THE Kirk’s troubled hotel project in the Holy Land has recorded its first profit, it was announced at the General Assembly yesterday.

The Scots Hotel in Tiberias, Israel, on the edge of the Sea of Galilee, realised a profit of 312,000 at the end of 2006 and was said to be performing ahead of its 2007 budget.

Plans have also been mooted to add spa facilities to the complex.

The news follows three years of turmoil and internal division within the Kirk over the project. Last year, the World Mission Council, the hotel’s managing body, cancelled plans to expand the premises from 69 rooms to 130, while defending it from accusations it had become an expensive “white elephant”, having recorded a loss of 300,000 during the previous year.

The Rev Colin Renwick, who addressed the Assembly on the subject yesterday, said: “The Scots Hotel in Tiberias is functioning well.

“At the end of 2006, in spite of closure during the war between Israel and Hezbollah, the hotel realised a Net Operation Profit of $615,000 (312,000).”

He added that the figures showed how quickly the area’s tourist economy could recover from conflict, and said it had been appreciated by local people that “the Church of Scotland did not run away” during this difficult time.

Speaking outside the Assembly, Mr Renwick said that while the hotel was developing an international reputation, the fact that Palestinians could not get access was a “running sore”.

“People from the West Bank and Gaza find it very difficult to get passes to travel in Israel and even more difficult to get ones that will let them stay overnight in Israel.

“That is the running sore that I spoke about. They would willingly use it. We would love them to use to it.”

He said that an increasing number of Scots were also choosing to visit the area. “At least 20 pilgrims are coming out this year, considerably more than in the past and there are plans for groups in 2008.

“Generally, groups returning to Israel are on the increase. It took a bit of a hit last year with the war with Hezbollah, but the overall trend of the past two years has been up.

“When I’ve travelled to Israel and Palestine, I’ve seen more people from overseas than I was seeing in 2001, when it was at an all-time low.

“Also the hotel has gained credibility in regard of its good quality and being a place that provides a good and welcoming service. Word has got out about this place.”

Mr Renwick said that the news had helped to soften resistance to the hotel, but added that the Kirk would “remain vigilant” about it, pointing to the “vulnerability” of the area.

THE Kirk has owned the property which houses the hotel since the 19th century, when it operated as a hospital. The upgrading of local medical facilities during the creation of Israel in the 1950s saw it become a guest house for Church of Scotland pilgrims.

The 10.3 million revamp began in 1999 as the Middle East became increasingly violent. The hotel reopened in 2004.

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At any moment in time, countless entrepreneurs worldwide are hovering over hot computers trying to think up the next big thing. We want to start companies, create new products or services, extend product lines, but sometimes we search and search for the breakthrough idea and nothing comes. Is the well dry? Temporarily. You simply need to prime the pump.

We can start with disabusing ourselves of the notion that we must create an Earth-shattering, change-the-world, amazing invention. That’s not the case at all. All we need is something better, or something pined for, or something fun, or something that removes pain (this one’s my favorite). Let’s talk about different types of innovation, and in the process, I think you’ll see that ideas are not really that hard to come by.

In 1957, Igor Ansoff published the «www.businessweek.com» in the Harvard Business Review. It was such an excellent illustration of innovation that many entrepreneurs still use it today.

The Ansoff Matrix shows four different growth strategies that result by combining existing or new products with existing or new markets: market penetration, market development, product development, and diversification. For existing markets and existing products, you’ll want to work on market penetration. How can you do incremental innovation? How about product-line extension? That would work. Examples of this are Coca-Cola («www.businessweek.com») with Diet Coke, Cherry Coke, Vanilla Coke, Caffeine-free Coke. Customers are the Innovators

Starbucks («www.businessweek.com»), however, is my favorite. Before they got into sandwiches, salads, and other food items, they had already extended the heck out of «www.businessweek.com» (BusinessWeek.com, 9/4/07). How many drinks does Starbucks offer? Guess. You won’t believe it. 19,000. Yep, 19,000 variations of coffee are available at Starbucks. And who does most of the innovation? Their customers! It’s even free.

For existing markets and new products, you’ll be doing product development. What else can you sell in your current market? Who else would benefit from your products and services? Think about ways to extend your product into other markets. Look at cell phones. The cell-phone companies have done a terrific job of infiltrating socio-economic levels by offering prepaid phone service. They’ve reached across age groups with the family plans being offered. And how about PDAs? They used to function as simply a calendar datebook and address book for your contacts, but now they are also used as phones and even mini PCs! Those companies extended their products into many other markets they probably didn’t even think about when they released their first versions.

For new markets and existing products, you’ll be focused on market development. This area is for classic up-selling. Up-selling means selling new or upgraded versions of your products to your existing customers. Consider Google («www.businessweek.com»): The company has not been a “search engine” for ages. Google today is more than an advertising business, it’s a software vendor with extended products and services such as Google desktop and Gmail, a shopping site with Froogle, and it just keeps growing. How about hybrid cars? You probably already have a car, but now you want to be more environmentally conscious. So you need a hybrid, but would you purchase one from the same manufacturer that sold you your previous car? Probably. Paying Premium for Getting It Our Way

For new markets and new products, you’ll be consumed with diversification. Where’s the pain? Who wants or needs our product? Why use FedEx («www.businessweek.com») when you have the U.S. Postal Service? Why use Dryel («www.businessweek.com») when you have a dry cleaner? Why use «www.volunteermatch.org» when you can find a local place to volunteer? Why pay for a personal MRI when your doctor could possibly get you one for free? Because we want to do things our way, on our terms, by methods we perceive to be better, more effective, more efficient—and we’re willing to pay a premium as a result.

Spend some time considering how the Ansoff Matrix fits into your business’s growth strategies. Keep in mind, incremental innovation, new innovation—neither one is better. Entrepreneurs capitalize on both. And any kind of innovation will help you get and stay funded.

Have an innovation dilemma? Christine@mightyventures.com.

NICOLAS Sarkozy, the French president, yesterday said a diplomatic push by the world’s powers to rein in Tehran’s nuclear programme was the only alternative to “an Iranian bomb or the bombing of Iran”.

In his first major foreign policy speech, Mr Sarkozy emphasised his existing foreign policy priorities, such as opposing Turkish membership of the European Union and pushing for a new Mediterranean Union that he hopes will include Ankara.

He also presented some new ideas, such as renewing high-level dialogue with Syria and expanding the Group of Eight industrialised nations to include the biggest developing states.

Avoiding a clash between Islam and the West is the “first challenge” facing French diplomacy in the 21st century, he said, and security agencies in western governments must work in “total co-operation” to combat terrorism.

The new president is still enjoying a prolonged honeymoon with French voters, 71 per cent of whom say they are satisfied with his performance according to polls published yesterday.

Mr Sarkozy said a nuclear-armed Iran would be unacceptable and that major powers should continue their policy of incrementally increasing sanctions against Tehran while being open to talks if Iran suspended nuclear activities.

“This initiative is the only one that can enable us to escape an alternative that I say is catastrophic: the Iranian bomb or the bombing of Iran,” he said, adding that it was the worst crisis currently facing the world.

Tehran says it only wants to generate electricity but it has yet to convince the world’s most powerful countries that it is not secretly pursuing nuclear weapons.

His remarks came in marked contrast to those of former president Jacques Chirac who, in February, said that a nuclear-armed Iran may be inevitable, provoking consternation in western capitals which had maintained a tough line with Tehran.

Mr Sarkozy criticised Russia for its dealings on the international stage. “Russia is imposing its return on the world scene by using its assets, notably oil and gas, with a certain brutality,” he said. “When one is a great power, one should not be brutal.”

Energy disputes between Russia and neighbours such as Belarus and Ukraine have raised doubts in Europe about Moscow’s reliability as a gas exporter. It supplies Europe, via its neighbours, with about a quarter of its gas demands.

Mr Sarkozy had warm words for the United States, saying friendship between the two countries was important. But he said he felt free to disagree with American policies, highlighting what he called a lack of leadership on the environment.

Mr Sarkozy said he was prepared to hold high-level talks with Syria if it backed French efforts aimed at ending the political crisis in Lebanon. “If Damascus committed itself to this path, then the conditions for a Franco-Syrian dialogue would be in place.”

But he stuck to his predecessor’s stance in demanding that a timeline be drawn up for the withdrawal of troops from Iraq.

Mr Sarkozy said the only option for Turkey’s accession talks with the European Union was a form of privileged partnership short of EU membership, and said he wanted a Mediterranean Union to take shape next year.

Turkey has said that project should not be an alternative to Ankara joining the European Union.

Mr Sarkozy proposed setting up a “committee of wise men” to consider the future of Europe, including the Turkish question.

Mr Sarkozy appears determined to play a leading role in world affairs. He is due to travel to New York in September to address the United Nations General Assembly and is also planning a trip to China and to Darfur with Gordon Brown.

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