The life s work of hoteliers worldwide is to

The life’s work of hoteliers worldwide is to provide the weary with a safe place to sleep. 2

Sadly, every night, millions of people are displaced from their homes by war, famine, and natural disasters. 3

When natural disasters, such as tsunami, hurricane, earthquake, landslide, tornado and flood occur, hundreds of aid organizations spring into action to help those in need. 4

In almost all cases, though, these organizations face huge logistical challenges in delivering aid to those in need. Roads and bridges are out; ports and airports may be closed; corruption is common; bureaucratic roadblocks are widespread. 5

The needs of victims of natural disasters are immense: clean water, security, food, medical treatment, protection against disease, and a plan for rebuilding their lives. But the most immediate need is Shelter First. Exposure to the elements often kills more victims that the initial disaster itself. 6

In most cases, those displaced from their homes by natural disasters will need temporary shelter for many months, and new permanent homes thereafter. But up until now, even temporary shelter takes weeks to get in place. While medium-to-long-term shelters are being purchased, shipped, and erected, temporary instant “hotels” to house the victims for the short term are urgently needed. Shelter First will provide that First Shelter. 7

What is Shelter First? 8

What is Shelter First? • Shelter First is conceived as a not-for-profit organization which, in conjunction with the member organizations of the International Hotel & Restaurant Association, hotel & restaurant companies, industry suppliers, and industry foundations, provides immediate short-term shelter to the victims of natural disasters worldwide. • Shelter First is meant to be: – One of the primary philanthropic activities of the global hospitality industry – Laser focused on providing short-term shelter rather than trying to meet longer term housing needs – A vehicle for substantial positive publicity for the hospitality industry worldwide as it helps those needing a safe place to sleep. 9

What is the Fundamental Concept of Shelter First? 1. Shelter First will purchase and pre-stage temporary shelters, in containers, at various points around the world. Each container will include shelters (which will vary based on climate and anticipated needs), modular flooring, blankets, and water purification tablets. 2. These containers will be designed to be air dropped directly to the victims; no need for roads or bridges to be open; no need to clear customs or pay bribes; no intermediary bureaucrats. 3. Pre-arranged agreements will be entered into between Shelter First, “deliverer” countries, and “recipient” countries. These agreements will permit immediate delivery by airlift and pre-clearance for flights and customs. 10

What is the Fundamental Concept of Shelter First? 4. Delivery will be either via military aircraft or by commercial carrier with air drop capacity. 5. The standard will be to drop containers to victims within 24 hours of a request by the recipient country to Shelter First. 6. Shelters will be designed to be easily erected by the victims themselves and to protect them from the elements in the subject climate for up to 8 -10 weeks. 7. Over time, the inventory of pre-staged containers around the world will be sufficient to help tens of thousands of victims of a single disaster. 11

How Would Shelter First Be Funded? • The primary funding concept is to solicit contributions of $USD 100 per year per hotel and per restaurant (not per room or per seat) from each of the following stakeholders: • • The owner The management company The brand Additional funding would be sought in the form of annual pledges from: • • • Purveyors Financial institutions Foundations and charitable organizations 12

How Would Shelter First Be Funded? • According to Smith Travel Research, there approximately 49, 000 hotels in just the US (of 20 rooms or more in size) with about 27, 000 of those being chain affiliated. • Data on the hotel supply globally is less comprehensive, but the common wisdom is that there are roundly 150, 000 hotels in the world. • At US$100 per hotel from each of the various parties (e. g. owner, brand, operator), plus contributions from purveyors and others, an annual fund of $10. 0 million seems in reach within a few years. • The expectation is that Shelter First would operate on a budget of ten percent of contributions, with 90 percent going to provide the shelter to those in need. 13

How Would Shelter First Be Managed? • Shelter First would have a Board of Directors comprised of representatives of its major donors and stakeholders. • It would also have a very small management and fundraising team working in close cooperation with its “operating partners. ” • Shelter First would be a not-for-profit organization set up under the most favorable tax regimes. 14

Who Would Be Shelter First’s Operating Partners? • It is anticipated that Shelter First will enter into an operating or joint venture agreement with CARE International. CARE was founded in 1946, and last year its work reached 48 million people through 861 projects in 70 countries. • CARE USA is one of twelve affiliated organization making up CARE International. CARE USA has expressed strong interest in being the primary partner of Shelter First in the 70 countries in which they operate. 15

Who Would Be Shelter First’s Operating Partners? • It is also anticipated that Shelter First will be very closely affiliated with the International Hotel & Restaurant Association and its member associations around the world such as the American Hotel & Lodging Association. • Shelter First also plans to form partnership relationships with organizations of purveyors, designers, financiers, and foundations. 16

What is the Feasibility of Shelter First? • One might reasonably ask, “Why has this not been done before? ” The answer is not that no one had thought of it. • Rather, the answer is, there has been no industry which has marshaled its substantial resources to overcome the many hurdles and challenges which the Shelter First concept poses. • • • Air drops are almost exclusively a military activity, and NGOs are rightfully cautious about relationships with air forces. Treaties must be negotiated in advance to permit overflights. Shelters must be designed for varying situations. Substantial funding must be raised on an ongoing annual basis. Current organizations have so many needs to meet that it is not possible to focus just on short-term shelter, and just natural disasters (as opposed to wars, famines and the like). 17

How Do We Know Shelter First Will Work? We don’t. • So, before attempting any major fundraising effort, a valid, comprehensive feasibility study must be undertaken to determine: • • • What kinds of shelters (tents, yurts, trailers) are needed for varying situations? How should they be packaged and what kinds of containers are needed? Location of warehousing and inventories. Transportation systems to victims in varying conditions. Inventory levels in various parts of the world based on possible need. Legal and government mechanisms to guarantee 24 hour delivery. Fundraising plan Staffing and organizational structure Roles of partners and participants Five year financial plan 18

The Shelter First Study Team • The Shelter First feasibility study will be undertaken by a team comprised of CARE USA, The Logistics Institute at Georgia Tech, and Berins & Co. , LLC. – – – CARE USA’s Emergency & Humanitarian Assistance Unit, which has decades of experience in providing food & shelter to disaster victims in over 70 countries, will investigate organizational and legal issues. Georgia Tech will provide 5 -6 current graduate students in its School of Industrial and Systems Engineering to study product, transportation, delivery systems and logistics matters. David Berins of Berins & Co. , LLC, the individual who has conceived Shelter First and obtained the support of CARE and Georgia Tech, will provide the technical consultants with the leadership and ongoing vision for the program. 19

The Way Forward • The initial organizers of Shelter First (David Berins, Rick Swig and Jim Burba) have set the following goals for moving this initiative forward: 1. 2. 3. 4. 5. 6. 7. 8. Raise initial funding for feasibility study by mid-February Complete feasibility study by June 30, 2006 During feasibility study, work out terms of partnership relationships and roles between Shelter First, IH&RA, CARE, and other partners. Revise and fine tune concept based on feasibility study. Prepare a major fundraising plan commencing in Fall 2006, with presentations at various industry conferences. Staff organization and begin operations by January 1, 2007. Begin implementation of deliverer-recipient agreements in early 2007. Begin purchasing of inventories in mid-2007. 20

A safe place to sleep. Shelter First is the means for hoteliers and restaurateurs worldwide, and those who help them succeed, to help meet that simple and fundamental human need. We appreciate the opportunity to share this vision with you, and hope you will join us to make it a reality. 21