OregonRLA.org/ ESP for details.

References 1. Tegan Blackburn, LLC, National Cyber Security

Considering these various significant impacts, it’s critically important that your

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25

PERS Predicament

Task Force Ideas Carry Costs for Employers, Consumers

T

he Public Employees Retirement System (PERS) Unfunded Actuarial Liability (UAL) Task Force described each of its first two meetings as “brainstorming,” but it’s already clear that most of the proposals discussed so far would create a storm of controversy.

Perhaps, that is unavoidable given the magnitude of the problem the task force is charged with studying - ways to reduce the $25 billion PERS unfunded liability.

But there also should be concern that the long-term harm caused by many of the proposals would outweigh the short-term budget benefits. Making a small dent in the unfunded liability will not be enough to stop the long-term growth of PERS, which threatens to soon account for as much as 30 percent of payroll costs for some school districts.

Task force member Cory Streisinger, formerly of Oregon’s Department of Consumer and Business Services, acknowledged the tradeoffs that exist.

“None of our choices are free from downsides,” she said.

Here’s a look at some of the ideas discussed in the first two meetings and the problems they could create.

Taking money from the reserves of the State Accident Insurance Fund (SAIF): This is one of several possible changes to SAIF, the workers’ compensation insurance program for Oregon employers, that the task force discussed. SAIF’s $1.6 billion surplus may look like a tempting target, and the state could take some of that money and still meet regulatory requirements.

But there are several reasons this is a bad idea: • The “surplus” is really working capital.

Unlike many businesses, SAIF has only one source of revenue, which is susceptible to economic slumps or 26

Lodging News | OCT / NOV 2017

unexpected events and, therefore, it needs more money in reserve than a typical business or government agency would.

• A smaller “surplus” would lead to increased risk and higher rates for its employer customers, many of whom are small businesses without other options for workers’ compensation insurance.

• Oregon’s workers’ compensation system is one of the best in the country. It doesn’t make sense to risk breaking a program that works well to make minor improvements in a different government program that already is broken.

Operating the Oregon Liquor Control Commission (OLCC) more like a business: Though the task force inched away from the idea of privatizing OLCC, it did discuss making other changes to reap more revenue from liquor sales. Just as changing SAIF would lead to higher workers’ compensation rates, some of the OLCC ideas - especially increasing liquor taxes - would lead to higher liquor prices.

Other ideas, such as increasing the number of liquor outlets and improving marketing would pose another potential problem, noted task force member Charles Wilhoite of Willamette Management Associates.

Increased consumption of alcohol could have health and social costs, he said.

Privatizing some functions of public universities: The task force discussed several ways to sell assets or transfer control of some operations at public universities and colleges. This idea is ironic, considering that the motive for reducing PERS costs is to make more money available for education. If there is a way to operate universities more efficiently and profitably, the benefits should go to students in the form of lower tuition - not to PERS recipients.

Applying some of the money in state rainy day funds toward PERS: This idea goes beyond ironic. It’s wrong and should be discarded. Oregon has one of nation’s most volatile fiscal structures.

The state, like the nation, is deep into an economic recovery and growth is slowing.

Rainy day funds should be preserved for an inevitable downturn.

To read the reports submitted to the task force, visit http://bit.ly/UALtask.

With each of these and other ideas - such as raising fees for licenses and services - that the Task Force is considering, somebody will end up paying more or taking on more risk, whether that is the private sector employees and employers who rely on and pay for SAIF, or anyone that goes to a liquor store or on a fishing trip.

The task force will present its recommendations to the Governor, who then could propose legislation to be considered in the 2018 Short Session. But before asking Oregonians to pay more, the Legislature needs to do what it failed to do in 2017 and make a serious effort to control spending. LN OREGON BUSINESS & INDUSTRY

> CONNECT MARK HESTER • MarkHester@oregonbusinessindustry.com

About

Oregon Business & Industry is Oregon’s largest and most influential comprehensive business association advocating for a strong economy and a healthy, prosperous and competitive Oregon.

The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions, beliefs and viewpoints of the Oregon Restaurant & Lodging Association.

Note: This article originally ran in the August 31, 2017 OBI Weekly Update.

MEMBERSHIP

LODGING PERFORMANCE HOTEL BENCHMARK DATA

The information contained in this report is based upon independent surveys and research from sources considered reliable, but no representation is made as to its completeness or accuracy.

This is intended solely for internal purposes of your company and should not be published unless authorized by STR, Inc. ORLA members have access to these reports on OregonRLA.com.

MONTH - JULY 2017 VS JULY 2016

Occupancy (%)

Avg Rm Rate ($)

RevPAR ($)

Percent Change from August 2016

2017 2016 2017 2016 2017 2016 Occ ADR RevPAR Room Room Room

Rev Avail Sold United States

82.6 83.0 178.24 173.67 147.25 144.10 -0.4 2.6 2.2 4.0 1.8 1.3

Oregon

81.5 83.0 141.07 139.65 114.96 115.85 -1.8

1.0

-0.8

1.4

2.1

0.3

Portland, OR

84.7 86.8 153.99 153.96 130.39 133.67 -2.5

0.0

-2.5

0.6

3.1

0.6

Oregon West Area

76.6 78.6 136.49 131.36 104.55 103.24 -2.5 3.9 1.3 1.5 0.2 -2.3

Oregon East Area

78.6

73.8 74.2 130.85 129.10 96.62 95.82 -0.5 1.4 0.8 2.7 1.9 1.4

Pacific

75.1

121.66

114.90

95.59

86.25

4.7

YEAR TO DATE - JULY 2017 VS JULY 2016 Occupancy (%)

Avg Rm Rate ($)

RevPAR ($)

Percent Change from YTD 2016

5.9

10.8

12.0

1.1

5.8

PARTICIPATION Properties

Rooms

2017 2016 2017 2016 2017 2016 Occ ADR RevPAR Room Room Room Census Sample Census Sample

Rev Avail Sold U.S.

66.6 66.3 126.81 124.12 84.46 82.27 0.5 2.2 2.7 4.5 1.8 2.3 54851 33022 5156601 3812882 Pacific

74.9 74.5 162.63 158.66 121.82 118.23 0.5 2.5 3.0 4.5 1.5 2.0 8033 4435 748811 581594 OR

66.9 67.4 119.71 117.13 80.11 78.97 -0.7 2.2 1.4 3.5 2.0 1.2 908 478 64740 45693 PDX

75.3 76.0 134.07 131.45 100.90 99.93 -1.0 2.0 1.0 3.7 2.7 1.7 279 211 27708 24732 OR West 60.2 60.6 110.50

107.75 66.48 65.34 -0.8 2.6 1.7 1.6 -0.1 -0.9 279 110 16464 8348 OR East

56.2 54.9 96.14 93.08 54.02 51.09 2.4 3.3 5.7 7.9 2.1 4.5 154 74 8884 5765

NEW MEMBERS

ORLA WOULD LIKE TO WELCOME THE FOLLOWING • Amana PTAC, Kenmore, WA • Asana Grille & Village Wine Smith, Brookings • Ball Janik LLP, Portland • Best Western Plus Agate Beach Inn, Newport • Bobbio’s Pizza, Central Point • Brand Steakhouse, Corvallis • Brewmaster’s Cottage, Portland • Chosen Payment, Moorpark, CA • Chula’s Restaurant & Cantina, Eugene • Comfort Inn & Suites, Salem • Comfort Suites Redmond Airport, Redmond • Courtyard by Marriott, Corvallis • Dirt Vine Wine, Newberg • Dundee Bistro, Dundee • Eastside Deli, Portland • Econolodge, Portland • The Fox & Hound’s, Portland • Hyatt Place, Eugene • Ickabod’s Tavern, Beaverton • Jo’s Motel and Campground, Fort Klamath • King’s Row Inn, Milwaukie • Las Palmas, Jacksonville • Lucky Millers, Portland • McKenzie Brewing Company, Eugene

• Motel 6 PDX/Gresham, Portland • OpenTable, San Francisco, CA • Oregon Parks and Recreation Department, Salem • Other Guy’s Cascade Gorge Restaurant & Lounge, Prospect • Portland Marriott City Center, Portland • Portland Monthly, Portland • Portland Trailblazers, Portland • Prep A Chef ’s Kitchen, Bend • Redfish, Port Orford • Rivershore Bar & Grill, Oregon City • Rogue River Coffee Company, Reedsport • Sabrina Hodges Insurance Agency, Portland • Sadie Mae’s Deli Dogs, Portland • Sam’s On Franklin, Eugene • Snagajob, Arlington, VA • Southern Oregon Business Equipment, LLC, Medford • Springhill Suites, Bend • Stratex, Chicago • Sun Glow Inc., Heating & Air Conditioning, Portland • Super 8 Portland Airport • Super 8, Woodburn • Time Equipment Company, Bellevue, WA • Two Sisters Play Café, LLC, Milwaukie OregonRLA.ORG

| Lodging News

27

Extreme Adventures, Extreme Risks GROWING TREND FOR RESORTS TO OFFER HIGH-RISK AMENITIES

T

he Public Employees Retirement System (PERS) Unfunded Actuarial Liability (UAL) Task Force described each of its first two meetings as “brainstorming,” but it’s already clear that most of the proposals discussed so far would create a storm of controversy.

Examples of these activities include parasailing, standup paddleboards, kayaks, jet skis, all-terrain vehicles, bicycling, horseback riding, rock climbing, and zip lines. Offering these high-risk amenities may attract guests, but also creates a risk for injury.

Hotel operators must decide if they have the expertise to directly manage the highrisk activity, or if they should instead transfer the exposure to a third-party vendor. To jumpstart thinking, answer the following questions: • What are the applicable municipal / state laws or governing industry standards?

• What type of risk management is necessary to ensure safety and mitigate liability exposure?

• Does a third-party vendor absolve the hotel from liability exposure?

For third party vendors, develop a contract to transfer the financial risk of a guest injury. Contracts typically include stating all responsibilities in a clear manner, an indemnification agreement in the hotel’s favor, as well as the expected insurance requirements for the operator of the highrisk amenity. These insurance requirements focus on general liability (GL) with the vendor’s policy extended to the hotel via a requested “additional insured” endorsement.

For high-risk amenities, it is important to insist the vendor have GL limits equal to or exceeding those of your hotel. A highrisk amenity vendor with just one million in GL coverage may not protect your hotel in the event of a serious injury. A safety review for each high-risk amenity should occur to reduce accidents and potential negligent claims.

ZIP LINES According to a November 2015 NBC News report, since 1997, 16,850 people have been injured badly enough on a zip line to require an emergency-room visit.1

To reduce liability exposure for high-risk amenities, whether vendor-controlled or not, hotels should partner with a contract attorney to complete the following: • Develop enforceable legal documents, including participation agreement forms, releases, and waivers.

• Develop medical clearance forms (if applicable), including sections that highlight the inherit risk of the activity, thus enhancing the effectiveness of assumption of liability and risk transfer.

To reduce the risk of zip line injury, industry professionals comprised of the Professional Rope Course Association (PRCA) developed the ANSI/PRCA Ropes Challenge Course Installation, Operations, and Training standard, which was approved in 2014.2 This voluntary standard focuses on the design, manufacture, construction, inspection, maintenance, and instructions of ropechallenge courses. As a result, this standard enables operators to conduct in-house training, certify their own staff, and designate qualified persons to conduct course inspections and repairs.

These documents need to specifically protect the exposures for the hotel, not just the third-party vendor (if applicable).

If a resort operator is considering this attraction, it is recommended the resort operator or the vendor comply with

28

Lodging News | OCT / NOV 2017

this standard as well as comply with state or local regulation. Other safety responsibilities may include providing a thorough orientation training to all guests, as well as safety equipment which may include a helmet, harness, backup lanyards, gloves, goggles, jacket, face mask, and knee pads.

BEST PRACTICES • A safety review for each high-risk amenity should occur to reduce accidents.

• Since 1997, 16,850 people have been injured on a zip line badly enough to require an emergency room visit.

• There are no federal rules regulating the training or certifying of parasail operators.

PARASAILING According to a National Safety Transportation Board report, over three million people parasail every year, and eight have died since 2009, with at least five others sustaining serious injuries.3 There are no federal rules regulating the training or certifying of parasail operators or the inspection of equipment. However, The Parasail Safety Council has produced safety guidelines including the following: • Conduct a pre-flight safety briefing.

• Check the local weather to avoid parasailing in winds greater than 15mph.

• Do not parasail beyond 600 feet from the parasail tow.

• Operate within a safe distance from the

MEMBERSHIP

NEWS BRIEFS

HAPPENINGS FROM AROUND THE INDUSTRY

CORRECTION

NEW WEBSITE, EMAIL PLATFORM ORLA launched its new website, OregonRLA.org, the end of July. The new site is mobile responsive, incorporates interactive elements (i.e., online registration, contact forms, and surveys), and overall will provide a better user experience for our members. Additionally, ORLA rolled out new designs for our email communications; Insider e-newsletter, Alerts, and Event campaigns. If you are not receiving emails from ORLA and would like to, please visit http://bit.ly/ORLAStayInformed or contact Membership@OregonRLA.org.

FALL REGIONAL MEETINGS ON TRACK ORLA’s government affairs and membership teams will hit the road again for several regional meetings around the state. Our goal is to continue with our commitment to meet our members where they do business and make sure they have the latest information available to make thoughtful decisions in running their business. This next round of meetings kicks off this month. For the latest schedule and to RSVP for a meeting in your area, visit OregonRLA.org/grasstops.

Please note the corrected contact information from the Buyer’s Guide: Crystal Investment Property, LLC Joe Kennedy: 503.530.1316 Lincoln Tower, 10260 SW Greenburg Rd, Ste. 400, Portland, Oregon 97223 Crystal Investment Property, LLC has experts in Real Estate, Hotel Consulting and Hotel Management.

COMPLIMENTARY LODGING LISTINGS All Oregon lodging properties are afforded a free basic listing in both the online lodging directory on TravelOregon.com and in the printed 2018-2019 Travel Oregon Official Visitor Guide. While ORLA members are automatically included in the directories, property managers are encouraged to update or verify their listing information for accuracy.

Watch for a letter in the mail this month on how to update your listing.

INDUSTRY CALENDAR EVENTS & ACTIVITIES

Oct. 8-9 – Bend, OR ORLA Annual Convention

Nov. 5 – Cannon Beach, OR Chairman’s Getaway

Nov. 15 – Portland, OR Women & Leadership

Educational programs, awards program, and social + networking opportunities.

OregonRLA.org/Convention

Intimate gathering of hospitality leaders for a chef ’s dinner and overnight stay.

OregonRLA.org/ChaimansGetaway

A conversation (over whiskey) about breaking barriers, avoiding bias and building alliances. OregonRLA.org/Events OregonRLA.ORG

| Lodging News

29

shoreline, which is three times the tow rope length of the boat.

In addition, the American Society for Testing and Materials has two voluntary parasailing standards. These include ASTM F3099, which provides guidelines for the operation, maintenance, and inspection of parasail vessels and equipment, as well as crew training for flying passengers;4 and ASTM F2399, which has guidelines for monitoring weather conditions for parasailing operations.5 Whether your hotel operates a parasail or uses a vendor, be sure to follow these safety guidelines as well as applicable state and local regulations. LN LIBERTY MUTUAL INSURANCE

About

References

For more than 60 years, the award-winning Liberty Mutual Research Institute for Safety has helped to improve the safety and health of people throughout the world. Liberty Mutual has been partnering with the Oregon Restaurant & Lodging Association for more than 30 years. For more information, contact your independent insurance agent or call 800.463.6381.

1. Fox, M., and Edwards, E. (October 2015). Zip line injuries soar, study finds. Retrieved from NBC.news.com 2. Professional Ropes Course Association. (March 2014). Current published standard. Retrieved from: PRCAinfo.org 3. National Transportation Safety Board. (June 2014) Special investigation report: Parasailing safety. Retrieved from NTSB.gov 4. ASTM Standard F3099, Standard Practices for

The principles contained in this material are general in scope and, to the best of our knowledge, current at the time of publication. Liberty Mutual Insurance specifically disclaims all liability for damages or personal injury alleged to arise from reliance on the information contained in this document.

Parasailing, ASTM International. Retrieved from ASTM.org 5. ASTM Standards F2399, Guide for Monitoring Conditions for Safe Parasail Operations,” ASTM International. Retrieved from ASTM.org

> CONNECT LIBERTY MUTUAL INSURANCE • CConsultingCenter@LibertyMutual.com

2017 Liberty Mutual Insurance, 175 Berkeley Street, Boston, MA 02116

SAVE THE DATE • November 15th, 5:00 p.m.

Bringing women together to network, discuss gender-specific issues regarding careers, advancement, and entrepreneurship while enjoying the company of like-minded colleagues. Food, drinks, and whiskey tastings will be available!

BridgePort Brewing Co. | 1313 NW Marshall St., Portland OR 97209 Reserve your tickets at: bit.ly/WomenAndWhiskey

30

Lodging News | OCT / NOV 2017

PRESENTED BY:

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Your association is dedicated to helping members operate with greater ease, efficiency and savings. Member participants save millions of dollars each year by using ORLA’s Endorsed Service Providers. For more information contact Jennifer Starr at 1.800.462.0619.

HOURLY MARKETPLACE

Snagajob is proud to partner with ORLA to bring their full suite of hiring software and solutions to ORLA members at special member pricing including a 10% discount. Snagajob helps put people in rightfit positions through the Snagajob Marketplace and PeopleMatter, the end-to-end platform of talent and workforce management solutions.

OregonRLA.org/Savings

MUSIC LICENSING

MEMBERSHIP

MEMBER SOLUTIONS

HOW CAN WE SERVE YOU? Membership in ORLA means being a part of the only organization in the state devoted to protecting and promoting the interests of the hospitality industry. Contact us for questions; let us know what issues are affecting your business and how we can help. We have your back!

MEMBERSHIP REPRESENTATIVE CONTACTS:

STEVEN SCARDINA Regional Representative 503.718.1495 SScardina@OregonRLA.org JOEL POMERANTZ Regional Representative 541.517.3791 JPomerantz@OregonRLA.org

CREDIT CARD PROCESSING

SEX TRAFFICKING RECOGNITION AND RESPONSE TRAINING

PROPERTY & LIABILITY INSURANCE

KIM LEIGHTY Regional Representative 503.510.9036 KLeighty@OregonRLA.org MARLA McCOLLY Director of Business Development 503.428.8694 MMcColly@OregonRLA.org

OFFICE PRODUCTS & SERVICES

GOVERNMENT AFFAIRS CONTACTS:

ESSENTIAL HEATH INSURANCE COVERAGE

WORKERS’ COMPENSATION INSURANCE

JASON BRANDT President & CEO 503.302.5060 JBrandt@OregonRLA.org GREG ASTLEY Director of Government Affairs 503.851.1330 Astley@OregonRLA.org

ORLA’S HOSPITALITY HUB Visit OregonRLA.org/Savings to view additional member-exclusive offers from allied members aimed at improving your bottom line.

JOIN YOUR ASSOCIATION TODAY! GENERAL INQUIRY: OregonRLA.org

| 503.682.4422 | 800.462.0619 Membership@OregonRLA.org | Info@OregonRLA.org

GLENDA HAMSTREET Executive Coordinator Government Affairs 971.224.1509 GHamstreet@OregonRLA.org

OregonRLA.ORG

| Lodging News

31

HELPIN G MARKET LOCAL R ES TAURANTS! NORTHWEST DINING GUIDES

Website, Facebook and YouTube

DINING OUT IN THE NORTHWEST BLOG

Featuring the people, places and events of the NW

ANDROID APP

Easily find more than 700 participating restaurants

Online Dining Guide • PDX-TV Reports • Radio • Diner Surveys • Shaker Signs • Travel Portland Center Brochures

DININGOUTNORTHWEST.COM

F S A F ood . co m • 503. 980. 2586 32

Lodging News | OCT / NOV 2017