"The Spirit of Davos has changed in past four or five years-- but not because of demonstrations, but because business is tougher now, they don't have enough time to go skiing," he said the other day. "I mean they have their meetings, and their appointments. Ten years ago, in my opinion, was completely different. It's 98 percent business now. Of course, we would prefer to go back to a time like 10 years ago, and I think for the participants themselves it would be nicer too."

His reference was to the thousands of high-level participants at the annual meeting of the World Economic Forum who have gathered here each year. Thirty-two years ago when Klaus Schwab founded a small conference for European managers that would one day become the WEF, the "Spirit of Davos" meant a conference where the CEOs of some of Europe's biggest companies could bring their families; that was when 50 percent of their time was spent on leisure activities, getting to know one another socially.

Where has the Spirit of Davos gone? This year to New York, a city whose business schedule reflects more realistically that of the conference. Here in Davos, though, everyone is wondering if it will come back. Some want it to, others have had enough of fences, dogs, and soldiers with guns.

Schwab has called this move a gift to New York, having been in the city on September 11 when the World Trade Center was leveled by planes hijacked by terrorists from the Middle East. He envisions holding the WEF in New York not only as a show of support for the beleaguered city, but also as an ideal setting to tackle terrorism issues. But there were other reasons why the conference took a hiatus from Davos.

"I remember 10 years ago, or even 15 years ago when you went skiing during the WEF I always came home with five cards of people that I had met on the ski lift, or on the pistes; inviting me to South Africa, inviting me here or there, of course I was younger then," said Susanna Gysi, a college teacher and mother. "People that participated in the WEF went skiing during their time off or when the WEF stopped over lunch for three hours each day so they could go skiing. And really you met them on the pistes; in the hotel bars you could speak to them. You had an exchange of opinions with the so called normal locals in Davos. But that has absolutely gone away. The people that now participate, they are guarded against the environment against the opponents, against the locals."

Gone are the days of three-hour lunches, the WEF has now reached a world class category of conference--where participants are tightly scheduled (last year some days had as many as 380 different meetings), and even more tightly protected. Worried about gathering protesters, the local authorities heightened security at the last meeting in January 2001. Protesters,frustrated at being unable to demonstrate in Davos--even the train service was stopped for a day--rioted in Landquart and Zurich causing several hundreds of thousands of Swiss Francs in damages. Davos, for all that it is the largest ski resort in Europe, boasting over 24,000 hotel beds, is still a small town, with only one road in and one road out. In the winter this is also complicated by the 8-12 feet of snow the town, which is the highest town in Europe at 1,600 meters (about 6,000 feet), gets annually.

"The idea is not to build a fortress around Davos in 2003 as it was in 2001," said Klaus Huber, Minister of Economy for the Graubünden Canton Government, in which Davos is located. "The idea is to have open and safe platforms as it was in the years before. But if there are protesters, we have to make sure that this happens in a controlled fashion, whether that's possible or not."

"Let's not beat around the bush--here the main problem was on who was going to finance security," said Armin Egger, Director of the Davos Tourismus, a private company that runs the conference center where the WEF is usually held, and is charged with promoting tourism in Davos. Last year the CHF 7.8 million (the equivalent of nearly $6 million) in addition security costs was split: 3/8 paid by the federal Swiss government, 3/8 by the government of Graubünden, 1/8 by Davos and 1/8 by WEF. These charges were in addition to the cost of the involved local police of Graubunden.

"It was also a question of time. Switzerland is more basically democratic than most places, and for an outsider it might be funny to consult every one, hold a referendum for what sometimes seems like a little thing. But they have to do that here," said Egger. The debate on whether to again host the WEF came late this year and focused on how the financing of security was going to be divided. "So they were running out of time, and of course, I think after September 11 every one was a little more sensitive."

Even before September 11, the Swiss government had been wary about security. Last year's riots were not the only protests that ended badly in Europe. The Swedish police shot three protesters in Güttenberg during a European Union Conference in June, and the Italian police shot and killed one protester at the violent riots surrounding the Group of Eight world leaders conference in Genoa in July, not to mention recent protesters in Melbourne, Australia and Montreal, Canada.

"The reason why it is New York this year is not the root cause of what happened in Landquart and Zurich last January, because that could happen the same way this year again," said Huber. "This issue is more what happened in the meantime in Genoa, Güttenberg, Saltzberg, etc, New York--the terror in September. The conclusion of these events lead to what's going on right now. It was not a question of whether we could do it, it was in making it a safe environment, in getting police form different Cantons, and all this has to be in balance with WEF 2003."

Switzerland is divided in to 24 Cantons, or states, and lacking a national police force, Graubünden must borrow available police from states as far as Geneva to protect the WEF.

It's not a question of money, Huber said, denying reports that the Swiss government had balked on paying up to CHF10 million (about US$7 million) for security and additional costs, but rather a question of getting the police forces from the other Cantons in a year where Switzerland had many large events, such as the Swiss Exposition which will involve four Cantons and will be held for the first time since the 1960s, that have already stretched the police forces.

"We had assurances from the Swiss government that they would be able to meet security costs," said Charles McLean, spokesman for the WEF in Geneva. "We had discussions on political, federal, and Caontonal levels about security protection. Protecting a meeting like ours after September 11, they, understandably, had some concerns."

Two recent studies have been done on the impact of the WEF on Davos. One, concluded last month, prescribed more openness in its dialogue. The other, yet to be finished, will look at the economic impact comparing last year's WEF conference to this year without it.

Certainly one industry in Davos affected by five day-conference that typically runs Thursday to Tuesday, effectively taking up two weeks of tourism time, is the ski industry.

"What we would like is if the WEF started Monday and ended on Friday, for example," said App. "The schools have a holiday to do some winter sports, about two weeks, and this period starts end of January- beginning of February and this is the main season for us because then parents come with their children. So for us it would be good if the WEF were, say, in the middle of January, something like that would solve the problem. "

Last year, said App, the ski industry lost over one million Swiss Francs during WEF, because no one skis anymore during that time. "I think the people that are here with WEF really don't know that it's possible to go and ski here. That's something that I would like to change, to sometimes go up in the mountains."

At the same time the four and five star hotels will be hurting this year without the WEF. "We have received 500,000 CHF from the government budget that would have gone to the WEF," said Egger. "So we got this money to do some extra promotion to fill the gap that the WEF will leave. It will leave a big gap, especially for the high quality hotels given how the announcement came so late, and so suddenly."

One of the centers for socializing and events during the WEF is the five-star Steigenberger Belvedere Hotel located on the main promenade near the Congress Center. Last year one of the 180 events held at this hotel was reception hosted by US President Bill Clinton for 35 heads of state; this year no such parties have been booked so far.

"I'm pretty convinced that we will still be fully booked, it's not exactly the same clientele as it is during the WEF, because during WEF we host about 20 heads of state, and hotshots in the economy and business, so it will be different," said Ernst Wyrsch, General Manager of the Steigenberger Belvedere. "If it's a time-out for one year we can live with it, if it's longer then we'll have a hard time."

The WEF has grown each year; last year there were more than 2,000 participants. In New York this year even more are expected, some 3,000 people. Schwab usually limits the number of participants, but this year in New York is not only exceptional in its venue and program, but it also offers an opportunity to expand the conference a little.

"We are expecting more people from South and Latin America and Asia then we usually get," said McLean. "I guess it's easier for them to get to New York."

The WEF is one of the largest conferences held annually in Davos, not in terms of numbers, but in terms of preparation, media coverage, and security. The ski resort figured in Thomas Mann's "Magic Mountain," and has been used as a locale in a number of movies over the years.

Davos, as it was at the turn of the century, is still a large medical center, hosting many medical conferences throughout the year. It also hosts the world snowboarding championships annually, as well as speed skating and cross-country skiing events. But it is the WEF that gets it the most amount of international attention : the cover of Time magazine, 15 pages in Newsweek Magazine, and daily coverage from major American television media, for example. It has become a global conference, rivaling anything put on by the UN, but in such an environment it is increasingly difficult to limit the number of participants and keep the intimate Spirit of Davos.

"One has to realize that the members of the WEF, they are our guests, and all they want to have is their meeting up here. But our surroundings, all of the difficulties the past two to three years, have been really disturbing those people who want to meet here. We have to have a base again where they can meet safely and comfortably, with a good feeling--a safe feeling. And we have to show them that we are responsible that we give them the hospitality they are looking for," said Hanspeter Angerer, owner of the three Intersport stores in Davos and President of the Davos Tourismus Board.

Angerer, who has lived in Davos all of his life, expects that the economic impact of not having the WEF in Davos will be minimal. Some of the conference rooms have already been rented to a large international bank. Although, some of the stores in Davos were taken by surprise at the last minute decision not to have the Forum here. Angerer, whose stores always do less business during the WEF, is not the only store owner effected by the WEF, or this year by its absence.

"We ordered a lot of high quality stock before the announcement was made," said Hans Sprecher, owner of the Hat and Congress Shop on the Promenade. "I don't know now how we will sell all of it. Davos has a different personality each week, one week snow boarders, the next doctors, and, of course, the WEF. We have to order stock to serve them all, but some how I don't see the snow boarders buying up the extra Burberry's, or similar, stock."

It's hard to tell what the general consensus is in this small resort of fewer than 10,000 permanent residents. A recent poll showed that 60 percent of Davos residents want the WEF to come back, and the Davos Parliament voted 14-3 to have it back again in 2003.

"I think that the big hotels and the tourism board and all of them, they want the WEF, but if you ask the average person on the street, they don't care. In fact it would be a lot less hassle if it weren't here," said Dr. Peter Wurthmann, a physician at one of the eight local clinics in town.

On thing for sure, if it does come back to Davos it won't be in the same form as last year. The Swiss government is working to find a way to avoid protests, and integrate them into the Forum. It has until the end of the WEF meeting in New York to tell Schwab if it is possible to have it back again next year.

"Because Davos was treated like a fortress last year the people that lived there also had some difficulties, unsafe feelings. These unsafe feelings are something that we cannot accept because we live in a democracy. A lot of people had real difficulties with the situation, and we understand that," said Huber. "For the next year for them we will make sure that we can find, probably, a better solution."

While no one can force someone as busy as Bill Gates to ski, or the Prime Minister of Malaysia to recite his dinner conversation for the sake of transparency, most of the people in Davos and in the Swiss government agree that a toned down, more informal meeting is more appropriate for a venue like Davos. Shop keepers and restauranteurs, not to mention the ski areas, would also appreciate more emphasis on leisure time.

"I like foreign people to come, I like managers to come and see the place but now they don't see where they are. I don't even think they know where they are. They're in a huge hotel, 6 o'clock this place, 7, 8 another place. I don't even think they know that they are in Davos except when they are in the Congress Hall and there is the meeting," said Monique Maes, co-owner with her husband of Restaurant Cafe Neue Liebe on the Promenade. Last year, she said, her first indication of how much the WEF changed was when an insurance salesman came to the restaurant offering riot and protest coverage.

But with so many world leaders, and Europe's anti-globalization protesters growing in numbers each year, an idea of an informal WEF may be unrealistic.

"I would like it to come back, but for me it would be ideal if it were in a small context, and less political. You know sometimes you had about 40 ministers or heads of state; it was all about politics," said Gysi, who said that if next year turns out to be anything like last year she would send her six-year old daughter to her parents house during the WEF, for fear of violence.

"The WEF is too big it's blown up, it's hard to find rooms for them, hard to keep security the way it should be," she said. "It costs a lot of money the security, and the normal shops, the normal people they don't do business with them any more. I would be very surprised if it did come back to Davos, but I would be very happy for it to come back smaller, say half of what it is now. Not like it was in the very beginning, but like 10 years ago, that would be perfect. Security has changed all over the world. You fly to New York now, it's not like flying there a year ago."

As Davos celebrates its first major snow of the season, just in time for a gathering of 4,000 cross country skiers, the town is gearing up for the start of the tourist season in December--this year minus the piles of fences ready to go up for the WEF.

"The WEF was founded here, it grew up here," said Egger. "It is like a child of Davos, it belongs to Davos, it was brought up here. And the title WEF Davos in New York, world wide you are talking about Spirit of Davos, so yes we'll miss it and are sad it's not here this year, but we will be happy to have it back in 2003." The WEF New York meeting will keep the name Davos.

But the question remains whether the child has not outgrown Davos, and even the Spirit of Davos. Can Klaus Schwab replicate the intimacy of a Swiss village in New York?

The conference rooms at the Waldorf Astoria are being renamed after the conference rooms in Davos; Jakobshorn, and Parsenn this year will only be conference rooms. The Swiss consulate in New York is preparing to throw the traditional Country Reception, last year given by Saudi Arabia, on the opening night of the WEF in New York, another link to home. But what happens when the child grows up and makes its way into the world alone? It remains to be seen if the WEF can keep with the intimate frame work of its past, and its new form of the present and future.

Still, the World Economic Forum can expect significant protests in New York. "Public Eye on Davos," a nongovernmental organization says it "aims to provide informed criticism of the World Economic Forum and the neoliberal policies it promotes." Until this year, "Public Eye on Davos" organized meetings in Davos. Now it plans to organize discussions between representatives from both northern and southern countries on "the negative impacts of a globalization that only represents economic interests, and the social and environmental development alternatives."

The "Public Eye on Davos" is coordinated by the Berne Declaration, an independent organization supported by 16,000 members and based in Zurich and Lausanne, Switzerland. Since 1968 the Berne Declaration says it has campaigned for fair and environmentally sound North-South relations in Swiss politics, economics, culture and consumption.