Dirty Tricks
This level of concern over competition appears to be having a negative effect on the market, with suppliers even considering breaking the law in order to maintain their market share, as well as to please operators who are out to benefit financially from their concerns.

For example, when our suppliers were asked if corruption, in terms of bribery, was becoming a problem that was negatively affecting their business, almost half (49%) of our respondents said that it was, compared to only 40% in 2013.

One of the main examples of corruption appears to be the increasing number of occurrences in
which potential clients have asked for a bribe in order to secure an order, with 54.8% of our suppliers reporting this had happened to them, compared to only 34% in 2013.

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This pressure from clients to bend the rules also appears to have got the better of some of the region’s suppliers, with 73% of respondents admitting that they know of other suppliers who use monetary bribes to secure orders, up from 63% last year, while 7% of our respondents have openly admitted that they would offer a bribe to a client, compared to 0% in 2013.

As the Hotelier Supplier Survey is completely confidential, our respondents were happy to share their views on this market trend, and even why they themselves were tempted.

One supplier admitted that “the biggest challenge we pose [sic] is bribe ... Right from receiver to purchasing we have to pay and hotels need competitive prices as well.”

Another respondent also bemoaned the fact that “most chefs and purchase managers ask for commission” while another said that “who gives more to the purchasing department ... he will have the deal. And the big companies have more money to spend in this situation.”

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