VZCZCXRO0216
RR RUEHCN RUEHGH RUEHVC
DE RUEHGZ #1056/01 2610902
ZNR UUUUU ZZH
R 180902Z SEP 07
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 6478
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC

UNCLAS SECTION 01 OF 02 GUANGZHOU 001056 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD ECON PGOV CH
 
SUBJECT: Hotels in Guangzhou Face Food Safety Challenge 
 
 
¶1. (U) SUMMARY: In order to meet international food safety 
standards, foreign luxury hotels in Guangzhou import many of their 
ingredients and supplies, and even perform their own testing. They 
work diligently to raise the practices of vendors, employees, and 
contractors to the quality levels that clients expect from 
international hotels. The hotels follow Hazard Analysis and Critical 
Control Points (HACCP) guidelines originally established in the 
United States and now observed internationally.  END SUMMARY. 
 
Hotels Pay High Costs to Assure Safety 
--------------------------------------------- ------ 
 
¶2. (SBU) Food safety concerns have created challenges for foreign 
luxury hotels in South China.  Hotel managers at the Shangri-la, 
Westin, and The Ritz-Carlton here in Guangzhou tell us that they 
must assume more responsibility for food safety and quality than in 
other parts of the world.  When reports arise regarding the safety 
of local goods, luxury hotels take few chances and import what they 
need.  Chefs at the hotels have full authority to make any purchases 
necessary. 
 
¶3. (SBU) Francoise J. Cnockaert, General Manager of the Guangzhou 
Ritz-Carlton (opening in November of 2007) expressed concern over 
difficulties in confirming the origins and proper handling of meat, 
poultry, and dairy products prior to arrival at the hotel.  This was 
echoed by the Westin Hotel's Chef Michael Poutawa, who told us that 
his hotel imports almost all of its meat and shrimp from places with 
higher safety standards like Australia, Brazil, and Hong Kong.  Its 
Oysters are brought in exclusively from New Zealand.  He noted that 
Inner Mongolia, which produces some organic products, is also a 
source for certain goods.  Poutawa also expressed concern about 
local vegetables.  The hotel uses separate containers for their 
transport and special cleaning solutions to wash them. 
 
¶4. (U) Some of the supplies needed to comply with international food 
handling standards must also be imported. The hotels follow Hazard 
Analysis and Critical Control Points (HACCP) guidelines originally 
established in the United States and now observed internationally. 
In order to meet the standards, hotels in Guangzhou have to import 
expensive special colored labels used to tag, date, and monitor 
almost all food in the hotels. These special, hard-to-remove 
stickers are placed on the vacuum sealed plastic bags. Removal of 
the stickers damages the bag, making it difficult to change dates on 
items without being detected. 
 
The Lengths to Which They Go 
---------------------------- 
 
¶5. (SBU) Many Guangzhou luxury hotels work diligently to reduce 
risks from the local supply chain. The Ritz-Carlton plans to 
formally conduct its own random food sampling, testing, and analysis 
according to their individual corporate standards.  The hotel 
reportedly has an on-site laboratory where food will be tested for 
bacterial growth. While none have yet gone as far as to inspect 
their supplier's facilities, one hotel mentioned plans for doing so 
in the future. 
 
Sharing Information 
------------------- 
 
¶6. (SBU) Until local standards rise, surviving in this market 
requires informal collaboration and trust.  Westin's Chef Poutawa 
reports that he must leverage personal relationships with reputable 
suppliers and other hotel managers to ensure quality and food safety 
for his clients. In an environment where it is not feasible to know 
completely the sanitation conditions or refrigeration history of all 
of the food before delivery, managers must trust their suppliers to 
a large degree.  A strong network among hotels and restaurants also 
helps identify unreliable suppliers. Purchasing managers maintain a 
list of certified suppliers; if sub-par products are discovered, or 
a patron becomes ill due to food contamination, word spreads 
quickly, and the supplier is effectively blacklisted. 
 
Competition Among Chefs Raises the Bar 
-------------------------------------- 
 
¶7. (SBU) Despite the tight networks, Cnockaert, who has hotel 
management experience in Jakarta, Seoul, and Osaka, commented that 
competition among the hotel's acclaimed chefs contributes to high 
standards and food safety.  Each chef uses his or her own personal 
judgment because the quality and safety of their cuisine is not just 
business -- it's highly personal and one's reputation rests upon 
performance. 
 
Educating Vendors, Employees and Contractors 
-------------------------------------------- 
 
 
GUANGZHOU 00001056  002 OF 002 
 
 
¶8. (SBU) The Westin's Poutawa told us he has had to educate 
potential vendors and suppliers of meats, vegetables, or other food 
products on proper handling, sanitation, and refrigeration.  He 
rejects shipments when his requirements aren't met.  One hotel 
required a particular vendor to purchase separate containers for 
transporting the hotel's food and set cleaning standards for those 
containers. Another hotel insisted that a vendor purchase 
refrigerated vehicles. 
 
¶9. (SBU) Hotel managers report many challenges in ensuring that 
their own staff follows proper food safety practices. The 
Shangri-La's Director of Marketing Jorgen Christensen, said staff 
training is a major expense for the hotel both in direct costs and 
employee hours.  One hotel manager acknowledged that the failure of 
staff to follow proper procedures had caused the hotel to receive a 
significantly reduced score in a recent audit of its compliance with 
HACCP standards.  The manager mentioned that while the need for 
improvement persists, he is confident that further training will be 
effective in ensuring proper practices are followed. 
 
¶10. (SBU) The Westin's Poutawa emphasized that the need for 
vigilance on standards extended beyond staff and suppliers of food 
products.  When he was involved in construction of the hotel in 
2005, he had ordered work redone to correct critical problems.  In 
one case, contractors had left a 1/4-1/2 inch spaces in the floor 
and ceiling moldings that could have allowed dangerous and unsightly 
mold to grow.  In addition, Poutawa described how cost cutting 
modifications were made without his authorization. For example, 
instead of importing the specialty refrigeration cases he had 
requested, his local contractor ordered Chinese manufactured ones. 
The contractor did not understand why he would want to spend so much 
money on an imported model when the "same" product could be 
purchased much cheaper locally.  These failures to meet standards 
resulted in delays and frustration for both sides. 
 
GOLDBERG